The property transfer process or standard conveyancing procedures in Thailand is explained as follows. These are the conveyancing formalities in the country when you transfer property in Pattaya, Bangkok or elsewhere. The Thai Real Estate market is unregulated so the foreigner who is contemplating on buying property in Thailand is advised to follow the following property transfer procedures in order to protect his real estate investments in the Kingdom.
These are the standard conveyancing procedures in Thailand. This procedure has to be observed when purchasing a property in Thailand. This to verify the authenticity of the seller/owner of the property. If he is indeed a reliable or trusted guy as he claims to be. You wouldn’t want to be embroiled in a legal battle later on as the property you purchased. Which could very well be owned by another person or that the seller ran away with your deposit. Corollary to this, a Title Search on the property should be conducted to verify the Title Deed. Also to check for any encumbrances over the property.
Various liens such as back taxes and other rules and regulations have to be taken into consideration before a decision is made. The title deed has to be checked prior to the attestation of the Sale and Purchase Agreement or any payment made. Fake Title Deeds proliferate in the market so the necessity to verify with the Land Office the title deed of the property to be purchased. This is why the title deed search is so important. These would all be part of the standard conveyancing procedures in Thailand. See how to buy an apartment in Thailand on this website.
It is advised that you contact reputable Bangkok property lawyers specializing in Thai property laws to assist you with the procedure especially when it comes to interpreting contracts. Our lawyer will be able to explain to you the terms and conditions specified in the Sale and Purchase Agreement. Since, most of the times, all these fancy legal terms are very confusing and really hard to understand. As a norm, the seller usually is the party who drafts the Agreement. It is therefore expected that they would draft the agreement that serves their benefits.
Consulting our lawyer for a legal opinion would be a big help. This so that you know all the implications and impacts of the terms and conditions of the Agreement. Once it has been attested, and in most cases the lawyer would represent their client, which herein is the purchaser, in the negotiation with the seller if they feel that their client has been taken advantage of, and most likely, with an anticipation of reaching a mutual benefit for both parties.
As it has been publicly aware of and according to the relevant Laws and Regulations of the Kingdom of Thailand. The conveyance of the ownership over a property can’t be accomplished by a mere handover of the title deed from the seller to the purchaser. The achievement of the conveyance thereof shall be fulfilled once both parties had registered the transfer of ownership at the competent Land Department.
Dealing with the registration of the transfer of ownership at the land department personally can be very exhausting and annoying since it takes time, usually almost a day. There are so many formalities to be followed. To simplify this matter, many purchasers choose to retain a law firm to take care of it as they are very acquainted with all procedures involved. See also the article on buying property in Thailand on here.
By authorizing the lawyer via POA, the authorized lawyer shall act on the purchaser’s behalf at the Land Department to make sure that the transfer of ownership is done properly.
Apart from the said transactions, there are many other transactions that need to be registered. These at the land department such as a: Usufruct, Right of Habitation, Servitude, or other burdens over the property.
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.
3 major property related transactions requiring registration.
The Sale and Purchase of Property are accomplished once the property has been transferred. This from the seller to the purchaser through a formal registration process the Land Department. This rule applies to all types of property; land, house, condominium unit, etc. If not duly registered with the Land Department, all transactions will be nullified and legality of ownership will not be accorded to the buyer despite fulfilling the rest of the conveyancing procedures.
According to the relevant laws and regulations, the Lease of Property that is longer than a period of 3 years must be registered at the competent Land Department. If not, the validity of such unregistered Lease shall be effective for only 3 years. The maximum period of a Lease that can be registered for one time is 30 years. However, after it has reached the thirtieth year, the lease can be renewed for another 30 years and the Lease registration must be, once again, executed at the Land Department.
To secure a loan, the creditor usually asks the debtor to submit a title deed of a property. Usually a piece of land, a house, or a condominium unit, as a security for that loan. We call it a mortgage. The consequence when a property is under a mortgage is that when the debtor (the mortgager) is unable or refuses to pay back the debt, the secured creditor (the mortgagee) is entitled to sell the mortgaged property and collect the proceeds from the sale of that property, only that which is equivalent to the debt and associated interest, as the reimbursement for the loan.
However, in order for the mortgagee to be able to do so, the mortgage must be registered with the land officers at the Land Department. Once the mortgage had been registered, even though the mortgage might later be sold or transferred to the third party; the mortgagee will remain entitled to claim reimbursement from that mortgage.
Always take into consideration the property taxes in Thailand for foreigners as many do not consider the tax implications when buying property and starting the conveyancing process. If you are going to be buying an apartment in Thailand in also consider if the property is held in the name of a person or a company. You will have to conduct due diligence to ensure that the company holding the property is in good standing. The standard conveyancing procedures are easy to understand.
If you wish to know where is the best place to buy property in Thailand then consider the reason for the purchase. If you are buying it for retirement or if you are buying it to lease out the property as an investment income. Buying property such as a condo in Bangkok, Pattaya or Phuket is still very popular.
As stated that there are risks when buying property in Thailand and this you will need to minimise with a due diligence check before the conveyancing process is completed. Buying property in Thailand does come with it risks yet more people will always wonder can foreigners buy property in Thailand and the answer is yea, but do take extra precautions. This is the standard conveyancing procedures for property in the country.
The information contained on our website is for general information only and does not constitute legal advice.
– Instructions from you starts the process
– Receive draft sales agreement
– Conduct a due diligence of property, developer and property
– Report back to you
– Signing of the agreement
– Obtain the Foreign Exchange Certificate and money
– Conveyancing is now complete after payment and transfer
Yes. Conveyancing in Thailand is always needed when buying or selling property.
The sale agreement in Thailand is the agreement between the buyer and the seller. The property sale as well as the terms and conditions are listed in this agreement. Always ensure that when buying off-plan that the agreement has time limits as many projects in Thailand are never completed.
Yes foreigners can buy property in Thailand. The most common property is a condominium unit which is easier to buy and sell. Many also buy and keep it as investment properties. Take proper legal and financial advice before you start the process.