Thailand encourages many expats to invest in condos based on their property zones. Moreover, Bangkok, popularly known for its strict regulatory framework, offers a blend of natural beauty and rich Thai traditions. On the other hand, due to recent architectural damage to skyscrapers, many expats hesitated to buy condos in Thailand post-earthquake. This highlights the importance of post-earthquake property safety in Thailand when considering any condo investment in Thailand.
As a result, investors need to seek assurance on the safety of both common areas and building units before proceeding with the property purchase. Let’s discover the safety guidelines for buying condos in Thailand that you should follow to make a secure condominium investment in Thailand!
Due Diligence for Condos in Thailand
To avoid legal discrepancies in purchasing a condo in Thailand, you’ll need to ensure a secure investment, a thorough property due diligence in Thailand is essential. Use this condominium legal checklist to verify your builder’s credibility.
Developer’s Reputation
- Visit the website of the Department of Business Development (DBD) to inspect the builder’s registration number and code.
- Checking on the builder’s reputation in compliance with the Real Estate Regulatory Authority (RERA) guidelines
- Ensuring that past building project registrations were completed
- Inspecting the construction quality of condo projects in Thailand based on ethical standards from local land offices
- Check the builder’s adherence to the No Objection Certificate (NOC) and other environmental clearances from RERA
- Monitor the condo project funding sources
- Visit the past project sites and interact with the residents of the condo for after-sales service reliability.
- Track the success rate of condo project deliveries in line with the Bangkok Metropolitan Administration (BMA)
- Verify the green building certifications under the TREES (Thai Rating of Energy and Environmental Sustainability)
Property Inspection
Did you know APC Thailand PLC, a real estate company, established a specialised team of building designers before buying condos in Thailand? Let’s examine the types of property inspection for a safe purchase:
Exterior Inspection | Interior Inspection |
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Moreover, you’ll require a property inspector to conduct this inspection. Lastly, the property inspector shall assist you in negotiations with the developers before investment.
Title Deed
To avoid complications from outstanding loans and legal mortgage disputes, you must examine the builder’s Encumbrance Certificate (EC). Furthermore, to determine authenticity, check the title deed number from the local land office records of the Thai Land Department. Lastly, to verify the title deed, you’ll need access to a property lien report to check the details about the property.
Legal Compliance
Under section 6 of the Thai Condominium Act, the following areas must be checked before buying condos from the builder:
- Condo plan including entrance and exit routes
- Spaces of personal property and common property depend on the nature of utilisation
- The ratio of ownership shared by each owner in the apartment
- A certificate verifying that the condominium in Thailand is not under mortgage
- Original document of Land Title Deed
- Draft of the regulations of the condominium juristic person
Foreign Ownership Quota
In line with Section 19 of the Condominium Act (No. 4) B.E. 2551, foreigners can own a condo in Thailand as long as the total foreign ownership doesn’t exceed 49% of the total floor area of all units in the buildings. Additionally, there are 2 criteria for foreign ownership of buying condos in Thailand:
- Freehold ownership with 49% of the total units in the condo project
- Leasehold ownership with leases granted up to 30 years
Legal Safety Guidelines for Buying Condos in Thailand
Individual units in Thailand should obtain policies to protect single units and personal belongings.
Do I need a property lawyer for buying condos in Thailand?
To navigate the real estate laws in Thailand, you’ll require a property lawyer for assistance in the ownership of condominium units. Additionally, in line with the Civil and Commercial Code, the property lawyer shall perform the following role:
- Firstly, inform the associated costs in the property agreements
- Secondly, assist in property transactions and negotiations
- Thirdly, draft property transfer agreements
- Fourthly, conduct due diligence on title deeds
Condominium Act and Its Implications For Foreign Buyers
Land ownership rights
Compared to land ownership rights, condominium rentals don’t provide complete security to an expat. However, strict building regulations create building permits to construction licenses for safety. In addition to building permits, the Thailand building regulations help expats restore property title deeds. Likewise, property damages can now be claimed for any loss or damage due to assault or evacuation incidents.
Insurance Considerations
The Condominium Act B.E. 2522 (1979) requires condo owners to be insured. However, insurance contracts under Thai law restrict the total amount to be paid to the insurer. Under Section 870, if two or more insurance contracts are made consecutively, only the first insurer is liable for the loss. Furthermore, if the amount paid by the first insurer fails to recover the loss, the next insurer becomes liable for the difference.
Compensation
However, if any form of loss or damage occurs from the assault or property damage leading to a lack of means of living, then the government pays a lump sum of 6,000 THB/person. Despite loss or damage to property, any form of loss of sight, total disability, or harm will be the duty of government authorities. Similarly, it includes medical expenses to be provided by Thai authorities, not exceeding 500,000 baht/person.
Financial Foresight for Buying Property in Thailand as a Foreigner
Did you know that common area fees for condo projects in Thailand range from THB 70 to THB 150 per sq m/month?
Hidden Fees associated with buying a condo
- Transfer fee of 2% on the value of the condominium unit
- Stamp duty of 0.5% on the appraised value
- Special Business Tax of 3.3% on the sales price of the property
- Withholding tax of 1% on the assessed value of the property
- Booking fee in the range of THB 10,000 to 50,000
- Sinking Fund of approx THB 200-1,200 square metres as a one-time payment
- Common Area Maintenance (CAM) fees range from 25 to 100 THB per square metre/month, depending on facilities, space utilisation, and location size.
