There are 4 easy steps to buying a condo in Thailand which we have listed here. Would you follow each step then buying your unit is very easy without any errors or repeating the most common mistakes in property transactions.
First you need to have a title search done on the property. This ensures a few things that you would need to know before buying the property.
- Is there a mortgage over the property;
- Is there a lease registered against the property;
- Is the seller the real owner of the property;
- Is there a usufruct registered over the property;
- If there is a mortgage is it in arrears;
- Can a foreigner own the property considering the 49% rule;
- Is the title-deed correct.
These are issues which need to be looked into and it would usually be best to have a law firm conduct a due diligence report for you. Know what you are buying and getting into before you sign on the dotted line.
The sales agreement which has to be signed. Do you fully understand what it says or is it in Thai. Most times in Thailand people tend to try to use a standard sales agreement however this does not cover many things which might become relevant later. A good example is latent defects to the property. As an example if the owner says all is fine and you can buy it but does not tell you that during winter the walls go all damp because of shoddy construction. These all need to be covered in the event you need to approach the seller again later.
Payment is usually the full price when it goes to the Land Department. If you are buying it with a mortgage loan then this has to have been completed already with the bank before you reach the Land Office.
Property ownership is transferred and each has to pay what would normally be due. We have listed on another pay who pays what and costs during a property transfer. Read the note and ensure that you are not paying what the seller or for that matter the buy if you are seller should be paying.
Walk into any of our offices in Thailand or call us on our toll-free US or UK-based numbers for more advice on property transactions in Thailand. Always make use of your own lawyer during property transfers so that you know someone is looking after your best interest.
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