1. Independent advice
It wouldn't cross the mind of many purchasers when buying in their home jurisdiction, but here one must ensure that the dividing lines between professionals: developers; contractors; lawyers for the 'seller'; lawyers for the'buyer'; accountants; project managers and management companies are clearly understood and disclosed. You should require your professionals to confirm there is no conflict of interest before representing you. Do not allow the seller to force you to choose their preferred legal representation but you may consider recommendations through enquiry.

2. Price range and budget
If you intend to invest a small amount of money, but it represents a large percentage of your savings, don't short cut on legal advice or due diligence. You should add to the purchase price that you are negotiation, the legal fees for due diligence; contract review and completion and also 'registration fees and taxes' for registration of transfer of title or registration of it to you.

3. Avoid assumptions
If 20 people have bought a property next to you, this does not mean that you should not investigate, independently, the investment you are about to make. Land Titles in Thailand require professional review of original government papers actually physically present at the relevant land office. Copies are not acceptable generally for obvious reasons. The history of a document also has to be investigated. Litigation checks must be conducted to ascertain if there is any issue with the property or the individuals selling the property which could affect a sale.

4. Choose an investment structure appropriate to the purchase
Typically you will find that the majority of projects offer a 'long leasehold' arrangement with a lease of 30 years plus two renewals of 30 years. There can be a variety of ways in which this structure is presented to a purchaser, and this should be investigated thoroughly by your advisers, and most importantly, explained in overall format at the outset of your investment. You can protect your beneficiaries, reduce tax liabilities and have a more saleable set of documents relating to your investment, if you take the time to be careful and adopt appropriate caution if necessary. Even where freehold is offered-through a condominium structure or otherwise, you should still analyse the property and the developer's or seller's obligations in detail.

5. Avoid surprises through understanding
If you accept that investing in property in Thailand results in a high premium return in a rising property market in comparison to your home jurisdiction, then you must also accept that there is a difference in law and commercial practice in Thailand which you must adapt to. If you appreciate that there are differences-for example, registering a lease requires a statutory 30 day waiting period post application, then these differences will not surprise you. Being prepared is an essential part of a safe investment. As a footnote to this tip-please try to enjoy your investment and the process involved. After all, you should enjoy spending your money, safely.

Information provided by Mr Desmond Hughes, Partner
Belmont Limcharoen International Law Firm
Tel: 076 342882-4    Email: desmond@belmontlimcharoen.com