There are a few common problems when buying property in Thailand. We have listed a few of them that we have noticed over the years when foreigners buy real estate and what they found to be a problem. These are the most common problems.
Many smaller developers give commissions to staff to help sell the property. They in turn will get friends and family to also help them get a commission. This is normally where most problems start as what is discussed is not with the official agent of the developer and they cannot bind the developer legally to any of the changes you would want. What you sign in the end being in Thai may not include all that has been discussed. Always speak to the developer directly or to their official agent.
Always check with an attorney first before you ever give a deposit on a property development. There are not trust accounts in Thailand and hence no insurance if the attorney decides to run off with your money next week. Always try to use a large developer, large law firm and speak to them about an escrow account for the money to deposited in. Most investments are lost when the developer uses you deposit to build the property or to run more marketing. This is how many have lost their investments.
The language barrier is a major issue and contracts are all in Thai. sometimes the translation of the Thai to English is not very good and this can and normally does give rise to problems and misunderstandings. The courts can only enforce what is in the written document and not what you had agreed on in person. Ensure that the language barrier can be crossed by using a large law firm to look at the contracts and to ensure that there are 2 contracts. English and Thai and that both are signed. Many of the large developers use mainly English as their customer base is international.
Before you buy any property always ensure that you have had a law firm do a due diligence on the property. This will investigate the developer, project status, permits, servitudes, usufructs, funding and the planning of the project. You should never buy any property without having a due diligence done on the property and the developer.
If you need more advice and assistance then speak to us today!