Property Legal Services for Foreigners Buying Property in Thailand
As a foreigner, you are eligible for zero property taxes in Thailand. This means that you won't have to pay house or land taxes, although the owner of a building will have to pay property taxes. In addition, if you purchase a condo or house, you should set up an escrow account for any taxes.
Property Due Diligence
Due diligence is a vital part of buying a property in Thailand, especially if you're a foreigner. Before you buy a property, you need to find out about its legal status and whether it's worth the price it's being sold for. You can do this by surveying the property and adding the relevant information to your due diligence report. For example, you should check if the land is registered in the land office and whether it's in the right location.
Due diligence involves checking the history of a property, checking the position and status of the current owner, and examining the property's title. Unfortunately, scams abound everywhere and you need to be extra careful when buying property in Thailand. Fortunately, there are firms that specialize in conducting Property Due Diligence for foreigners buying Thailand property.
Review of Property Contract
For foreigners interested in purchasing property in Thailand, it is vital to have a legal professional review the contract. This can help to clarify any loopholes and protect the buyer's interests. Many property contracts have unclear legal terms and conditions. A property lawyer can help to clarify these issues and ensure that the contract is enforceable by Thai law. Furthermore, a lawyer can assist in contract translation if necessary.
The first step in reviewing a contract is to determine what it covers and what it entails. Often, people get confused between the sales contract and title deed. While the former reveals the actual ownership of the property, the latter explains the terms and conditions of the transaction. In addition, it specifies who will own the property. As such, a basic contract review will focus on the agreement's structure and will highlight any clauses or provisions that could affect the purchase of a property.
The contract is a binding agreement between the buyer and seller. It contains important details such as the price and deposit, the transfer of ownership, and how taxes will be shared. A contract will usually ask for the buyer to make a first'reservation' deposit, which is often up to 30% of the purchase price. This deposit is generally non-refundable.
Hiring a Property Lawyer in Thailand
Hiring a Property Lawyer in Thailand for foreigners buying property in Thailand is essential to protect your interests and avoid scams during the buying process. As a foreigner, you are probably unfamiliar with Thai property laws and may not want to risk getting cheated in this process.
Although hiring a property lawyer is not legally required, it is strongly recommended. Without legal help, you may encounter unnecessary complications, delays, and accidental legal issues that can jeopardize your financial investment. The real estate laws in Thailand are complicated, and a lawyer can help ensure a smooth transaction.
A lawyer can also keep you informed about the property you are interested in. A Thai property lawyer will conduct a title deed search and do due diligence on your prospective property. You need to have a good idea of the property's background, ownership, and current status, so a property lawyer in Bangkok is an invaluable tool.