Power Tips for Making the Right Condominium Purchase in the Bangkok Market
The Deposit Is a Negotiating Tool
No greater commitment to a property sale takes place than making a deposit on a purchase. For this reason the buyer is urged to the outcome as a leverage tool in the negotiation process. There’s no turning back once the deposit has been placed and so retrospective negotiations cannot take place after the money is transferred.
Use that power shift wisely in negotiations, and make no commitments until all the fine details are teased out to the buyer’s advantage.
The kind of topics that can be subject to the deposit being made are up to the buyer but may include issues such as upgrading the property, property clearance or pending repairs. It’s completely in the Thai property seller’s interest to find solutions to purchase hurdles as quickly as possible, and so if finalization is dependent on these, no better reality check can be imposed on their desire to sell.
Never be in a rush to put a deposit down and take your time to work out where the possible areas of dissatisfaction can emerge with the Condominium in the future. See if there are ways to include resolution in the sales process.
Seller Background Checks
Whether the buyer goes through a private seller or through a real estate agent, it’s worthwhile doing some background checks. Thai property potential buyers should complete a few informal background checks for a private sale by ensuring that the seller is a reputable person, that can be relied on to execute a sales transaction in an honest manner. Invaluable to the process are third party references.
For example it’s not unreasonable to ask the vendor for documentation of any historical satisfactory transactions in their past. For a real estate agent the same rules apply, except that a greater number of satisfied customer checks are warranted.
It’s a good idea to talk to a handful of satisfied customers about their experience of the process and maybe take into account any learnings to be gained, in order to experience a satisfactory transaction.
What is the Role of the Developer?
Developers are often risk taking entrepreneurs who commence projects without securing full funds. Their assumption is that sales will take place and these early completions will fund the next round of construction.
It’s a bit like living hand to mouth for developers so the important thing here is to double check that the no unfinished projects are on their books.
It’s important to verify that previous projects were on time and under budget, although sometimes the latter issue can spill over a little.
Title Searches Aren’t Hard
A title search is a simple request that can be made to the Thai Land department. In most cases once a property or purchase has been identified a title search can be completed within in a few days. The two issues that you will be looking to clarify with a title search is information about the owner of the land, and the context of the development.
The primary point of verification is to establish that the seller is the owner of the land. Once this is clarified, it’s important to know if any commitments or loans to the property are outstanding or need settling.
The Title Search will reveal the development potential of a property and will make clear if any legal restrictions are present.
This matters in case the owner wishes to enact post-purchase changes to the property and may include environmental considerations such as property uses or height restrictions on adjacent projects.