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3 Common Property Legal Services When Buying Property in Thailand

Oct 23

When purchasing property in Thailand, there are three common legal services you should consider. These are Contract Review, Property Due Diligence, and Property Transfer. Using these services will ensure that you're getting the best deal possible. While these services may seem expensive, they're worth it for the peace of mind they can give you.

Property Due Diligence in Thailand

Property due diligence is the process of investigating the legitimacy of a property before you make the purchase. It involves an extensive legal search and document review. It also involves examining the physical property, including infrastructure, sewage system, telephone system, and more. It can protect you from scammers. It is also essential to make sure that the property's owners are legitimate.

As part of the process of conducting due diligence in Thailand, you will need to check out any legal issues with the property and its owner. This includes checking the property's legal status, whether the owner is reliable, and whether there are any liens against it. In addition, due diligence will also require checking out the seller's background.

Property due diligence in Thailand should also include a thorough document review. It includes examining the property's registered value, its title deed, and its infrastructure. This will allow you to make sure that the property is legitimate and safe for your investment. You should also ensure that the title deed is protected from encumbrances or mortgages.

Contract Review in Thailand

If you are considering purchasing a property in Thailand, it is advisable to get a Contract Review. This is necessary to make sure that the terms and conditions of the contract are clear and understandable. It will also help you decide on the ownership structure. Although real estate contracts in Thailand generally do not have exhaustive clauses, it is important to have a contract review to avoid any misunderstandings in the future.

A contract review is an important part of the due diligence process, as it can strengthen your position and reduce your liability and ensure that you get the best deal possible. Many real estate contracts are poorly drafted, which can lead to disputes in the future. Having an expert review the contract is a wise choice.

Property Transfer in Thailand

Buying and selling property in Thailand involves a variety of taxes and fees. Some are assigned to a particular party, while others are split among the parties. The taxes paid are: the transfer tax, which is 2% of the property's assessed value, the withholding tax (1% of the appraised value), and the stamp duty, which is 0.5% of the registered value.

The sale and purchase agreement is a legal document that is essential to the transfer of ownership. A building permit is also a necessary document. Moreover, a Superficies is a right granted by the landowner to another party for a fixed period not exceeding 30 years or for life. To be able to transfer ownership of a property in Thailand, it's important to know all the legal requirements.

A title search is vital when buying property in Thailand. You should know the different types of Thai title deeds to ensure that you're purchasing the right property. It's also necessary to learn about the various taxes that apply. The last thing you'd want is to end up paying for property that turns out to be worthless. Property fraud is common in Thailand, and you should be aware of all applicable laws before making any final decisions.