Foreigners who intend to buy condominium in Thailand must take note of the legal requirements before acquiring the same in Thailand. There are several considerations that need to be followed with as allowed for under Thai laws.
Foreigners and juristic persons recognised as foreign by law may own a condominium unit under Section 19 of the New Condominium Act 2008 if they meet the following criteria:
- Permission to reside in the Kingdom under immigration laws;
- Permission to enter the Kingdom under the investment promotion law;
- Juristic persons registered under Thai law;
- Juristic persons who received a promotion certificate under the investment promotion law; and
- Foreigners or juristic persons regarded as aliens by law who have brought in foreign currency into the Kingdom.
The Act also says that at the time of registration, each condominium cannot include foreigners (individuals) or corporations with a holding ownership interest in the units totalling not more than 49% of the total number of units in the condominium.
The methods below are recommended for purchasing a condominium apartment in Thailand with simplicity.
Step 1: Find a Real Estate in Thailand
Thailand’s real estate market has flourished in the last decade, with more foreigners flocking to the country to retire. You may wish to write down the type, price, location, and reason for purchasing such property when conducting your search.
Always keep the following in mind:
- Always hire a registered Thai Law Firm like Konrad Legal
- When seeking real estate guidance in Thailand, always hire recognised estate agents.
- When you begin your search for Real Estate in Thailand, consult Real Estate Terms and the Real Estate FAQs.
- Be aware that many of the issues that come from the acquisition of a condo in Thailand can be avoided early. The first such step is the property search, whether in Bangkok, Pattaya, Hua Hin, or anywhere else in Thailand.
- When you’re looking for a condo in Thailand, beware of the common real estate traps.
- To avoid costly litigation, ask the correct questions.
Thailand’s real estate market is still very diverse, with a large range of homes in many different places.
Step 2: Consult with Thai Law Services to Buy Condominium in Thailand
Purchasing Real Estate in Thailand, whether a house or a condominium, necessitates the assistance of a competent law company. Always consult a lawyer before signing any contracts once you’ve determined which real estate you want to buy. Among other property services, check the following:
- A search of the property’s title. This determines and legally confirms that the Seller owns the property and has the authorization to dispose of it.
- Take note of the different types of title deeds used in Thailand.
- Before you sign any contracts, make sure you read them well. A Sale and Purchase Agreement is a legally binding contract between two parties that binds the Buyer and Seller to a transaction.
- When buying a condo off the plan, there are a few things to keep in mind:
- Pre-construction projects are more expensive than completed or older projects;
- You need legal guidance before purchasing a pre-construction project;
- Individual units in off-plan projects are priced differently depending on the unit floor; direction/orientation of the unit, and layout; and
- The timing of price rises in off-plan projects.
Price of the property, distribution of taxes and fees between the parties, payment conditions, and date of transfer of title deed are all common topics of discussion. Depending on the type of property, the buyer must pay a deposit.
Following the preparation and signing of the parties’ agreement, money must be transferred from abroad to Thailand. This is to obtain freehold ownership of the condominium unit. It’s crucial to remember the following:
- The transaction is in a foreign currency.
- The money has to come from overseas.
- The objective of the transfer, such as the purchase of a condominium unit, must be mentioned.
- Obtain a foreign exchange transaction certificate from the recipient bank.
Step 3: Mortgages in Thailand for Foreigners
Every year, a large number of tourists come to Thailand to spend their vacations in the comfort of a second home or their most valuable property investment.
It is feasible to obtain a mortgage to help you finance your property purchase in Thailand. There are now two banking institutions that offer foreigners mortgage bonds. Bangkok Bank and United Overseas Bank (UOB) are the two. These mortgage bonds are completed at their Singapore branch ‘off-shore.’
They provide foreigners with housing loans that are denominated in foreign currencies. Your mortgage loan/mortgage bond will be in Japanese Yen, Euro, or US Dollar. Interest rates differ depending on the currency.
Title Deed Transfer to Buy Condominium in Thailand
The Land Office with jurisdiction over the location where the property is located shall register the transfer of property ownership from the owner or developer to the power. The process of transferring ownership usually occurs after the development of the property. Generally, it is after signing the Sales and Purchase Agreement and payment of the selling price. The balance of the purchase price is usually paid at the Land Office on the day of transfer. Typically, buyers grant their lawyers or agents of Power of Attorney to finish this transaction.
The following fees must be paid at the Land Office during this transaction:
- Transfer fees are at 2% of the appraisal of the property’s value.
- Stamp duty is on a percentage of the assessment value or the actual selling price.
- Generate a 3.3 per cent specific business tax on the basis of the government’s appraisal value of the actual selling price.
- Taxation on earnings or Personal Income Tax.
The Seller and the Buyer negotiates the above costs and will be specified in the Sale and Purchase Agreement.
When purchasing condominium apartments, investors must be choosy and carefully evaluate the project’s attributes and investment possibilities.
For all types of real estate and legal help supporting your intent to buy condominium in Thailand, mail us at [email protected].
