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Problems Of Buying Land

 

1) The Real Estate Industry Is Unregulated

Thailand has no regulations governing the real estate industry. You have limited protection concerning real estate transactions. You could be charged unreasonably high fees and commissions. In the west most agents provide full disclosure of fees and commissions.

2) 'You don't need a lawyer, this is a standard contract'

For your safeguard have a specialised lawyer review the contract for you. If you sign a document in Thai it becomes a legally binding contract once you sign.

3) Thailand issues four types of land titles

There are four types of land title deed available in Thailand: Freehold land title (Chanote), Nor Sor Sam Kor, Nor Sor Sam and Sor Kor Nueng (rights of the owner decrease with each new option listed). The best way is to buy land using the first option stated here, known as a 'Chanote'.

4) Avoid making a deposit

Never make any deposit without an agreement, or a receipt, stating that such payment will be used for a reduction of the price. After a deposit payment is made to reserve the right to purchase land it is possible that the deposit is not recorded and the buyer receives no credit for it, and when this does happen it is normally non-refundable.

5) Thai translations into English

The Possibility exists that the owner/developer will provide two contracts (Thai and English) and the contents of the two are different.

6) Condo Development over 49% foreign ownership

Thai law allows foreigners to own 49% of the total space of all units in a condominium project. Verify with the developer that your ownership in the project will not be over 49% total space of all the units within the project.

7) Not dealing with the owner, or owner's, authorised agent directly

Always verify the originality of the land title. Fake land titles have been reported. Also, there are those who will try to sell land without having the legal right to do so.

8) Buying an incomplete condominium project

A buyer should be aware that there are a number of projects which have never been completed for different reasons. Choose carefully a project and a developer. Due diligence is very important in your buying process.

9) Responsible party for fees and expenses at time of registration

Verify who is responsible for fees payable at the time of registration. All fees are negotiable. A skill legal negotiator will help you greatly.