Category: Property

Escrow Accounts in Thailand

Post author By siamlegalpattaya
Post date November 26, 2024
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Escrow accounts in Thailand play a critical role in real estate and business transactions, ensuring security and transparency for both parties involved. These accounts are primarily used to safeguard funds during significant financial exchanges, such as property purchases, mergers, or business deals. This article explores the legal framework, operational aspects, benefits, and challenges of escrow arrangements in Thailand.

1. Legal Framework

Escrow Act B.E. 2551 (2008)

Thailand’s legal basis for escrow accounts is established under the Escrow Act. This legislation defines the roles, responsibilities, and regulations surrounding escrow services to protect all parties involved in transactions.

Key Provisions:

Only licensed financial institutions or authorized entities can act as escrow agents.
Funds held in escrow must remain separate from the agent’s operational funds.
The escrow agreement outlines conditions for the release of funds, ensuring impartiality and fairness.

Applicable Transactions

Escrow accounts are commonly used in:

Real Estate Purchases: Protects both buyer and seller by ensuring funds are transferred only when contractual obligations are met.
Business Transactions: Includes mergers, acquisitions, and joint ventures where funds or assets are held until conditions are satisfied.

2. How Escrow Accounts Work

Agreement Formation:
Both parties sign an escrow agreement specifying the conditions for fund release. This contract includes payment schedules, milestones, and dispute resolution processes.
Fund Deposit:
The buyer or investor deposits the agreed-upon amount into the escrow account. The escrow agent holds these funds securely until the contractual conditions are met.
Verification and Release:
Upon fulfilling the terms (e.g., successful property transfer, completion of due diligence), the escrow agent releases the funds to the seller or beneficiary.

3. Role of the Escrow Agent

The escrow agent acts as a neutral third party, ensuring that funds are not released prematurely. Responsibilities include:

Monitoring Compliance: Ensures all contractual terms are satisfied before disbursing funds.
Holding Funds Securely: Maintains a separate account for each transaction to prevent misuse.
Dispute Resolution Assistance: May provide support in resolving disagreements by holding funds until mutual agreement or court resolution.

4. Benefits of Using Escrow Accounts

For Buyers/Investors

Security: Protects against fraud by ensuring funds are only released when obligations are met.
Transparency: Provides a clear process for fund handling, reducing risks associated with large transactions.

For Sellers/Service Providers

Assurance of Payment: Guarantees that funds are available and held securely.
Confidence in Deal Closure: Reduces the risk of last-minute cancellations or defaults.

5. Common Challenges and Considerations

Legal and Regulatory Compliance

Ensuring that the escrow agent is properly licensed and compliant with Thai law is critical.
Understanding the terms of the escrow agreement is essential to prevent disputes.

Costs and Fees

Escrow services typically involve fees, which can be a percentage of the transaction amount or a fixed fee. These costs should be factored into the overall transaction budget.

Dispute Resolution

If a dispute arises, the escrow agent may freeze funds until the issue is resolved through negotiation or legal intervention. This can delay transactions but ensures fairness.

6. Real Estate Escrow in Practice

In Thailand’s real estate sector, escrow accounts provide critical protection for foreign buyers, who may be unfamiliar with local laws or processes. Common scenarios include:

Off-Plan Purchases: Funds are held until construction milestones are completed.
Resale Transactions: Ensures clear transfer of title and payment processing.

Example: A buyer deposits funds into an escrow account when purchasing a condominium. The agent releases these funds to the seller only after verifying that the title deed has been transferred and there are no outstanding liabilities.

7. Future Trends and Developments

The use of escrow accounts in Thailand is expected to grow as international investment increases and regulatory frameworks strengthen. Advances in digital escrow services and blockchain technology may further enhance transparency and efficiency.

Conclusion

Escrow accounts in Thailand offer a reliable mechanism for securing high-value transactions, particularly in real estate and business dealings. By providing a neutral third-party service, they protect the interests of both buyers and sellers, ensuring that contractual obligations are met before funds are released. Understanding the legal framework and operational nuances of escrow arrangements can help parties navigate complex transactions with confidence and security.

