Purchasing a property is an exciting time and for most people, it is the biggest financial commitment they will ever make. It is important to be aware of the potential pitfalls during the process to avoid any nasty surprises.
Not Arranging a Survey
When buying a property, it is advisable to arrange a survey. The mortgage lender will carry out a valuation of the property to assess the value of their loan but this is not the same as a survey. A valuation is a brief inspection to assess the value of the mortgage. A survey is a more detailed inspection to assess the condition of the property and highlight any defects. This is particularly important if the property is an older building as there may be hidden defects that could be expensive to put right.
Not Checking the Title Deeds
The title deeds are a legal document that proves ownership of the property. It is important to check the title deeds to ensure that the person selling the property is the legal owner and that there are no outstanding mortgages or other charges against the property.
Not Checking Planning Permission
If you are buying a property that is going to be developed or extended, it is important to check that planning permission has been granted. If planning permission has not been granted, it may be difficult to obtain in the future which could affect the value of the property.
Not Checking for Jumps or Easements
A jump is an agreement between two properties that allow one property to be built over the other. An easement is a right of way which allows access to a Property for sale in Phuket. It is important to check for jumps or easements as they may restrict what can be done with the property in the future.
Not Checking the Deed of Covenant
The deed of covenant is a legal document that sets out the terms of the contract between the buyer and seller. It is important to check the deed of covenant to ensure that you are happy with the terms and that there are no hidden clauses that could be disadvantageous.
Not Checking the Service Charge
If you are buying a property that is leasehold, it is important to check the service charge. The service charge is an annual fee that covers the cost of maintaining the communal areas of the building. The service charge can be expensive so it is important to check that you are happy with the amount before you buy the property.
Not Checking the Ground Rent
The ground rent is an annual fee that is payable to the landlord for the use of the land on which the property is built. It is important to check the ground rent to ensure that you are happy with the amount before you buy the property.
Not Checking the Insurance
It is important to check that the property is insured against fire, flood, and other risks. The mortgage lender will require you to take out buildings insurance but it is also important to insure your contents.
