Buying property in Thailand can become complicated. Here is a breakdown on how to purchase property in Thailand if you are a foreign national. It is advisable to speak to a property agent when planning on purchasing property in Thailand, as they are familiar with the geography and knows how to communicate in the local language. The agent would be able to save you some time with the selection of properties within your price range. Purchasing directly from the developer is not saving you money as acquiring property from an agent.
Legal planning is very important as you are going to spend a part of your life savings to purchase this property, and your steps in the process should be carefully planned. Prior to signing any deposit agreement, it is best to sit down with a lawyer and discuss what the legal process would be.
If a foreigner wants to own land in Thailand and build a house, he or she should obtain a long-term lease on the land. Then the foreigner should apply for the construction permit to build a house under his or her own name. The lease can be drafted with an option to reassign to another person if you decide to sell, and ability to sublease with an option to purchase if ever the law changes in the future regarding freehold ownership of land by foreigners.
A thorough examination of the Title Deed registered at the Land Department should be done in order to verify that the seller has the legal title of the land prior to entering a contractual agreement. The title search will reveal any registered interests on the land, and will also verify the right to access the property.
When the time comes that you will feel satisfied with the property being discussed, the seller will then be asking you to make a deposit to show good faith in continuing the process. The seller, in return, will reserve the property for you and start drafting the contracts for the purchase. Unless stated in the contract, the deposit is non-refundable.
The seller will have the appropriate contracts drafted and prepared for you that is why it is highly recommended that you have a lawyer to review the terms and conditions stated in the contracts. The contract should include remedies should there be any delay in the property being built, as well as conditions stating the penalty if you come up late with the payment. Normally, a first payment is 25%, another 25% when the roof is on, the third 25% when the doors and windows are attached and the last 25% when the fixtures and fittings are completed.
If you are considering buying property in Thailand then speak to our property lawyer for more information.