Property

Thailand Villas

Thailand Villas. Thailand, a kaleidoscope of vibrant culture, breathtaking beaches, and delectable cuisine, offers a unique vacation experience. But for those seeking an extra touch of luxury and privacy, Thailand’s villas beckon with unparalleled charm.

Immerse Yourself in Tranquility

Unlike traditional hotels, villas provide a secluded haven. Imagine waking up to the gentle lapping of waves on your private beachfront villa, or unwinding in your infinity pool overlooking lush rice paddies. Thailand’s villas cater to diverse preferences, from modern masterpieces with panoramic ocean views to rustic retreats nestled amidst verdant jungles.

Unveiling the Variety

Thailand’s villa landscape boasts something for everyone. Here’s a glimpse into the enticing variety:

Beachfront Bliss: Luxuriate in oceanfront villas with direct beach access, perfect for families or groups seeking endless water activities and sun-drenched days.
Island Hideaways: Escape to secluded island villas, offering an unparalleled sense of privacy and a front-row seat to Thailand’s stunning archipelagos.
Urban Escapes: For a vibrant city experience, consider stylish urban villas nestled amidst bustling Bangkok or Chiang Mai, providing a tranquil haven close to the action.
Jungle Retreats: Immerse yourself in Thailand’s rich biodiversity with a stay in a jungle villa. Imagine waking up to the sounds of exotic birds and embarking on daily adventures into the rainforest.

Beyond the Walls: Services and Amenities

Many Thailand villas come with a plethora of services and amenities, elevating your experience to new heights. Imagine indulging in private chef-prepared meals on your villa terrace, enjoying pampering spa treatments in the privacy of your room, or having a dedicated staff catering to your every need.

Planning Your Perfect Villa Escape

To ensure a seamless villa experience, consider these factors:

Location: Choose a location that aligns with your desired vacation style, whether it’s beachside relaxation, cultural immersion in a city, or an adventure into the wilderness.
Amenities: Prioritize the amenities that matter most to you, from private pools and in-villa spa services to fitness facilities or chef services.
Guest Capacity: Consider the number of guests traveling with you to select a villa with the appropriate number of bedrooms and living spaces.

Embrace Unforgettable Memories

A Thailand villa vacation promises an unforgettable experience. Imagine creating lasting memories with loved ones, from poolside barbecues under starlit skies to exploring hidden coves accessible only by private boat. Thailand’s villas offer a sanctuary for relaxation, rejuvenation, and creating cherished moments that will forever be etched in your memory.

So, are you ready to trade the ordinary for the extraordinary? Start planning your Thailand villa escape and unlock a world of unparalleled luxury, privacy, and unforgettable experiences in the Land of Smiles.

Property

Property Leasehold in Thailand

Post author By siamlegalpattaya
Post date April 12, 2024
No Comments on Property Leasehold in Thailand

Property Leasehold in Thailand. Thailand’s property market beckons with stunning beachfront condos and luxurious villas. But for foreigners, the concept of property ownership can be deceiving. Unlike freehold ownership common in many Western countries, Thailand primarily offers leasehold property. Understanding this system is crucial before investing.

What is Leasehold Property?

In a leasehold agreement, you purchase the right to occupy and use a property for a predetermined period, typically 30 years. The land itself remains owned by the lessor, often a Thai developer or individual. Leasehold is the most common option for foreign property ownership in Thailand.

Pros and Cons of Leasehold

Pros:

Affordability: Leasehold properties are generally cheaper than freehold alternatives in desirable locations.
Wider Selection: Leasehold opens doors to a broader range of properties, including condominiums and villas, which are typically built on leased land.
Lower Maintenance: Many leasehold properties come with built-in maintenance services, reducing your burden.

