Buying a Condominium in Thailand is a simple and easy thing to do with the right documents, following the correct and legal steps and with the assistance of a good lawyer. Our law firm specializes in property and real estate acquisition inside and outside Bangkok. Our lawyers are very keen on this field as it requires a lot of legal process as well as ensuring that the steps and documents required provided by the Law of the Kingdom are followed thoroughly. 

There are some provisions and steps that needs to be followed in order for a foreigner to legally own and acquire a freehold condominium in Thailand. Although it is thought to be a difficult process, we make sure that our services in terms of property and real estate acquisitions can help our clients make the process easier, understand the terms better and make sure that it will be beneficial on our client’s side. As the demand for buying a condominium rises in Thailand, it becomes more difficult to deal with this type of real estate matters but our lawyers are trained professionally in handling foreign property acquisition and they have significant experienc e in the industry.

 

Table of Contents:

1. Thailand Property and Real Estate Acquisition for Foreigners
2. What are the steps in Buying a Condominium in Thailand?
3. What could go wrong when Buying a Condominium in Thailand?
4. When is the best time to buy a Condominium in Thailand?

1. Thailand Property and Real Estate Acquisition for Foreigners

As the influx of foreigners looking forward to own a real estate property in Thailand, it is thought that it is a difficult and awful process when in fact it is direct and straightforward steps for the foreigners, the steps in accordance to the Condominium Act B.E. 2522 (1979) is as easy as making a hardboiled egg but without a legal advisor or a lawyer expert on this field, it will be a risky process for any foreigner. The following are the conditions for foreigners who wants to own a freehold condominium in Thailand:

• According to the Condominium Act B.E. 2522 (1979) under Section 19/2 only 49% of the whole condominium units collectively can be owned by foreigners and the rest of the 51% shall be owned by Thai Nationals. So, the purchased property must be part of the 49% collective units allowed for the Foreigners. This can be checked directly by our lawyers for the clients.
• The project of the condominium must be registered under the Condominium Act. Our lawyers can check it on the Land Department for further clarification and confirmation. This will be included under the due diligence report processed by the foreigner’s respective legal advisor or lawyer.
• The funds that will be used to purchase the condominium unit must be made through overseas transaction, meaning that the client or the foreigner must transfer the fund from other country and shall convert the money into Thai Baht. For this process an official bank statement call Foreign Exchange Transaction Form or FET form will be needed. Without this document, a foreigner cannot register the condominium under his/her name.

2. What are the steps in Buying a Condominium in Thailand?

It is important that you should know the legal and correct steps in Buying a Condominium in Thailand before you engage in any deals or transactions. There have been cases that a foreigner fails to buy a property and there were some instances that the property has not been transferred under their names. To avoid such problems, you must buy the condominium through the following legal steps:

• The first step is to look for a potential property or unit. If you have checked a prospective condominium unit according to your desire (it can either be Pre-Construction Units or Completed Units). Once you have selected the unit that you want to buy then you can proceed to the second step.
• The second step to consult a lawyer regarding the property that you are interested. The lawyer will then process a Due Diligence for the property, as well as Title search, Sales and Purchase Agreement Review/Drafting, and reviewing any contracts with regards to the property.
• The third step and final step is the property acquisition itself which will be taken care of the lawyer and all the documents provided. This step will also include the payment process which will be required to be send from overseas account directly to a Thai Bank account. Once the significant documents have been signed, it is up to the client to make use of the unit as long as it is provisioned under the signed terms and agreement between him/her and the seller.

3. What could go wrong when Buying a Condominium in Thailand?

A lot could go wrong if you don’t have a clear perspective and a brief knowledge about how property acquisition and ownership run in Thailand that is why it is best to engage on any property acquisition deals with a lawyer knowledgeable on this field. Without having clearly agreed in an off the plan purchase agreement that the purchase concerns a freehold purchase of a condominium registered under the Condominium Act, and not a leasehold purchase, everything could go wrong. If you have least understanding about the leasehold laws in Thailand you might get confronted with pro-landlord laws in Thailand and unexpected responsibilities, costs and taxes as a result of renting a unit. By not having transferred foreign currency into Thailand at least equal to the purchase price, it could cause a lot of trouble during the process of transferring the title to the buyer and could cause more. 

One of the factors that is also considered significant in buying a property in Thailand is seeking for legal advice on the condominium sale and purchase agreement required terms and conditions and responsibilities of the parties such as payments in a third-party escrow account or directly to the seller, this way, you can ensure that your well-being is protected as well as your assets. Without seeking for professional and legal advice on how taxes and transfer fees are to be divided and ending up paying more than necessary.

It is also important and necessary to ask your legal and business advisor to conduct a due diligence report on a project or unit to avoid any unexpected issues after signing the purchase agreement and having paid the deposit, there are some instances the clients tend to overlook this part and ends up dealing with difficult situation. It is also a must to have the title deed and previous land office sale agreement to make sure that there are no existing issues with the title and sale itself, this is another important measure to protect yourself from unsuspected issues, your advisor must also make sure that the unit is a registered condominium under the Thailand Condominium Act but an unregistered leasehold residential apartment building. And the most important thing is reading and discussing with your advisor about the rules and regulations being set forth with regards to the condominium as well as all the necessary documents you will sign, this is to make sure that you have no shrouded obligations that might resurface unexpectedly. 

4. When is the best time to buy a Condominium in Thailand?

Since the real estate market of Thailand is improving, there is no better time than now to invest in Thailand. There are a lot of choices for you to decide, a lot of legally owned and wonderful properties available for investment and for acquisition. With the higher land and condominium price as well as a good rental yield rate and return opportunity. Along with the infrastructural expansion and the economic improvement in Thailand in the past few years, this is the perfect time to invest in Thai real estate market before the property price both condominium price and land price is highly increased in the near future.

 

We can help you with Thailand Property acquisition

We know that acquiring a property in Thailand can be a bit of a hassle. Dealing with a lot of paper works and documentations. Our lawyers have significant experience with property and real estate acquisitions in Thailand. We make sure that every step of the way is beneficial for you. We will dedicate our time in providing the best outcome and for our clients, because we believe that you deserve the best service.

Here at Sabai Property Law Firm, we always value your choices. We will provide assessment on your decisions as well as your choice of property. We make sure that you get the most out of every property and real estate deals that we will have in the future. Our law firm has established a great name in the real estate industry, providing the best outcome for our clients and making sure that they benefit on our solutions and advice. Because here at Sabai Property Law firm, your best interest is our top priority, and your satisfaction is our happiness.

If you would like to know more and discuss about Buying a Condominium in Thailand, please do not hesitate to contact through our phone number and email.