This is Thailand, a country most first world countries still consider third world.
That being said, money is not easy to come by, so there is always a percentage of Thai people that will scam everyone for money for themselves.
BE ADVISED, some Thai people have had their entire lives to perfect their scams; that is why so many people get scammed in Thailand. There are expert scammers so BEWARE.
The most expensive scam concerns land and housing. Land, houses, new property developers, and condo’s.
Yes, yes, yes there are intricate and professional scammers trying to separate you from millions of baht and if you fall for a scam, the chance of getting your money back is almost nothing.
Even things that look like $100 million dollar development projects, can end up being a giant scam.
Due diligence is required and for any real estate purchases USE A LAWYER, to mitigate any chances you have of getting scammed.
The most important thing to understand is SCAMMERS are a reality in Thailand and always be on the look-out in any transaction.
How to avoid Thailand property scams
For starters, you will see a lot of blanket statements out there as it relates to Thailand property scams. These include:
- Don’t buy off-plan
- Only buy from a developer listed on the stock exchange
- Visit the site in person
- Work with a real estate agent and a lawyer
The biggest issue in Thailand by far is individuals acting as intermediaries for properties. They have zero authority to sell what is being advertised or, in some cases, aren’t selling anything at all.
The latter is extremely problematic. Traditionally, this involves a person or individual offering to sell you a condominium and villa. That property either doesn’t exist or is real but will never be transferred to you. There may even be a physical condo or villa that you can stay at. In reality, the unit has likely been “sold” to multiple people.
Upon payment, you will either be given fake documents or be told various reasons why a transfer cannot take place. As we saw with the recent scam in Koh Samui, this is something that can go on for years.
To avoid this from happening to you, find a reputable real estate agent or developer who can guide you through the process. Third-party representatives will usually try to rush you into transferring cash as soon as possible while a property professional will focus on your needs.
2) Don’t trust tax claims
Anyone claiming they will pay your property taxes in Thailand is banking on the fact that you probably don’t understand the country’s taxation system. For starters, there is no annual tax for residential property less than THB50 million so most owners will already be exempt.
Beyond that, there is a housing and rent tax. The entity operating your rental can provide you with documentation of income, but you will still need to handle the tax yourself. Projects may also have various annual fees which are the owner’s responsibility. Someone claiming to pay these should be able to provide you with a receipt from the company managing the project.
One thing to note is that the seller can cover several taxes and fees during the buying process. The transaction won’t be closed until these have been settled which ensures everything is within the law. Don’t accept any gentlemen’s agreement where the seller states they will pay you back later if you clear the fee first.
Those thinking about buying from a developer directly should focus on track record. It is important to qualify this, however. There is no need to limit your search only to homebuilders with a large number of completed projects. There are countless boutique firms in resort areas that are just as good as the big guys.
You will also find landowners and architects who simply prefer to build on a smaller scale. The key here is to find some sort of track record or proof of concept. This can be other completed villas at the site you are buying yours or work done elsewhere. Ultimately, you want to see that they have succeeded as a developer somewhere.
4) Avoid returns on an uncompleted project
While not common, you may find guaranteed rental returns being offered when you purchase a unit at a project that is uncompleted and has no means to generate revenue. This is problematic for any number of reasons. It is best to just avoid these altogether.
5) Make sure there is a contract and have a lawyer review it
You are not required by law to hire a lawyer in the entire real estate buying process in Thailand. However, paying them for a few hours of work to review your purchase agreement is strongly advised. A legal professional can give you information on your rights should something go wrong as well as details on items such as force majeure.