Things to Consider When Buying Land in Thailand
Before buying land in Thailand, it is important to conduct due diligence and check contracts carefully. If possible, hire a property lawyer to review the contract and conduct a title search. This step will ensure that the seller is the rightful owner of the property. In addition, it is important to note the type of title deeds, which grant full rights over the land.
Importance of Property Due Diligence
Before buying a piece of land in Thailand, foreign buyers must conduct property due diligence. This involves examining the land title deed and assessing whether there are any issues preventing the property from being transferred to a foreign owner. Usually, a Thai lawyer will be the intermediary for the due diligence process. He or she will review the land deed and translate the title.
Buyers should also verify whether the land has a clear title deed and if it is registered. In addition, buyers must check whether any existing liens are against the property and whether any other people have a claim over the land. Moreover, they must inquire about any possible drainage issues, road access, and environmental disturbances. In addition, they should hire a reputable chartered surveyor to do a thorough land survey.
Proper property due diligence is essential to protect your investment. It involves a physical inspection of the property, reviewing government permits and liens, and conducting background checks on the seller or developer. This is especially important in Thailand because the land registration process is more complex here.
Legal Review of Property Contracts
It is important to get a Legal Review of Property Contracts when buying land or building projects in Thailand. In addition to reviewing the property contracts, the lawyers also review other agreements, such as condominium regulations and rental pool contracts. They also prepare for closings and ensure that the land department's Director-General has approved the contract.
It is important to verify the title deed for the land. This is commonly referred to as a Nor Sor 3 Gor (Chanot). If the land is not titled as such, it could have unregistered rights. Additionally, it is important to check whether neighboring plots have rights to the land. If the land is advertised as a profitable investment opportunity, triple-check its legal status. Otherwise, investors risk losing their entire investment due to illegal upgrading, zoning problems, or bogus land titles.
In Thailand, property contracts often contain provisions regarding legal identification documents and property titles. It is also customary to enter into a reservation agreement, where a deposit is paid to hold the property. This allows the parties time to conduct due diligence and negotiate a sale and purchase agreement. In case of non-purchase, the deposit is non-refundable.
Drafting Thai Last Will and Testament
You should never leave your Thai assets to chance. Many expats move to Thailand for its beauty, serenity, and freedom, but they forget to make a will. It can be hard to communicate with heirs and loved ones in another country, so it's crucial to write a will. A valid Thai Last Will and Testament is important for the protection of your Thai assets.
While there are some complexities involved with drafting a Thai Will, the legal process itself is straightforward. It outlines the distribution of your assets in Thailand, ensuring that your loved ones will get what they want. The package contains two versions, each with instructions on how to fill in the details. Once you have the basic format, you can customize it by filling in the blanks and editing the text.
If you have children or other dependents, draft a will to name them as "controllers" of your property. If you have minor children, it is a good idea to designate a guardian for your children so they are not left in the country without your assets. In addition, you should have a Thai attorney write the will for you.