- Inspection fees ranging from 2,000 THB to 5,000 THB
As per Thailand’s New Land and Building Tax Act B.E. 2567, the various tax rates for buying condos are:
| Appraised Value | Tax rate for Condominium |
| THB 11-50 million | 0.02% |
| THB 51-75 million | 0.03% |
| THB 76-100 million | 0.05% |
| Over THB 100 million | 0.1% |
Property Management Checklist for Buying Condos in Thailand
Whether it’s a luxury condo investment or a residential apartment unit, foreigners must be mindful of the building codes and property management policies.
Building Management of condo projects
Builders across Bangkok and Chiang Mai ensure property deals for foreigners. Meanwhile, to select the right property builder, you’ll require an inspection checklist for buying condos in Thailand:
| Type and Plan of Construction |
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| Safety |
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| Utilities |
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| Environmental Impact |
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| Permit |
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For a safe investment in a condo in Thailand, you must discuss with your builder the following areas:
- Building Zone Identification—First, you must check whether you have applied for the correct building zone under the Town Planning Act B.E. 2518 (1975). Comparatively, you should avoid the moderate-density residential areas in the ‘Orange Zone’ and the high-density residential areas in the ‘Red Zone.’
- Land Zone Identification- Check the place and street for buying the right condominium in the specific location of Thailand.
- Flood Zone Identification– The flood-prone areas to be avoided in the towns and cities of Thailand, based on the government database for 20 years.
- Property Building Coding—Based on the district, province, and title deed number, you’ll need to check the land valuation price from the Treasury Department.
- Building Type Identification- To avoid situations like cracks from the earthquake, you’ll need to consider the correct type of building:
| Building Type | Meters |
| High Building | At least 23 metres in height |
| Extra Large Building | More than 10,000 square metres |
| Special Building | Minimum 15 meters in height |
Property Management Policies in Condominium
- Common Areas– Performing a check on the usage of walkaways, building lanes, along with any entry or exit points in the property.
- Noise – Any kind of loud music or sounds disturbing the peace and comfort are prohibited in the property.
- Garbage Disposal- Monitoring how many garbage disposal units and the types of garbage boxes are present. Afterwards, you should examine the waste management procedures taking place in the unit.
- Recreational areas– Checking whether any swimming, sports, yoga, or gym spaces are available in the property.
- Pets and other animals- Examining the type of pets and the total number of pets in the property units. Additionally, it is important to check how to discard the pet waste and in which spaces you can walk your pet.
- Parking of vehicles – Assessing the number of vehicles to be parked per unit in the condominium in line with the parking rules. Lastly, you should also examine the parking space requirements to avoid legal trouble.
- Maintenance- Before buying the condominium, you must check the maintenance costs for using facilities like the pool, elevator, security, and building repairs. Subsequently, to use public facilities, maintenance fees are to be charged monthly.
Research and Preparation for Buying Condos Post-Earthquake
Recently, Bangkok Post announced that public anxiety among foreigners resulted in a drop in demand for condo projects in Thailand. Furthermore, to get better insight, you should research and review before the final investment in buying a condo in Thailand post-earthquake.
Research market value
You’ll need to understand the market value of condo projects in Bangkok by ensuring a fair price in property contracts. Likewise, CBRE Thailand stated that the reservation fee is non-refundable, and the sales and purchase agreement should be signed within 14 days. Thereafter, an installment payment of 15%-30% is required within 30 days, depending on the terms agreed with the developer. For example,
Net price of condo project =THB 15 million
Reservation fee=THB 150,000
Contract fee = 15%
Therefore, the amount that will be due on the signing of the agreement is:
(15,000,000 x15%)-150,000 = THB 2,100,000
Search for Reviews
While walking around Thailand, as a foreigner, you can see a lot of property billboard ads, however, you should check the reviews online. Moreover, you’ll need to search the client reviews from social media groups like Facebook and LinkedIn before buying condos in Thailand. Additionally, transparency on the quality of project construction and delivery can be checked from online real estate forums of Thailand and Google Reviews.
Important questions to ask the property developer
- What is the payment schedule?
- What is the down payment?
- How many revisions can be done in the house plans, materials, and appliances?
- Is there any builder warranty?
- Who will oversee the project?
- What is the maintenance fee structure?
- Had there been any legal issues associated with the previous projects?
- How many similar projects have you performed in the area we are interested in?
- Are there any potential issues with the local infrastructure (water, electricity, transportation)?
Key Takeaway
Consequently, buying condos in Thailand will no longer bring anxiety among foreigners! To avoid stress in buying a condo post-earthquake, it’s mandatory to review the builder’s profile and the hidden fees in condo projects across Thailand. Thus, a foreigner needs to inspect the building codes with property developers and abide by the Condominium Act for a safe purchase.
At Konrad Legal, our team ensures every home is safely insured and built on the beaches. Correspondingly, we make the process simpler for you through our expert guidance on matters like:
- Support in Property Verification
- Fast documentation and registration process
- Good relationship with the Land officials
- Supporting property planning services
