If you are buying property in Phuket then consider the importance of having a due diligence done on the property before you sign on the dotted line. There have been a number of scams which have been run in Thailand over the years the famous one being where a developer built property on government land and all the foreigners who bought property lost their investment.
Always ensure that you have a property lawyer in Phuket check the property for you or you could very well face the prospect of a lost investment or retirement fund payout.
There are a number of property issues which need to be checked:
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The property needs a visual inspection. Buying property off from the internet and then going out to look at it does not help when the plans don't match the property or you are looking at the wrong house. Property litigation in Thailand is costly and normally takes a few years before it gets settled. Viewing who lives next to you is also very important. You don't want to be living next to a disco or a slaughter house.
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A Title Search needs to be done to ensure that the person you are speaking to is the legal owner of the property. It also allows the lawyer to check for any servitudes or usufructs and mortgage bonds against the property. It also tells you what type of title deed the property is on as there are a number of title deeds in Thailand. Some title deeds are very limiting. This is very important as this is where most people will have to right off their investment if it goes wrong.
- If it is a new development the lawyer has to check to ensure that all the developers documents are correct with regards to drainage and zoning. There also has to be an Initial Environmental Examination (IEE) report which the developer should have. The construction permits needs to be checked and if the building complies with the law such as the parking space law. There needs to be a minimum amount of parking spaces for the number of units.
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The developer also needs to be checked to ensure that there are no court cases pending which might holdup the development of the property. In 1997 there had been many issues and there are still large amounts of building projects in Thailand that have never been completed to this day.
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Check the plans with what is being sold. It the room is 10 meters wide is that the internal measurement or the external measurement of the room? All of these issues need to be checked before you buy as the legal recourse is costly and will not do you any good later. Check the property first before you sign!
If you are looking at property in Phuket then now is the time to ask our property lawyers in Phuket to do a study on the property which you want to buy. There is no better time to buy in Phuket than now as the Euro crisis is a boon for better property prices on Phuket Island.
With offices in all the main cities of Thailand - we will best be able to serve you. Give us a call!