Condominium Purchase in Thailand
Buying a condominium in Thailand is perhaps the simplest and easiest option available to foreigners.
The only restrictions on purchasing a condominium in Thailand are that the percentage of units sold to foreigners cannot exceed 49% of the total number of units in the condominium block, and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a "Foreign Exchange Transaction Form".
The Foreign Exchange Transaction Form is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand. You must request a Foreign Exchange Transaction Form from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium in Thailand, and the Foreign Exchange Transaction Form must specify that the remittance is solely for the purpose of purchasing a property in Thailand.
The owner of each condominium in Thailand is issued a certificate of unit ownership. This certificate has a statement saying exactly what percentage of rights over the common areas of the building each owner has. Process to Purchase a Condominium Pursuant to Thai Property Law, a foreigner may have a "Freehold Ownership" over a unit in a condominium under certain restrictions.
Four Steps to Own a Condo - New Development1. Title Search
This to verify the status of the land which a condominium is constructed. Normally, the 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 lawyer reviews this contract in order to protect your rights as the buyer.
3. PaymentDeposit
Normally, 1% of the total price of the unit is required as a deposit payment to reserve a right to purchase a condo.
Down Payment
The sum of 25% or 30% (depending on the agreement between the buyer and the seller) of the total price of the unit is required as a first payment towards the sale price of a unit. There may also be some payments to be made between the down payment and the actual 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.
4. Registration of Ownership
After the delivery of the condominium unit and the final payment, the seller will then transfer the ownership of the condominium unit into your name. A registration fee, a stamp duty, and a withholding tax must be paid at the time the transfer of ownership takes place.
Four Steps to Own a Condo for Re-Sale1. 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 the building is located. Normally, as a used condominium, the land would not be under mortgage, or, if it is, the buyer would acknowledge his position over such land.
2. Sales Agreement
If you buy a condominium from an individual, the sales agreement is normally a ready-to-use contract (An agreement which is not especially drafted for the sale between buyer and seller).
3. Payment
The norm is that the buyer pays the full price of property to the seller upon the transfer of ownership at the Land Department.
4. Registration of Ownership
To buy a condominium, the buyer or the seller (or both parties, depending on the agreement between parties) would be responsible for the registration fee, stamp duty (in case of having owned the property for more than 5 years) or a special business tax (in case of having owned the property for less than 5 years), and withholding tax.
Buying a condominium in Thailand is perhaps the simplest and easiest option available to foreigners.
The only restrictions on purchasing a condominium in Thailand are that the percentage of units sold to foreigners cannot exceed 49% of the total number of units in the condominium block, and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a "Foreign Exchange Transaction Form".
The Foreign Exchange Transaction Form is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand. You must request a Foreign Exchange Transaction Form from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium in Thailand, and the Foreign Exchange Transaction Form must specify that the remittance is solely for the purpose of purchasing a property in Thailand.
The owner of each condominium in Thailand is issued a certificate of unit ownership. This certificate has a statement saying exactly what percentage of rights over the common areas of the building each owner has. Process to Purchase a Condominium Pursuant to Thai Property Law, a foreigner may have a "Freehold Ownership" over a unit in a condominium under certain restrictions.
Four Steps to Own a Condo - New Development1. Title Search
This to verify the status of the land which a condominium is constructed. Normally, the 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 lawyer reviews this contract in order to protect your rights as the buyer.
3. PaymentDeposit
Normally, 1% of the total price of the unit is required as a deposit payment to reserve a right to purchase a condo.
Down Payment
The sum of 25% or 30% (depending on the agreement between the buyer and the seller) of the total price of the unit is required as a first payment towards the sale price of a unit. There may also be some payments to be made between the down payment and the actual 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.
4. Registration of Ownership
After the delivery of the condominium unit and the final payment, the seller will then transfer the ownership of the condominium unit into your name. A registration fee, a stamp duty, and a withholding tax must be paid at the time the transfer of ownership takes place.
Four Steps to Own a Condo for Re-Sale1. 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 the building is located. Normally, as a used condominium, the land would not be under mortgage, or, if it is, the buyer would acknowledge his position over such land.
2. Sales Agreement
If you buy a condominium from an individual, the sales agreement is normally a ready-to-use contract (An agreement which is not especially drafted for the sale between buyer and seller).
3. Payment
The norm is that the buyer pays the full price of property to the seller upon the transfer of ownership at the Land Department.
4. Registration of Ownership
To buy a condominium, the buyer or the seller (or both parties, depending on the agreement between parties) would be responsible for the registration fee, stamp duty (in case of having owned the property for more than 5 years) or a special business tax (in case of having owned the property for less than 5 years), and withholding tax.