Cons:

Limited Ownership: You don’t own the land, just the right to use it for a specific period.
Renewal Challenges: Renewing the lease at the end of the term can be expensive and uncertain. Negotiations with the lessor or a management company are necessary.
Value Depreciation: As the lease term nears its end, the property’s value may decrease.

Alternatives to Consider

While leasehold is prevalent, foreigners have a few limited options for a more permanent stake in Thai property:

Condominium Ownership: Foreigners can own freehold units within a leasehold condominium project, though ownership limitations might exist.
Thai Company Ownership: Setting up a Thai company allows for freehold land ownership, but this approach comes with complexities and legal fees.

Making an Informed Decision

Choosing between leasehold and alternative options depends on your goals and investment horizon:

Short-term investment: Leasehold might be suitable if you plan to use the property for a limited period.
Long-term investment: Exploring alternative options like freehold condominiums or company structures might be wiser for a lasting investment.

Seeking Professional Advice

Consulting a qualified Thai property lawyer is crucial. They can:

Explain Lease Agreement Details: Unveiling potential renewal terms, fees, and limitations within your specific lease.
Explore Alternative Options: Guiding you through the complexities of freehold condominiums or company ownership.
Navigate Negotiations: Assisting with lease renewal negotiations or navigating legalities of alternative ownership structures.

Thailand’s property market beckons with stunning beachfront condos and luxurious villas. But for foreigners, the concept of property ownership can be deceiving. Unlike freehold ownership common in many Western countries, Thailand primarily offers leasehold property. Understanding this system is crucial before investing.

What is Leasehold Property?

Pros and Cons of Leasehold

Pros:

Affordability: Leasehold properties are generally cheaper than freehold alternatives in desirable locations.
Wider Selection: Leasehold opens doors to a broader range of properties, including condominiums and villas, which are typically built on leased land.
Lower Maintenance: Many leasehold properties come with built-in maintenance services, reducing your burden.

Cons:

Limited Ownership: You don’t own the land, just the right to use it for a specific period.
Renewal Challenges: Renewing the lease at the end of the term can be expensive and uncertain. Negotiations with the lessor or a management company are necessary.
Value Depreciation: As the lease term nears its end, the property’s value may decrease.

Alternatives to Consider

While leasehold is prevalent, foreigners have a few limited options for a more permanent stake in Thai property:

Condominium Ownership: Foreigners can own freehold units within a leasehold condominium project, though ownership limitations might exist.
Thai Company Ownership: Setting up a Thai company allows for freehold land ownership, but this approach comes with complexities and legal fees.

Making an Informed Decision

Choosing between leasehold and alternative options depends on your goals and investment horizon:

Short-term investment: Leasehold might be suitable if you plan to use the property for a limited period.
Long-term investment: Exploring alternative options like freehold condominiums or company structures might be wiser for a lasting investment.

Seeking Professional Advice

Consulting a qualified Thai property lawyer is crucial. They can:

Explain Lease Agreement Details: Unveiling potential renewal terms, fees, and limitations within your specific lease.
Explore Alternative Options: Guiding you through the complexities of freehold condominiums or company ownership.
Navigate Negotiations: Assisting with lease renewal negotiations or navigating legalities of alternative ownership structures.

Unveiling the intricacies of Thailand’s property market can be like exploring a hidden paradise. By understanding the leasehold system and its alternatives, you can make an informed decision that aligns perfectly with your investment goals. Remember, consulting a professional ensures a smooth and secure property journey in the Land of Smiles.

Property

Thailand Property Market

Thailand Property Market. The Thailand property market has consistently drawn local and foreign investors due to its diversity, investment potential, and desirable locations. It’s imperative to comprehend the real estate trends in the Land of Smiles as we approach a new era. This blog post highlights Thailand’s property market, featuring trends, investment destinations, and factors.

I. Urbanization and Hotspots

Thailand’s metropolitan cities, especially Bangkok, remain real estate hubs. The capital city’s tremendous growth is fuelling residential and commercial property demand. Bangna, Rama IX, and Ratchada are growing, offering smart investors attractive chances.

