Thailand Conveyancers

The face of property development is changing rapidly in Thailand. It has thrived over the years due to many factors including better regulation, better infrastructure, stronger economic growth and the continual growth in tourism, particularly in the high-end spectrum.

All this, in turn, has led to greater demand for properties in Thailand. In fact, last year alone, the real estate and construction industry accounted for 6.3% of the GDP or 264 billion baht. The Thai government has, therefore, recognized the significance of property development and we have seen them just recently implementing various tax breaks in order to further stimulate the real estate and construction industry. The government hopes to increase the GDP of the sector to as much as 7% with this stimulus package.

Developments in Thai Law

All this is good news for the Thai economy, particularly for property developers. However, with every extraordinary growth comes with it a gamut of challenges. Over the years, Thailand’s Real Estate Promotion Office has seen a sharp increase in disputes between developers and buyers. So much so that steps have been taken to amend the Condominium Act which is due to take effect in the third quarter of this year. This new amendment will make developers more accountable for any assertions made in their advertising ensuring that brochures used to sell the property are not misleading in any way. The new amended Act will also ensure more uniformity in contracts where the obligations of the developers are much clearer. For instance, they will be responsible for the monthly maintenance fees for the common areas of units which are still unsold.

In 2000, we also saw some regulation introduced under the Consumer Protection Act which provided a guideline to the contractual terms used in an off-plan property purchase. These are all significant steps in protecting buyers from unscrupulous developers and thereby creating a more stable environment in which the industry can flourish.

Despite all these new measures, the property development business still has much room for improvement. Many other jurisdictions in the world have established much stronger regulatory framework in order to maintain efficiency and transparency in the process. There are actually a few variants to the practice of selling off-plan properties. The current ‘sell then build’ concept which is so widely used here can be prone to abuse if left unregulated. The most obvious problem is if the project is abandoned before completion. The lack of access to escrow accounts, which will be discussed later below, has made this issue more problematic. Always seek the services of a conveyancer in Thailand tpo rensure that your property agreements has been reviewed. The contract review will ensure that you make a sound investment with little to no risk.

With offices in all the main cities of Thailand allow our conveyancers in Bangkok, Samui, Hua Hin, Phuket, Pattaya or Chiang Mai review your property agreement for you. do it today!