Before you purchase real property in Thailand, you need to understand the steps that ensure title possession. Therefore, the idea behind a title search is to ensure that you retain title to a property and that the transaction is legal and legitimate.
The following information will assist you in buying a property that is free and clear of any liens or encumbrances.
The Title Search
Before you can buy a property, you should learn its history. That means having a title search is essential because it uncovers past problems disputing ownership and some documents that will not allow you to buy or lease the property. That is why you need to find out if your title can be transferred.
Doing Your Due Diligence
To obtain additional details about the real property you want to buy, due diligence should also be performed. For example, this type of process should be done for new construction. By doing due diligence, the property developer can determine what permits are needed to proceed. Also, due diligence permits you to review local court records to see if the seller for a property has been in trouble for default or ever declared bankruptcy. If the seller has declared bankruptcy in the past, it may cause a problem with the title transfer.
In Thailand, the seller gives the buyer a contract of sale for review after the seller places a deposit on the real property. The contract may be worded in English or Thai. If you want to legitimize your real estate transaction, you need to have your attorney review the terms of the contract for sale.
While a title deed describes a buyer’s rights of ownership, a contract for sale describes what is involved in the sale.
Transfer of Property Title
The land office in Thailand handles the transfer of title. If you own real property from a property developer, and the property is not yet built, the title transfer will occur after the building is built. If the property is ready to move in, the transfer of title occurs after the payment of fees and the signing of the associated paperwork.
Your real estate agreement should detail what taxes should be paid. Make sure you go over this section with an attorney.
If you need the assistance of a Thai corporate lawyer, please feel free to contact us.