| Of course,
purchasing real estate in other countries is going to get easier as the
decade grows older. It is a tremendous growth market after all, restrained
only by its difficulties.
BUT, this
report is about CONDOMINEIUM purchasing……….
I recently
spent months researching condos in the Pattaya, Thailand, area. I
talked to a lot of experts and participants in the field. I came
away with the feeling that it’s a lot easier to buy property overseas when
the money it costs represents relative pocket change to the buyer. There
are so many variables-sewers, noise, people, politics – that could cause
complications that it would be best not to have everything riding on one
purchase. You don’t want a suicidal case of buyer’s remorse.
I like condos
for a lot of reasons. In Thailand they can be bought by foreigners
in their own names. There is no need to incorporate a Thai company. Or
have the property in the name of a Thai friend or lover who may just slip
out the back, Jack; and legally take or sell the property with them.
Units higher
up in a building are my favorites. More breezes, better views. Mosquitoes
and other insects usually can’t make it past the sixth floor. And,
there are a lot of condos built, and a lot more being built each day in
Pattaya in particular and Thailand in general.
I am not an
attorney, let alone a Thai real-estate attorney. But having talked with
many, I would like to offer this overview of what a Thai condo contract
should include.
For educational
purposes only!!!!!!!
DETAILS
OF A CONTRACT!
Full names
and details of parties involved.
A paragraph
stating what the goals of all parties involved are!
Then a section
of legal and real estate definitions to make sure everyone is talking and
understanding a common language.
Any legal encumbrances
(on the unit) should be stated at this time.
Any furniture
involved should be noted.
Only after
all these issues are addressed, experts say, should the heart of the contract
be written. This includes the address and map location of the unit-(floor,
number, etc.), any tenant common areas, dates of completion of sale and
possession by the new owner, parking spaces, etc.
Then purchase
price and terms of payment are stated. In the third world real estate
transactions are mostly and purely cash. Not for the faint hearted putting
their life savings out there! Dates of payment, also.
Penalties to
be encored by either buyer or seller, if they fail to abide by the terms
and dates of the agreements, are then stated.
Somewhere
in the contract, usually at this point, it is stated which party pays which
fees, including cost of transferring the title.
There are clauses
governing the buyer. They include agree to abide by the rules of the condo
associations. Perhaps not to engage in business activities,
There are also
clauses governing the seller. Including swearing to be the true owner,
as well as stating that the 49% foreigner-51% Thai ratio of condo ownership
in the building is still valid. Hey, I told you, you were a foreigner
forever overseas!
There would
be clauses covering when the monthly payments for a variety of condo services
would be taken over by the buyer.
Finally, there
are clauses stating what penalties would be incurred by either buyer or
seller should either one walk out of the deal.
That’s just
a sample of a good real estate contract. Unfortunately, even a good
contract may fail to be enforced by a corruptible legal system, or resolution
of complaint might take long years.
Again, when
it comes to buying real estate in foreign countries three things apply
BUYER, BEWARE
BUYER, BEWARE
BUYER, BEWARE
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links and resources
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