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Purchasing A Condo

 

According to Thai property law, a foreigner may have a freehold ownership over a unit in condominium under certain restrictions.

Four Steps to Owning a Condo - New Developments

1. Title Search

To verify the status of a land over which a condominium is constructed. Normally a land would be under mortgage with a supporting bank.

2. Sale and Purchase Agreement

This document specifies the selling price, terms and conditions of the sale. It is advised that a contract is to be reviewed by a lawyer for the best protection of rights of the buyer.

3. Payment

a) Deposit: Normally 1% of the total price of the unit is required as a deposit to reserve a right to purchase a condo.

b) Down Payment: A sum of 25% or 30%, depending on an agreement between a buyer and a seller, of the total price of a unit is required as a first payment. There may also be payments to be made between a down payment and a transfer date, this will depend on your written agreement with the developer. The buyer's monies to buy a condominium must be transferred into a Thailand bank account from abroad with the purpose of the transfer stated as 'Property Purchase'.

4. Registration of Ownership

After the 'delivery of' the completed condominium unit and the final payment, the seller will then transfer the ownership of a condominium unit into your name. A registration fee, stamp duty and a withholding tax must be paid at the time of transfer of ownership.

Four Steps to Owning a Condo - 2nd hand sale in condo development

1. Title Search

Similar to a title search for a new condominium project, this step is essential for the purpose of verification of status of the land where a building is located. Normally, as a used condominium, a land shall not be under mortgage or if it is, the buyer would acknowledge his position over such land.

2. Sale Agreement

If you buy a condominium from an individual a sales agreement normally is a ready-to-use contract (an agreement which is not especially drafted for the sale between buyer and seller).

3. Payment

A norm is that a buyer shall pay the full price of the property to the seller upon the transfer of ownership at the Land Department.

4. Registration of Ownership

To buy a condominium, a buyer (or a seller, or both parties, depending on an agreement between parties) shall be responsible for a registration fee, a stamp duty (in case of having owned the property for more than 5 years), a special business tax (in case of having owned the property for less than 5 years) and a withholding tax.

5. Condominium Transfer of Ownership Arrangement

The Buyer has to arrange document the following:

1. The Buyer is required to open bank account in Thailand, unless the buyer transfers the money directly to the seller then a bank account is not necessary.

2. The Buyer is required to transfer money to their Thai bank account from outside of Thailand, foreigners cannot bring cash and open a bank account in Thailand to buy a condominium. If foreigners work in Thailand and can show how the money was earned then it is possible.

3. The Buyer or Seller needs to acquire a Foreign Exchange Transaction form from the bank in which they have opened an account, to be done 2 working days before the transfer.

4. Passport and copies.

5. Father and mother's name, last name & spouse (if any).

6. Address of the buyer in resident country.

7. Please bring cash to pay for Transfer fee.

8. Please ask the Seller the preferred way to receive the payment, by cash, banker's draft or a cashier's cheque.

9. Please ask the Buyer about the declaration price of the condominium.