Buying a condo in Thailand seems to be the most popular real estate transaction among foreigners in the Kingdom. The popularity of this practice may stem from the fact that condominiums are the only properties that foreigners can own free hold or that which can be registered in their own names.
However, the purchase of condo in Thailand is never a straightforward procedure as it’s also subject to some limitations as provided by the Condominium Act of Thailand.
Foreign buyers have to be aware of the following rules when purchasing a condo in Thailand:
Foreign Ownership Quota – In a certain condo development, foreigners are allowed to own 49% of the total units only. The majority of ownership should be with the locals. Developers can lease the units to foreigners who don’t make the foreign ownership quota. A provision can be included in the contract allowing the foreigner to purchase the unit should a foreign ownership slot is finally available.
Condo Purchase Finance – Funds to be used to finance condo purchase or any property purchase in Thailand by a foreigner should come from abroad. A Foreign Exchange Transaction Form (FET) which bears the record of the offshore funds transfer is required by the Land Office during the actual property transfer. The foreigner can open a savings account in Thailand to facilitate the wire transfer of the funds or alternatively, he can avail the escrow service assistance provided by some law firms.
Use of a standard contract prescribed by the Land Office – The Land Office has started to issue standard contract to Property Developers and sellers in their attempt to further protect the rights of the buyers. However, the contract is too simple and doesn’t contain the necessary and standard provisions that will fully safeguard the interests of the buyer. Fortunately, the Land Office acknowledges contracts drafted by registered law firms or a licensed attorney.
Our legal counselors and attorneys who are highly experienced in this area can guide and assist you along the process of dealing with all complications in property related transactions. Please feel free to contact us for additional information or assistance you may require. Our legal consultation is free-of-charge and we are more than happy to assist you.