There has been some negative press in the past about holiday makers in Phuket who rushed into a purchase, but then changed their minds.
In some cases they were making an emotional decision, only to be faced with buyer’s remorse; in other cases they discovered they had been misled about the purchase.
In either case, they were dismayed to find they could not get their deposit back.
Reservation deposits are common practice, but you should never pay one without first seeking the advice of both a professional real estate advisor, and an experienced Thai lawyer.
If you are harboring any doubts about your agent, it is especially important that you hold off on the deposit until you have sought legal advice. You must be 100% confident that your representatives are protecting your interests.
This is will be immediately evident when it comes to discussions of the reservation deposit. A reputable real estate advisor and an experienced lawyer will insist on any deposit be refundable, thus protecting you if you have cause to change to your mind.
Furthermore, no seller/agent should object to time being given for a lawyer to check over the agreement to ensure that this and other essential clauses are clear.
Don’t Forget Due Diligence
The reservation deposit and reviewing the sales and purchase agreement are just the start of the due diligence a good lawyer can conduct on your behalf.
It is important that the title deed be checked prior to paying any deposit. However, if this has not been done, the examination of the clear title should be a minimum prerequisite for the sale to proceed to the next level.
Your lawyer should be taking every necessary step to ensure that the law is on your side if the due diligence turn up anything that would warrant pulling out of the purchase.
Such an exit clause must be clearly worded so that the developer or seller is bound by law to return the deposit should anything be amiss.
A lawyer can also advise you on other necessary clauses, which may relate to either your specific situation, or to the property or development you are looking at.
If you’d like to learn a little more about what due diligence is you can read our article here:
Try To Avoid Acting With Urgency
The property sector in Phuket remains extremely buoyant, and there are amazing deals to be found for anyone who takes the time to look.
Knowingly making a hasty decision can mean you fall prey to an agent with a “quick buck” mentality, who sees your eagerness as opportunity to make an easy sale.
In Phuket, as elsewhere, there are always new developments coming on line for you to consider. Rushing into a property purchase or buying on impulse are not the right recipes for a successful investment.
You Must Find an Experienced Lawyer
If your decision to buy is going to be made on the spur of the moment, it is important to engage a good lawyer. He/She will be able to build some of the aforementioned safeguards into your agreement.
In short, always make sure your interests are protected before you transfer any deposit money.