II. Sustainable and eco-friendly growth

Thai real estate developers are adopting eco-friendly practices as the world prioritizes sustainability. Developers are using green technologies, energy-efficient designs, and sustainable materials. Green shoppers are increasingly looking for eco-friendly homes.

III. Condominium Living: Big Trend

In urban Thailand, condominiums prevail. They are popular due to their convenience, modern amenities, and shared facilities including pools, gyms, and communal areas. The trend is projected to continue as urbanization increases.

IV. Rising Rental Market

Thai rentals are growing due to urbanization, a transient expat population, and a penchant for flexible living options. Investors are taking advantage of this trend by buying rental properties in popular cities and tourist destinations.

V. Foreign Investor Interest and Legal Issues

Thailand’s advantageous foreign ownership guidelines attract foreign investment. The possibility for foreigners to acquire condominium units within quotas has made Thailand a popular property investment destination. Foreign investors must overcome legal procedures and seek expert guidance to comply with local rules.

VI. Lifestyle and Luxury Changes

Thailand’s luxury lifestyle appeal has led to the development of luxury hotels and resorts. Phuket, Koh Samui, and Chiang Mai attract wealthy people seeking luxury living. Private estates, villas, and exclusive communities are popular.

VII. Real Estate Technology Integration

Thai property has evolved due to innovation. Developers are using smart house technologies, virtual tours, and digital marketing to improve buyer experiences. Modern technology is changing how properties are marketed and experienced by buyers.

VIII. Conclusion: Thailand Property Market Navigation

The adaptable and resilient Thai property market continues to provide investors and purchasers a variety of options. Navigating this changing market requires being abreast of trends, comprehending legal issues, and doing rigorous due diligence. Investors can maximize Thailand’s property potential and ensure a successful real estate career with careful planning and skilled coaching.

Property

Thai Will and Succession

You know that in Thailand, heirs inherit property. A well-written Last Will is the greatest method to ensure your desires are followed and minimize family disputes after death.

A well-written Will can save your family time and stress. Your succession will depend on it.

A legal requirement

After you die in Thailand, a statutory heir must go through various steps to inherit. This is especially true if your assets are in a Thai corporation in foreign names.

A Will ensures that your property goes to your chosen beneficiaries after death. It protects against unwarranted legal bills and court charges.

You must write or type a Will in front of two competent witnesses (not pals). Date it, offer explicit instructions, and describe your estate distribution desires. Drafting a Will in Thailand is inexpensive and can save your family time, stress, and money. It also transfers your property to a Thai Inheritance Law-compliant statutory heir.

Intestacy

Thai law distributes estate assets when you die intestate without a Will or formal succession declaration. Starting with your next of kin, the heirs will be chosen. Intestacy, without a Will, will not consider your unique wants or needs, such as special provisions for disabled loved ones. Illegitimate family members and children born after the deceased may not be covered by the laws. If the dead was married or had children with other relationships, it can be complex.

Asset Distribution

Foreigners dying in Thailand without Wills must have their estates managed. This entails filing a petition with the court with territorial authority over the decedent’s residence at death. The petition must include a death certificate, relatives, legit heir birth certificates, and assets.

The executor should receive the will and any estate-related documents. The executor will notify the estate beneficiaries of their claim to a portion.

A spouse gets half of marital property. Other statutory heirs receive the remainder. Wills are crucial here. A Will lets a person pick Legal Heirs and Guardians for small children. Wills can also make gifts or legacies.

Probate

Thai probate lawyers wind up estates and notify institutions, banks, government organizations, etc. after a Thai death. The executor must also collect and manage the deceased’s assets and property, pay bills and taxes, and distribute the remaining assets and property according to the will.

Joint ownership with a Thai citizen or usufruct transfer are the greatest ways for foreigners to avoid probate. However, legal restrictions and court charges may apply.

Before heirs can inherit, the court or will must appoint an estate administrator to protect, distribute, and manage estate assets. The administrator must then update the heirs on estate progress. The law recognizes six types of heirs: descendants, parents, full-blood and half-blood siblings, grandparents, uncles, and aunts.

