Due diligence when purchasing property

[raynmon]

Hi there,

We love Hua Hin and we have decided to purchase a condo (at the right price) and we have inspected and short-listed a few.

I understand there are no requirements to be a real estate agent as well; no educational proficiency attainments, registration and code of ethics which makes it additionally important to do due proper diligence. And of course research on the project itself; the commons, the on-charge of utilities with margin (if not paid directly to govt) etc and the state of the balance sheet and constructual issues - I understand that this can be obtained while on a conditional contract however.

Unlike other countries which have extensive real estate sale data such as recent sales values, number of sales in an area, time on market, usual discount to asking price; there information seems sparse that I can find, at least for Hua Hin - please someone point me in the right direction if you know of some sources.

Thanks

[Big Boy]

It is very difficult to know who you can trust in Thailand. I have friends who had their contract drawn up by solicitors with a fantastic reputation. When it came to selling, it seems Thai law can drive a tank through their words. They took it to court, but the legal process can also be very slow here. Basically, they have been fleeced.

As I said on the other thread, doing something like this remotely is a recipe for disaster. What is the urgency? Why not wait until you get here? You can then go with your own gut feeling.

In my friends case, both real estate agent and solicitor had impeccable reputations. A clever Thai lawyer has scuppered all of that. Please be careful, many Thais love to get money for nothing. Property sales are slow here - I'm sure your dream home will wait for you. It could still go wrong if you're here, but less likely.

[404cameljockey]

Big Boy is spot on, buying property in many countries leaves you open to unscrupulous or just lazy people. Spain is another fair example. The laws have sometimes been ignored in previous purchases of a property already in private hands, leaving you open to the consequences later down the road.

You seem well versed in the main details of property ownership, communal charges, payment for services, etc.

Buying direct from a reputed developer with a good history is best if you have that option open to you, and buying through a reputed agent who will closely handle your purchase contracts/documents (European owned/staffed, if you feel more comfortable with that, and if they have a track record). after deciding on a property, I came to Thailand to oversee everything and checked the history and rumours of all I came across whom I might be interested in dealing with. It's not a full solution but it's a comfort.

I had planned some renovation/extension work before moving in, and accessed a British architect/builder (long established in Thailand and recommended by the agent with whom I already felt very comfortable after a lot of discussion) who has a lot of knowledge of local companies, including ones who had acted badly in the past. If you're on the ground you can chat to people like this. But there is also a British-owned building company here who I would steer well clear of. If you hire a car and stay in Thailand for 2-3 weeks it's a bit easier.

The vast majority of purchases don't go badly, but eyes open is always sensible.

Good luck for the future in lovely Hua Hin.

[migrant]

We bought our current house from someone without an agent. We took the deal and went to a lawyer to do the paperwork and due diligence. She completed it and we went to the land office. The land office took the paperwork and came back and said there was a outstanding lien on the property. The seller paid it off and all was fine but my point is the lawyer completely missed it. She is now my neighbor!!!

[Dannie Boy]

As has often been mentioned in situations like this, it is normally recommended that you first come to Hua Hin and take out a rental property while you search for your forever home. That way you can avoid making rushed decisions and be as confident as possible that you end up choosing the right property.