Purchasing property in Thailand is not just about choosing a unit and signing a contract.
It is important to assess all risks, costs, and legal aspects of the transaction in advance.
1. Clarify All Costs
The property price is only part of the total expenses.
You should also consider:
- taxes and registration fees
- how these costs are allocated between the parties
- annual maintenance expenses
Contracts often include wording such as:
- “the buyer pays 50% of the registration fee”
- “the parties share the costs equally”
Such wording does not provide clarity on the actual amounts.
It is also important to estimate in advance:
- maintenance costs
- management company fees
- insurance
2. Conduct Due Diligence
Property verification is a key stage before the transaction.
For primary market:
- contract analysis
- verification of title documents
- assessment of the buyer’s rights
For secondary market:
- verification of foreign ownership quota
- absence of outstanding debts
- absence of encumbrances
- calculation of taxes and fees
- assessment of annual property tax
3. Conduct a Technical Inspection
Legal due diligence does not replace a technical inspection.
We recommend engaging a licensed specialist who can:
- identify defects
- assess the condition of the property
- estimate potential repair costs
Lawyers and agents do not perform this type of assessment.
4. Check Usage Restrictions
Each project may have its own rules.
It is important to clarify in advance:
- rental restrictions
- pet policies
- rules on renovation and alterations
5. Plan the Transfer of Funds
Even in leasehold transactions, the source of funds must be confirmed.
Important considerations:
- transfers must be made via bank transfer
- alternative methods (e.g., cryptocurrency) are not suitable
- funds are best transferred:
- to your own account in Thailand
- or to a lawyer’s account (escrow agent)
It is not recommended to transfer money directly to the seller without transaction control.
Conclusion
Proper preparation for a transaction allows you to:
- avoid unexpected costs
- minimize legal risks
- ensure correct registration of ownership rights
Author: Alexandra Agapitova.
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