What is the role of a Thai Lawyer when buying properties in Thailand?
17th Apr, 2020
Table of Content
- Buying properties in Thailand Step 1: Due Diligence
- Buying properties in Thailand Step 2: Pay Deposit
- Buying properties in Thailand Step 3: Review and Sign Sales Agreement
- Buying properties in Thailand Step 4: Payment
- Buying properties in Thailand Step 5: Handover
- Buying properties in Thailand Step 6: Registration
There are a number of real estate projects which have built up a nice return on investment system. Some projects in Phuket can pay up to 7% net of your investment per year for 15 years, and these types of projects attract many investors from abroad.
After finding the property that suits you, before paying the deposit, we recommend you seek legal advice from a knowledgeable Thailand Lawyer prior to making any payment.
Buying properties in Thailand Step 1: Due Diligence
Firstly, the Thailand Lawyer will help you to do proper due diligence, especially if the seller is an individual person or a brand new developer.
To ensure your best interests are fully protected, this step is always worth doing.
Buying properties in Thailand Step 2: Pay Deposit
If the due diligence shows that the property you plan to buy fits all the criteria, you can sign the reservation agreement and pay the deposit to hold the property.
Buying properties in Thailand Step 3: Review and Sign Sales Agreement
Once the deposit is settled, usually your developer will send you the sales agreement to indicate payment terms. At this stage, it’s very critical to let your Thai lawyers go through the agreement between the seller and you to make sure there’s no hidden agenda, expenses or onerous terms. This step is very important, keep in mind not to blindly sign any agreement without legal advice in Thailand.
Meanwhile, your Thai lawyers should be able to advise you of all the details for the next steps. For instance, after signing the agreement, the seller needs to obtain the foreign quota certificate and the free debt certificate from the condominium juristic person, all these processes need to be conducted in the right way to make sure there will be no issues in the future.
The total time frame should be 30 – 45 days from the date of signing the Agreement to complete the entire process.
Buying properties in Thailand Step 4: Payment
Your Thai lawyer will also indicate how to make a proper transfer for your payment from abroad. Usually the developer will give you guidance as well, however, check again with the lawyer as it is safer since the Thai government makes strict requirements of the property transaction, you need to know how to follow in the correct way. For example, you need to instruct the bank that the purpose of the transfer is for “purchasing a property unit No., name of the project, i.e.”
Buying properties in Thailand Step 5: Handover
Once the project is complete, the Purchaser shall make an appointment, present and complete the inspection with the Seller within 30 days following the full payment receipt by the Purchaser.
In the event that the Purchaser, after satisfying that the construction of the Leasehold Unit has been completed, the Parties shall make appointment for the Hand Over Date.
Buying properties in Thailand Step 6: Registration
When the Purchaser has completed all payments regarding the Price, the Purchaser shall execute and register the Condominium Unit Lease Agreement against the Leasehold Unit with the Competent Authority for the Purchaser’s lease right.
The Seller, within 60 (sixty) days following the Establishment Date, shall notify the Purchaser the exact date to go to the Land Office for registering the Condominium Unit Lease Agreement. If the Purchaser is unable to register the lease right on the Closing Date by actual presence, the Purchaser shall appoint an attorney to carry out the registration with the Seller or its representative within the Closing Date.
To summarize, getting a proper lawyer for legal services in Thailand, or Phuket, for your property purchase is the key to safeguarding your purchase.
Harwell Legal International Co. Ltd. is Thailand’s Premier International Law Firm in Phuket. We offer comprehensive legal services to foreign and local clients.
If you want to know more about buying properties in Thailand, please check out this article: https://www.harwell-legal.com/real-estate/what-you-need-to-know-about-buying-property-in-thailand/