Guarantees for the safety of investor funds in Phuket: what you need to know

Investing in real estate is always a risk, especially when it comes to foreign markets. Phuket, as one of the most popular resorts in Thailand, attracts many investors who want to buy property on this picturesque island.

However, before taking a step towards a purchase, many ask themselves: what guarantees the safety of my funds?

In the United Arab Emirates (UAE), the escrow account system has become a standard for protecting investors. When purchasing real estate, the buyer transfers funds to a special escrow account, and the developer gains access to these funds only after certain conditions are met, such as the transfer of keys and completion of construction. This mechanism significantly reduces the risk of losing investments.

In Thailand, since 2008, there has also been a system resembling escrow, but it is mainly used when buying secondary real estate or transferring rights. In such cases, the funds are kept in an account managed by a bank or a specialized company, which provides additional protection for investors.

When buying new buildings in Phuket, the escrow system is not used. Investors transfer money directly to the developer's account. Payments are made according to a schedule specified in the contract, which may include installments. This means that until the construction is completed and the property rights are registered, the buyer has no legal guarantees that his funds will be protected.

However, this does not mean that investing in new buildings in Phuket is unsafe. In Thailand, there are two main laws that protect the rights of buyers: the Consumer Rights Act and the Condominium Act. These laws provide certain guarantees and protection of investors' interests.

To additionally insure yourself and minimize risks when buying real estate in Phuket, the following is recommended:

1. Studying the developer's reputation: Before making a decision to buy, it is worth conducting a thorough study of the developer company. Find out about their previous projects, their completion dates and customer reviews.

2. Document check: Make sure the developer has all the necessary permits and licenses for construction. This will help avoid problems in the future.

3. Construction supervision: If possible, visit the construction site periodically to monitor the progress of the work. This will give you confidence that the project is moving in the right direction.

4. Legal support: Contact local real estate lawyers. They will help you understand the intricacies of the law and protect your interests.

5. Payment arrangements: Try to include conditions in the contract that allow you to control the payment process. For example, you can stipulate that part of the amount will be paid only after certain stages of construction are completed.

Investing in real estate in Phuket can be profitable and safe if you approach it wisely. Although the escrow system is not applied to new buildings, there are other mechanisms and laws that protect the rights of investors.

The main thing is to carefully study the market, choose a reliable developer and do not hesitate to ask for help from Mercury Group specialists. This will help you not only save your money, but also make a successful investment in the future.