Buying property in Pattaya, Jomtien or Naklua has always been very popular amongst expats in Thailand. The only problem with Thai real estate has been that it is unregulated and this has caused many problems in the past. The new government has stepped into the unregulated property market in Thailand by passing the new ‘Escrow Account Systems’.
This new system allows commercial banks in Thailand to open an escrow account which helps to protect the buy with regards to his down payment for a property. Money can only be withdrawn from this account if certain conditions have been met. how this is going to work in reality is another issue as it has not been tried and tested as yet.
Not many dodgy developers will like the new system as you may deposit money into the account and allow the bank to act as the escrow agent. If the property was suppose to be built within the next 12 months and no development has taken place, you would be able to have your money returned. Many smaller developers used to use the money to build the project itself with the down payments. That system is clearly coming to an end.
The Real Estate Brokers Association in the Eastern Seaboard in Pattaya also has strict control over their members and with the new system coming into place, would make the administration of deposits less risky than what it has been in the past. If you want to know more about the new system in Thailand speak to any of our British solicitors in Pattaya which is located near the Pattaya bus terminal or speak to us by calling us on our 24 hour UK toll-free numbers.
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