It is common when buying a real estate property in Thailand for foreigners to be told they need a local lawyer. While this (the lawyer part) may be true, one of the first rules of property investing in Thailand, before signing any contract or handing over money, is to use an independent lawyer, one who has no personal interest in the real estate market, no connection to the sellers or their agents and who ensures that everything at your point of purchase is done properly and you receive the legal information that you need.

The 3 most common pitfalls to avoid:

Pitfall no. 1: Using the lawyer recommended by the seller. Real estate agents are very careful which lawyer they refer to and the potential for conflicts of interest on the lawyer's part is vast. The lawyer will likely act as an extension of the seller rather than an independent legal councel for the foreign home buyer. At the end of the day the fact of the matter is that many legal issues are often overlooked, not explained, never resolved by the local lawyer at the outset and legal advice given by the lawyer has been very poor indeed.

Keep in mind that local law offices in tourist areas aiming their services specifally at foreigners depend for most of their income on real estate sales and real estate sellers to steer work towards them, not away from them. In tourist areas like Koh Samui, Koh Phangan, Pattaya, Phuket local professionals often work closely together and the lawyer will be careful not to be a deal killer for the real estate agent, keeping his own income and future work in mind. They will likely avoid legal issues that would be a deal breaker if you were aware of their presence. It is also not uncommon that foreign and Thai law offices in the tourist areas are involved in real estate sales, or are managed behind the scenes by property developers or real estate agents. Their advice is likely selfish or at worst fraudulent. For independent legal advice you may in many cases be better of with a reputable general law firm in Bangkok than a one-sided local property law firm.

Pitfall no. 2: Taking the advice not to overly concern yourself with legalities in Thailand. Do your homework before you sign any contract or you may regret the day you ever thought about buying a home in Thailand. Buying a property in a foreign country like Thailand with scams and underhand dealings, foreign land ownership restrictions and limited lease rights should be properly investigated and evaluated using proper legal advice and information. Too many while caught in a holiday euphoria sign first and ask questions afterwards. They have wished they'd had a second chance upon finding themselves, ill-advised, conned, uninformed and misled.

Pitfall no. 3: Expecting that other expats (the friendly westerner sales person, the legal consultant or accountant) have your interests at heart. You are an outsider and their aim is to close the deal. They will imply that property purchase in Thailand is save, easy and straightforward (or they are out of work in no time). The contrary is true. They all make money, even if you risk losing all of yours.

Caveat emptor, the security of your real estate investment in Thailand depends on it.

--------------

Advertisement: for legal service and online advice visit ThailandLawOnline: (click image below):