Samui’s property market outlook is very promising. The region’s unexplored sites are now being discovered, thus providing more options or choices for a highly selective consumer. In addition, more and more developers are making constructions in the area, proving the area’s high marketability. With all these revolutionary progress, the downpour of foreign investments is rather expected. Yet, to secure that sound investments are made, the importance of legal due diligence should not be taken for granted
Foreign investors and legal due diligence
The value of legal due diligence, most especially to foreign investors is always indispensible. First of all, their unfamiliarity with the Thai legal system makes them prone to committing legal mistakes or errors. Secondly, their lack of knowledge to the Thai culture may expose them to scams and other illegal activities. These two factors readily determine the foreigners need for legal due diligence in property acquisition. Via legal due diligence, all transactions are performed in accordance with Thailand’s policies and regulations. In addition, it prevents the consumer from future legal problems and conflicts.
What are the legal considerations that should be inspected?
To conduct legal due diligence in Samui, one should examine the following factors:
- Title deeds – Despite of Thailand’s restrictions on foreign land ownership, there are a few exemptions where foreigners can own land in the country. First is through establishing a company or having a Thai spouse. One can also purchase condominiums in Thailand. Condo units are the only freehold property that foreigners can have. Or they could engage into lease and usufructs agreements. With all these possibilities, foreign consumers and investors should always inspect the property’s title deeds. For those who are able to buy land, check whether the seller is the legitimate landowner. The same rule applies for those who are planning to purchase condominiums and those who are into property leasing. See to it that it is free from any technicalities and conflicts.
- Possible violations – Property-related violations are not uncommon in the real-estate industry. Thus, it would be best to check whether the property at stake is free from violating legal policies and regulations. No matter how small the violation is, such should be carefully examined and investigated.
- Insurance policies – Scrutinize the properties’ claim history, if there is any. This will render valuable information regarding the overall condition of the targeted asset. In this way, buyers can evaluate the property’s market worth and value.
The above-mentioned legal considerations are simple examples that should not be taken for granted in performing legal due diligence. But of course, there are still other aspects that are worth looking for. Evidently, legal due diligence requires the services of reputable law firms and attorneys. Via hiring their services, one can ensure that the investments made in Samui are free from any legal problems that could cause potential damage in the future.