Tags property, thailand, will, will and succession

Property

Property Taxes in Thailand

Post author By siamlegalpattaya
Post date May 25, 2023
No Comments on Property Taxes in Thailand

Property taxes in Thailand. Thailand has long been a popular real estate investment location. Thai investors and residents have to understand property taxes. We will go over Thai property taxes, including classifications, rates, and owner considerations, in this article.

Thailand imposes a lot property taxes, each with a distinctive purpose. Thailand’s main real estate taxes are:

a) Land and Building Tax: The 2019 Land and Building Tax Act superseded the House and Land Tax. This tax applies to residential, commercial, agricultural, and industrial land and structures. Type, location, and use of land and buildings affect tax rates.

b) Local Development Tax: This tax finances local infrastructure campaigns. Different municipalities and provinces base tax rates on land value.

c) Specific Business Tax: Selling a property within five years may incur a tax. The tax rate is 3.3% of the appraised value or transaction price, whichever is higher.

d) Stamp Duty: Stamp Duty is a percentage of the registered value or the actual transaction price, whichever is larger, for property transfers. Residential or commercial real estate and individual or business purchasers affect the rate.

Thailand’s land and building tax rates depend on land use, location, and property type. As of writing, residential property tax rates are:

0.5% of appraised value: unused land
Land for agriculture: 0.01%–0.1% of appraised value
Residential buildings and land: 0.03%–0.30% of evaluated value
Commercial buildings and land: 0.3%–1.2% of appraised value

Key Considerations:

a) Tax Assessment: Thai property owners must declare their property values to local authorities every four years. It’s important to estimate accurately because underestimating can lead to fines and overestimating can increase tax liability.

b) Payment Deadlines: Thai property taxes are due annually. Avoid penalties and fees by knowing payment dates.

c) Tax Exemptions and Reductions: Agricultural and charity properties may be exempt from taxes. To understand exemptions and reductions, consult a tax professional or local authorities.

d) Tax Planning and Professional Assistance: Thai property taxes are complicated, so tax advisors or real estate lawyers can help. They advise on tax planning and compliance.

Conclusion: Thailand’s property tax system may seem complicated, but property owners may navigate it by learning the many taxes, rates, and considerations. Staying educated, getting expert assistance, and complying with tax duties will help property investors and homeowners manage their tax liabilities and make smart real estate investment decisions in Thailand.

Property

Property Due Diligence in Thailand

Post author By siamlegalpattaya
Post date May 5, 2023
No Comments on Property Due Diligence in Thailand

Conducting property due diligence is an essential part of any real estate deal, regardless of whether it’s in Thailand or not. As part of due diligence, a property’s ownership, legal status, and possible liabilities or issues are investigated thoroughly.

Be mindful of the following when conducting due diligence on Thai real estate:

Make sure the vendor has a valid title deed by checking it with the appropriate authorities. Title deeds are important legal documents since they prove who owns the land. It is important to consult a lawyer in Thailand to ascertain the most appropriate title deed for your transaction, as there are several types.
Check for encumbrances to make sure the property is free of any claims, such as liens or mortgages. You can accomplish this by reviewing the deed and conducting a search at the local land office.
Check the zoning and land use regulations to make sure the property is zoned for what you want it for and that there aren’t any restrictions that would make it impossible.
By reviewing the building codes and permits, you can ensure that the property has obtained all necessary clearances and permissions for any current or future construction. This encompasses all necessary approvals, including environmental permits and building permits.
The first step is to do a site examination, which entails physically visiting the land and checking the condition of any structures there. Checking for damage or defects and identifying possible threats are all part of this process.
Get a lawyer’s opinion on all of the contracts and legal papers that pertain to the property, such as the lease, purchase agreement, and any others.
Ask experts for advice: Professionals like engineers or architects should be consulted to verify any technical aspects of the property, including its structural soundness or environmental considerations.

