Real Estate Mistakes to Avoid

By 5 REAL ESTATE INVESTING MISTAKES TO AVOID

FAILURE TO PERFORM DUE DILIGENCE

Performing property due diligence means thoroughly scrutinizing, surrounding a potential investment. Some investors tend to disregard this important buying process and do not realize that failure to conduct due diligence usually results in terrible distress on the part of the buyer. If problems, risks, and liabilities evade any responsibility for them later on.

NOT GETTING A LAWYER’S HELP

Many real estate investors proceed to the buying process by themselves. This usually ends up with unfavorable deal and

It is bestto seek the help of a lawyer for advice, and guidance in checking the important legal matters regarding the property. Lawyers are the best people to help reviewthe sales contract. They will ensure that itcontainsproper terms and conditions, without any terms of any hidden cost and drawbacks.

Moreover, Thai lawyers evidently understand the Thailand System and they can make the buyers understand the rights and obligations of each party. This includes who pays which taxes and fees, when to make payments, how long a project will take to completion and possible remedies if they do not complete the project on time. They can protect the buyer’s interest. They can give warnings of any error along the way and ensure a fair transaction.

NEGLECTING TO VERIFY IF THE TITLE DEED IS CLEAN AND LEGITIMATE

Before making any payments, it is necessary toproveifthe Title Deed is correct and legal. Land descriptions contained in any Title Deed must match with the records in the Land Department. It is necessary toreviewthe Register of Records stated at the back of the Title Deed to be aware of any burdens, or any pending or potential legal action existing on the property.

UNDERESTIMATING THE FULL COST OF THE PROPERTY

Most potential buyers tend to focus on the selling price and (Transfer Fee) at which the rate is 2% of the appraised value of the property. Along with this, there are renovation expenses, property taxes, maintenance cost, and other related expenses.

GIVING THE DOWN PAYMENT TOO SOON

Many real estate investors get so excited to make partial payment pay a deposit to reserve the property while the purchase is on process. In case the buyer backs out and the deal does not push through, the seller usually has the right to keep the deposit. This is the reason why it is wise to only give the down payment after careful evaluation of the property.