Engaging in real estate transactions can easily lead to scams if one is not careful. Therefore, it is crucial to thoroughly check the details before making a purchase. Below are some examples of common scams in buying land or houses, which can serve as warnings and precautions to consider when making a purchase:

 

1. In the case of purchasing subdivided land, the first step is to verify whether the seller has the proper authorization to subdivide the land. If the seller has not obtained the necessary permissions, the rights that the buyer would receive from the seller or the project will be minimal or non-existent compared to those obtained through proper authorization.

 

      Therefore, before signing a purchase agreement, the buyer should ask the seller whether they have legally obtained permission to subdivide the land. If the seller claims to have obtained permission, it is advisable to request to see the authorization document and the approved project layout before proceeding. This is to avoid being misled by the seller. Once the decision to purchase is made, the next step is to verify that the plot the seller has indicated matches the project layout. If the seller points out a plot that does not correspond to the layout, it may lead to issues later on, such as constructing a house on someone else's land, resulting in various complications.

 

2. Another important verification is whether the person selling the land is indeed the owner. There have been cases where sellers have sold land that belongs to others, and after payment is made, the buyer does not receive the land transfer as per the contract, leading to legal disputes.

 

3. Ensure that the sales contract is clear. In the event of a dispute, it is essential to determine whether the agreement is a lease-to-own contract or a purchase agreement, as the implications of each differ in terms of default. If the agreement is a lease-to-own, it is advisable not to purchase that plot of land.

 

4. When buying land with a house, check whether the seller specifies that they are selling the land along with the structures. Some sellers may try to evade tax fees by only transferring the land without the house, which can lead to problems later on.

 

Recommendations for purchasing subdivided land and houses:

1. Only purchase land and houses from sellers who have received authorization for subdivision.

2. Verify the authorization with the local land office.

3. Check the public utilities and services, such as roads, clubs, playgrounds, and parks, to ensure they match the advertisements.

4. Land transactions must be registered with the land officer to be legally valid.

5. Be cautious when buying land with a house, as sellers may try to evade tax fees by only transferring the land.

 

Ways to Prevent Fraud and Scams:

                1. Keep your land title deed or important documents in a safe place to avoid loss.

                2. Avoid making loan agreements by handing over the title deed as collateral, as it could be a fake deed.

                3. Do not trust others with your title deed, as it may be altered or swapped.

                4. Never sign a power of attorney without filling in the necessary details. The person receiving the power of attorney must be trustworthy.

                5. Before buying, mortgaging, or accepting land as collateral, verify the title deed or important documents, the location, and the condition of the land.

                6. Do not overly trust real estate agents.

                7. Purchase land from trusted individuals, such as those with government authorization for subdivision.

                8. Regularly check your land both in the registry and physically.

                9. You can inquire about your registration documents by mail to the land office where the land is located.

                10. Legal transactions regarding land must be registered at the land office.

                11. Do not be swayed by advertisements or real estate agents; verify the location of the land, such as its proximity to roads and the condition of the land before purchasing.

SOURCE : www.reic.or.th