Property due diligence in Thailand can be a complicated process, so it’s advisable to work with a lawyer or other real estate professionals to ensure all important components are evaluated thoroughly.

Tags property, thailand

Property

Sales Contract Review in Thailand

Post author By siamlegalpattaya
Post date February 7, 2023
No Comments on Sales Contract Review in Thailand

It takes a lot of money to buy a house or other piece of land. This is why, before signing, you should carefully review the deal. An attorney can check your contract for legality and fairness to make sure it complies with all regulations. You can avoid squandering funds or making a careless decision that could cause problems down the road if you do this.

Misunderstandings, fraud, and other complications abound in the complicated Thai real estate buying process. Having a contract lawyer in Thailand examine the purchase and sale agreement before you sign it is a good approach to avoid these problems.

A sales contract review is an absolute must in Thailand prior to the signature of any buy or sale agreement. Doing so will safeguard you from any vague language that could lead to a lawsuit down the road and guarantee that you are receiving a fair price.

In the event that you discover any unexpected expenses or other issues with the contract, a professional can assist you in negotiating the required modifications. With this in place, you can rest assured that you will have no trouble acquiring the house of your dreams.

If the acquisition deal includes a title deed or an environmental permit, for example, it is wise to have a Thai lawyer go over those as well. If you do this, you can be confident the property you’re buying is legal and suitable for human habitation.

The lawyer preparing the contract has to keep both parties’ interests in mind. Buyers and sellers in Thailand should familiarize themselves with their respective rights and responsibilities before signing a sale and purchase contract, as these documents usually only cover the most fundamental aspects of the transaction.

A skilled attorney can examine the contract in great detail to ensure that all provisions are transparent, equitable, and free of ambiguity. For your peace of mind before signing the deal, they can also give you a rundown of any potential hidden fees or penalties.

If a company values its interests and wants to stay on the right side of the law, it needs this service. It’s a great approach to make sure you’re getting the most out of your investment and to stay clear of any legal grey areas.

Both domestic and international purchasers should take the time to carefully examine the sales contract. Hiring an expert can help clear up any confusion, lessen the seller’s responsibility, and fortify your position in the event of a future disagreement.

If you want to know if the property has the necessary licenses and permissions and if it qualifies for any government assistance, a qualified lawyer can assist you with that. You can use this information to determine if the purchase is worthwhile and if you should proceed with it.

One must not underestimate the significance of reviewing sales contracts. An integral aspect of buying property in Thailand, it can help you save both time and money down the road. Having a lawyer look over your contract could be pricey, but it’s money well spent.

Tags sales contract review, thailand

Property

Process of Property Title Transfer in Thailand

Post author By siamlegalpattaya
Post date February 7, 2023
No Comments on Process of Property Title Transfer in Thailand

When you are looking to purchase a home, condo, villa or apartment in Thailand, it is important that you know the process of property title transfer. This will help you avoid any potential legal pitfalls.

The first step in the process is to find a real estate lawyer who will be able to provide you with reputable advice and protect your interests during the buying process. Having a lawyer with you in the purchase of your Thai property will give you peace of mind and ensure that you are protected from any unexpected issues and possible legal risks.

A lawyer can assist you with all the aspects of a property purchase including; reviewing and approving your contract, ensuring that the property is not subject to any government regulations or restrictions and making sure that you are aware of all the requirements prior to purchasing your Thai property. Having a Thailand lawyer by your side will also make the buying process much smoother and easier for you, which is why you should always seek out this professional assistance before committing to a purchase of any sort.

Once the property has been bought, you will then need to prepare a few documents to transfer the ownership of the property into your name. The most common of these is a Land Title Deed, but there are other types of title deeds that you can choose from.

You will also need to have a valid foreign exchange transaction certificate and a Foreigners’ Land Rights Certificate issued by the local land office before the property can be transferred to your name. These documents are required for any purchase of a condominium in Thailand.

After obtaining all of the necessary documents, you will then need to take them to your local land office and register the property into your name. This is a legal procedure that can only be performed by the local land office and not by any other government agency.

