Steps to buying a Condo in Thailand
Before purchasing a condo, it is important to do your due diligence. You should consult a lawyer to review the contract and make sure you are fully aware of all the legal requirements. A lawyer will also be able to explain the terms of the sale and purchase agreement. Buying a condo in Thailand is a serious investment, and the legalities should be checked before you make a final decision.
Here are the easy steps to buying a condo in Thailand. Follow each step to make the purchase process easy without any errors or repeating the most common mistakes in property transactions.
Title Search Done on the Property
Having a Title Search done on the Property before buying the property is crucial to your purchase. The search will determine whether the seller has a clear legal title to the property, whether any encumbrances exist, and whether the property is free to sell. It will also reveal any existing mortgages or liens on the property. A title search can help you avoid costly mistakes.
The title deed needs close scrutiny. The seller must be able to identify himself as the owner and provide complete and certified copies of all relevant documents including a house book, building permit, and previous sale agreements. You will also want to examine the terms and conditions of any agreement made between the seller and the buyer. If possible, it would be advisable to have a lawyer draft the agreement between the seller and buyer.
It is best to have a Title Search done on the Property before buying the condo in Thailand. Thai law requires that a property owner pay Thailand property taxes. Before buying a condo in Thailand, you should ask if the developer has applied for any relevant licenses. You should also find out whether the developer has done an environmental impact study. If the property is not fully licensed, you cannot sell or lease it.
Due Diligence in Thailand
Before purchasing a condo in Thailand, it is important to conduct due diligence. This means checking the validity of a title deed and the property's physical condition. It also involves investigating the seller's background, government permits, and liens. In some cases, it may also be necessary to work with an attorney to ensure the property is free of defects.
It is essential to check for any legal issues with the property, as well as its owner's credibility. This may include checking for government-protected land, or confirming that building codes have been followed in the area. You may even want to check for encroachment on public property.
One important aspect that often gets overlooked when purchasing a condo in Thailand is its rules. These can have major implications on the purchase decision. If the rules of the complex are too restrictive, or poorly translated, you may want to consider working with a property lawyer to understand them.
Property Contract Review
Before buying a condo in Thailand, it is important to obtain a Property Contract Review. By conducting a Property Contract Review, you will make sure that all the terms and conditions in the contract are binding and are not subject to change in the future. Although the process of obtaining a Property Contract Review is not an easy one, it is an important step in the buying process.
It is also important to hire a lawyer specializing in property contracts in Thailand. These lawyers are experienced in buying property in Thailand and will ensure that all property contracts are legally valid. They will also check if the property has any permits or requirements. If the contract does not specify these things, you may find yourself in a legal bind.
Upon buying a condominium in Thailand, you should first get a copy of the Sales and Purchase Agreement (SPA). This is the official contract between the buyer and the developer. You should store the original copy of this document in a safe place, as you will need it to open a bank account in Thailand. Also, you should request proofs of payment that show the money has reached the developer's account. Finally, you will need to obtain Credit Advice / FETF from the receiving Thai bank. These documents will be required by the Land Department, as proof of ownership.
Transfer or Registration of Title
If you have decided to purchase a condo in Thailand, the first step is to transfer or register the title of the property. Before doing this, you must ensure that the property is free from any mortgage, encumbrances, or restrictions on development. For this purpose, you can hire a lawyer.
If you are a foreigner and want to buy a condominium, you must have a Thai baht account. Then, you must have sufficient funds to pay for the purchase. You should also ensure that you are prepared for the taxation that you will incur. Depending on the type of property, there may be different tax obligations for each kind of property.
Foreigners can purchase condos in Thailand under their own names, although it is not possible to own the land on which the property was built. However, it is possible to purchase a private limited company with a Thai owner in order to own the land.