Your condo purchase or 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.
If you are going to be buying a condominium in Thailand then first take legal advice. However, the purchase of a condo in Thailand is never a straightforward procedure as it’s also subject to some limitations as provided by the Condominium Act of Thailand. Read further if you want to buy an apartment in Thailand. Understand how to buy a condo in Thailand. See also the conveyancing formalities when buying property.
When you are looking at buying property then remember that there are common mistakes when buying property and the most common is that people who have lost their investments in Thailand have been negligent in investigating the property and developer first. Always do a due diligence study on the property as well as the developer before any agreement is signed.
When you are looking at buying property then remember that there are common mistakes when buying property and the most common is that people who have lost their investments in Thailand have been negligent in investigating the property and developer first. There is also the lawyer fees for buying a condo.
These are the basics for property buying in Thailand be it that you wish to buy a condo in Pattaya or a Condo in Phuket or Bangkok. Always have the property checked before you pay any form of deposit. Remember that if you are going to buy a condo with a view of the mountain or sea then you will need to have a law firm check what the zoning rights are between your condo and the ocean or mountain.
Due diligence reports in Thailand are very important when buying a property in Thailand as buying an apartment in Thailand is not always easy as well as if you want to buy a house in Thailand. Always look at holding a Chanote title for foreigners, so speak to our real estate lawyer for more assistance.
Foreign buyers have to be aware of the following rules when purchasing a condo in Thailand with your condo purchase.:
The process of buying a condo in Thailand is explained below however always seek advice from our property lawyer Thailand first. This as there are always risks of buying property in Thailand. Certain steps need to be followed. See the links on the process of buying property in Thailand. Certain processes need to be completed and questions to ask when buying property. Also, the person you might be talking to might be an agent of the seller but not an authorized agent so anything said is not going to be binding at transfer.Always take advice from a Bangkok property lawyer before signing anything.
You will note that in Thailand foreigners may not own more than 49% of the floor space of the building. Each development has a foreign quota. So you will need to check this before you place a deposit with the developer. Also, when you purchase the condo unit. The money has to be transmitted to Thailand from outside the country.
There is a legal process for this as you will need to prove that it came from outside the country for the Land Department. If you are buying joint property. Then see what is required when you buy a property with your Thai wife. 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.
When you view your property, you should do it on a day that you would think would be very busy. You want to know what the traffic is like in the morning and evening as well as traffic and noise pollution on weekends. Some property is located close to a weekend market which makes the area busy and noisy. There is also the zoning of the property as an industrial state next to the property will devalue it. Some also discover that the area gets massive traffic jams on weekends. See what real estate law in Thailand says.
Buying Property in Thailand is unlike the West, there is no trust fund insurance in Thailand. Recovering the money most times from a lawyer in Thailand will be very difficult. Always deal with reputable property developers and attorneys when buying a condo. Not all developers are the same so buy from those who have an excellent reputation. See what the legal process is when paying for your condo. This process of paying for your property needs to follow a very specific process which us explained here. The receiving Bank in Thailand will also need to provide you with the proof that you have followed the purchase process. The transfer fees will also tell you the lawyer fee for buying a condo in the country.
Thai Title Deeds need to be understood and understand why you need a due diligence report. Note that in the past there have been instances where the developer had developed the property on government land. There was the case in Samui where there had been more deeds than available land. Understand the seize of property as well as having the need to check your title deed status. Many have lost their investments while trying to save of costs. Don’t lose your investment for this reason.
Property transfer taxes will need to be paid. There is a system in Thailand where the buyer and seller each pay a different part of the cost. The government has also tried to stop “property flipping” many years back and tried to cool down the property market by getting extra taxes on property that had not been held for 5 years. Be aware of the additional costs in this regard.
Liened property in Thailand is not that uncommon. Many times people will wait until the last minute to sell when the property has more than one mortgage bond registered over it. You will need to see the original title deed as there might be loans against the property. For many small time loans the lender will hold the original title deed. There are also usufructs in rural areas as well as servitudes. These are not uncommon as well, so check before you sign the sales agreement. If you want to buy an apartment in Thailand then read some more.
Property developers in Thailand come in all shapes and sizes. There are small developers where the risk to your investment will be high. Right up to those brand names where your investment is safer. See what to ask and to consider when choosing a property developer in Thailand. Also look at each ones reputation in Thailand on the internet. In recent times there have been many failed condo projects in Pattaya where the developers failed to build what was being sold. You can see the Bangkok Post for these failed projects. See what the process is when a foreigner buys a condo in Thailand and the rules you will need to follow.
Property measurements are another issue. The measurements could be the outside measurements of the rooms and not the internal measurements. This is important if you buy a house in Thailand. Understand how to convert your property measurements in Thailand to what you understand in the West.
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 finally be available.
Always take legal advice and ensure that any agreement is part of the sales agreement.
Buying property in Thailand or buying a condo in Thailand especially if you want to buy a house in Thailand as this will always needs expert advice. 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.
Think about your condo purchase. If you plan on retiring in Thailand then buying a condo may be for you. You will need to take proper investment advice in this regards. Many rent out their condo while back home but the rental market is very tough even for expensive properties. Consider your reason for the condominium unit first.
What you should consider in Thailand is where the condominium is located. Bangkok as an example has a flood zone that few buyers consider. It is not recommended buying a condominium in a flood zone as it may lower the resale value of your property.
Yes, foreigners can own a condominium in Thailand in their name however foreigners may not own more than 49% of all the condo units in the building or project. Before you buy a condominium in Thailand check if the property is in the name of another foreigner you are buying from.