10 Steps to Buying Property in Phuket
For the prepared, buying a property in Phuket can be extremely rewarding. These 10 steps to buying property in Phuket are meant to guide you thru the purchasing process. A knowledge of the steps allows you to make informed choices that meet your own objectives and your own needs.
1) Determine the purpose of investment and exit strategy 2) Conduct preliminary research 10 Steps for Buying Property by Rodney Waller 3) Appoint a lawyer 4) Property search and viewings 5) Shortlist and choose property 6) Make offers and negotiate 7) Reservations and deposits 8) Due diligence 9) Completion 10) Possession
1) Determine the purpose of the investment and the exit strategy should always be the starting point because the answers influence the majority of subsequent decisions related to the purchase of property, including what to buy, where to buy and how to structure the purchase.
2) Conducting preliminary research is concerned with achieving a fundamental understanding of Thai property law and what a foreigner can and cannot own. This enables the buyer to ask relevant questions and communicate effectively with lawyers, agents and the seller. Part of the preliminary research should also be to narrow down the property search to a specific area.
3) Appoint your own lawyer. It is advisable to appoint a lawyer at this early stage – in advance of viewing properties or making offers – for two reasons: firstly, once engaged, your lawyer is on hand to offer advise during the entire process of viewing, negotiating and purchasing. Secondly, once you have identified a property you wish to purchase, it is possible to move more quickly with a purchase if a lawyer has already been engaged.
4) Property search and viewings. This includes working with property agents and discussing what to look out for during the viewing of properties.
5) Shortlisting and choosing a property requires properties to be evaluated and compared according to your investment objective and personally chosen criteria.
6) Making offers and negotiating requires a familiarity with the full range of issues that can potentially be negotiated with developers.
7) Reservations and deposits. Once a property has been chosen and a price has been agreed with the seller, the next step is usually entering into some form of reservation agreement and the payment of a deposit. The seller often requests a deposit as a demonstration that a purchaser is serious, in return for taking the property off the market and agreeing not to sell it to another party for the duration specified in the reservation agreement.
8) Due diligence. Sometimes step 7 is skipped if a purchaser prefers to proceed with due diligence before putting any deposit money down. The risk is that the deal could be lost if a second purchaser comes along and pays a deposit to reserve the property before the first interested purchaser has completed due diligence. Whichever sequence is preferred, due diligence is an essential step and performed by your lawyer.
9) Completion. Once due diligence has been completed and findings are satisfactory, seller and purchaser can then proceed to completion, which involves the signing of contracts, full payment of the purchase price and the transfer of property ownership.
10) Taking possession of the property involves the handover of keys, together with any other relevant documentation and guarantees.
These ten steps provide a conceptual framework for property buyers to move through the process of purchasing a property.
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Sources: “Buying Property in Thailand” by Rodney Waller.
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