A phased plan for buying property in Phuket’s primary market.
1. Search for suitable options.
2. Booking the selected property.
3. Due diligence of documents from the developer.
4. Coordination of the contract of sale and payments schedule.
5. The signing of the sale and purchase agreement.
6. Payment according to the installment plan of payments.
7. Transfer facility.
8. Elimination of deficiencies, if any.
9. Final settlement.
10. Payment of taxes and state fees.
11. Registration of the property in the name of the buyer.
12. Transfer of keys.
A phased plan for buying in the secondary real estate market of Phuket.
1. Search for a suitable property.
2. Appeal to a law firm.
3. Booking the selected property.
4. Verification of documents by a lawyer for the presence of encumbrances.
5. Drawing up a sale and purchase agreement.
6. Opening a bank account in Thailand to complete a transaction (it is possible to use the account of the seller or a law firm).
7. Transfer of money to Thailand under the sale and purchase agreement.
8. Issuance of the FETF form confirming the transfer of money for the purchase of real estate from abroad.
9. Order a bank check to pay by the agreement.
10. Visit the land department to conduct the transaction.
11. Payment of taxes and state fees.
12. Transfer of ownership to the buyer.
13. Transfer of keys.
Why do we need a law firm when buying property in Phuket? What is the price of legal services?
In order not to worry about the legal purity of the transaction for the purchase and sale of real estate and to avoid risks - you will need a help of a specialist who is well versed in Thailand law. The law firm can check the documents and the company for the presence of encumbrances, the legality of construction, check the documents for the land on which the construction is planned. A competent lawyer will help to draw up the purchase and sale agreement or check the existing contract, to prepare all the necessary documents for the transaction, to help with the re-registration of property rights and the safe transfer of money. The price of legal services for conducting transactions with the same set of documents in different firms could be different several times. Usually, the transaction price starts from 40,000 baht.
How to protect yourself when making transactions on the sale of real estate in Phuket.
Doesn't matter how well you had studied the market and legal aspects before conducting a transaction, if this transaction is the first for you - it will be difficult for you to take into account all the nuances. In order to protect yourself and be confident in the correctness of the choice - it is better to turn to market professionals, namely to a real estate agency or agent. The agent will help you navigate the situation on the market and choose the best offer based on the purchase goals. In the same time agency or agent has a big experience in this kind of transaction and will help you to avoid risks.
How to choose an agency or agent?
In Phuket, a huge number of agencies and real estate agents, many of them come to work to Phuket for one the season only and never come back, such agents, and agencies are unlikely to be able to help you competently conduct a deal. It is better to apply to companies that value their reputation and work in Phuket for several years. How to find out how long the agency or agent works in the market? Here you can help social networks. All agencies in Phuket have their own pages in social networks, through which it is not difficult to trace the history of the company and the time of its presence in the market. In the same place you will find reviews of real people about the work of the company and based on this information you will be able to make the right choice. Also, every serious agency, of course, should have its own website. You can assess the agency by the quality of content on the site and the availability of articles on real estate in Thailand. Also on the site is placed the real estate base of the agency, so that you can navigate the price for property.
The list of documents that must be provided by the developer.
At your request, the developer must show you the constituent documents of the company and the documents for the land plot where construction is planned. The best option when the owner of the land is the developer himself. It is not worth investing in a project whose landowner is a company or an individual who has no relation to the project, such investments can be fraught with serious risks. It is worth investing your money in such projects only with the participation of a good lawyer in the deal.
For the construction of villas or low-rise buildings, no special permits and approvals are required. Here everything is quite simple. It is important to carefully check the land in the land department for the presence of encumbrances and the possibility of building on it (some forms of land ownership prohibit the construction of any structures).
In the case of the construction of a condominium, the developer must obtain a number of permits, without which construction is impossible. In particular, the Environment Impact Assesment (EIA) approval. Obtaining this permission can take a lot of time, and even entail significant changes in the project. There are several cases when obtaining this permit delayed the completion of construction by one to two years.
It is worth noting that apartments can be acquired in full ownership in an apartment building registered as a condominium. If there is no such registration in the building, apartments can only be purchased for long-term lease (Leasehold).
What is the due diligence of the property?
Due diligence is the legality check of the documents of ownership of the property and the absence of encumbrances on it. Copies of all documents on the property are stored in the land department. The law firm may contact the land department and verify the documents provided by the seller with those stored in the land department, confirm ownership rights, see encumbrances on the property if any. Under Thai law, such encumbrances as a bank loan secured by property or a long-term lease should be marked in the documents. Accordingly, to make the due diligence of the property, you just need to contact the law firm.
How to secure from the "undeveloped property" in Phuket?
"Undeveloped property" in Phuket, as a rule, occur due to lack of funding or problems with obtaining the necessary documents to start construction, in particular, EIA. How to ensure against the "undeveloped property"?
1. Despite the attractiveness of the offers at the pre-sale stage, it’s still better to buy the property after the developer has received the EIA permission. The exception is well-established developers, who have already implemented several projects in Phuket. For example, such as Laguna and Kata VIP.
2. Choose a company with a large capitalization and a good portfolio of projects already implemented in Thailand.
3. Another good option is to buy real estate in the secondary market. In this case, you will ensure yourself against the risks of “undeveloped property construction”, and will buy the ready to move in property, without unpleasant surprises which could appear after the end of construction.
4. Buy property during the construction phase in Phuket, when part of the project has already been built.
What happens to the payment already made under the contract in case of “undeveloped property”?
As a rule, the developer tries to settle everything in a pretrial order, and either fully return the money, or provide an equivalent real estate object in another project. If it is impossible to come to an agreement between the parties, the dispute of compensation is decided through the Court.
<< Назад