The Land Department is a government agency that handles all of the issues related to real estate in Thailand. They are responsible for the registration of property, issuing title deeds and regulating the land topography.

It is very important that the correct documentation is presented to the Land Department and all of the relevant information is correctly submitted. Failure to do so may lead to costly delays and even a refusal of registration of the property.

When you are ready to proceed with the transfer of your property, you will then need to present the following documents:

– Land Title Deed (Land Certificate) – this is the most common document used for real estate transactions in Thailand. It is a clear and secure document that will show who owns the land.

The land deed will have the title holder’s name and address on it as well as any previous owners who are still named in the deed. This will be a valuable piece of paper for you to keep as it will serve as a reference for all your future real estate transactions in Thailand.

Tags property, thailand, title transfer

Property

Buying Off-Plan Properties in Thailand

Post author By siamlegalpattaya
Post date October 9, 2018
No Comments on Buying Off-Plan Properties in Thailand

When venturing into any form of investment, risks are always involved. These pitfalls may exist like booby traps, just lying and waiting for an unsuspecting individual to fall or they simply reveal themselves as the project progresses.

Off-plan properties are not exempted from these risks and in view of this type of property investment, there are at least three sides that must be looked into: the side of the developer, the one who is against it for whatever reasons he may have and the vulnerable one, and that is you.

But, let us set aside your vulnerability in an off-plan property investment because on this article, you will be sitting as the judge and you will weigh the arguments that the developer (the accused) and the contra off-plan property purchase (the accuser) will present unto you.

So, let us begin with the examination of both concrete and circumstantial evidences.

The Developer

Off-plan property acquisition offers discounted prices for the yet to be built units. You will also be given the freedom to select the best units possible and to add with those are the other incentives that the developer will offer you as an off-plan buyer.

For the developer, there is no problem if you only have catalogs, 3D model units and advertisements as your basis for purchasing off-plan. It can guarantee with vigor that whatever you see on these marketing tools will be exactly the same with a completely built one in the future.

The Contra Off-Plan Property Purchase

This person discourages you to purchase off-plan properties because of the risks involved. First, you will already begin payment even if the development is yet to be started or has yet to be finished. He will supplement this with an argument that there is always a possibility that the developer will run out of finances to finish the project.

Another contention of his is the concern on quality of workmanship and materials that will be used will not be the same with those on the advertisements.

And lastly, he attacks the character of the developer by questioning its credentials, financial capacity and overall stature in taking on such project.

The Judge

You find both positions to be valid. You think that there is nothing wrong if the developer will start collecting payments from you even if the project is yet to be started but you also find credence to the argument of the opposition that there is always a risk that the development will not be finished and thereby leaving you hanging.

You also believe the possibility that the developer will not be able to build the property according to the schematics they presented earlier. You think that the 3D model units will not be the same with the actual units once finished. But, as what is said earlier, you only “believe” this possibility and you do not have the factual basis yet for such belief.

In other words, you find it hard to decide which side of argument you will take into consideration and so the best thing for you to do is to have an independent consultation on the matter by doing the standard practice of Due Diligence and a background check on the developer.

Due Diligence – This will allow you to check the authenticity of the documents, especially the type of title deed. Due diligence can also help you check the background of the title or property whether it is not subject to any litigations. It will also uncover if the development is allowed on such particular area base on its land classification.
Developer Background Check – Your questions about the financial capacity and reputation of the developer will be answered if you will conduct a background check. After gaining pertinent information about the developer, you may now decide whether it is worth your trust and your advance payments or not.

Need Help?

With your limited knowledge on Thai property investment processes, culture and laws, of course you do need help. For proper execution of due diligence and background check on the developer, you need to enlist the services of a reputable registered Thai property lawyer.

The Thai lawyer can access court records for possible litigations involving the title, developer or property agent. He can also do efficient investigations whether the type of development is allowed on the particular area and on the overall status of the developer.