Step-by-Step: Condo Buying Guide in Thailand

From Paperwork to Possession – Condo Buying Guide in Thailand

1. Research and Selection

• Market Trends:
  • www.ddproperty.com offers an extensive database for tracking price trends. With over 96,000 condos listed, you can get a comprehensive view of what’s available.
• Location, Location, Location:
  • Use www.fazwaz.com to get a feel for neighborhoods. Look beyond just the map; consider proximity to transit, schools, and lifestyle amenities.
• Developer Reputation:
  • High pre-sale rates (59.2% for new Bangkok condos in early 2024) can indicate developer reliability. Look for reviews and past project successes.

2. Legalities and Ownership

• Foreign Ownership Quota:
  • Now possibly up to 75% in some projects, but always verify with the condo’s juristic office.
• Understanding Thai Condo Laws:
  • Under the Condominium Act, foreigners can own condos freehold but not land. Here’s a snapshot:
    • Freehold vs. Leasehold: Freehold for condos, leasehold for land or when quotas are exceeded.
• Legal Requirements:
  • Ensure you’re legally allowed to buy and handle currency transfer with an FET form.
• Documentation:
  • Look for “Chanote” for land titles, “Or Chor 2” for condos.
• Legal Assistance:
  • Siam Legal International, GPS Legal, or Integrity Legal in Bangkok can be invaluable. Here’s why:
    • Expertise: They navigate the legal maze for you.
    • Negotiation: Better contract terms.
    • Due Diligence: Checks on property and developer legitimacy.
• Risks to Consider:
  • Be aware of inheritance laws and potential tax changes.
• Online Legal Resources:
  • www.asean.com provides forums for real-world advice from fellow buyers.

3. Making an Offer and Reservation

4. Sales Agreement

5. Due Diligence and Finalization

• Sinking Fund: Is there enough for maintenance?
• Common Fees: Check these ongoing costs.
• Legal Checks: No surprises with title or encumbrances.

6. Transfer of Ownership

• Mandatory Attendance: You, or someone you’ve legally appointed with a Power of Attorney, must be present at the Land Department alongside your lawyer. This is where the legal transfer of ownership happens.
• Documentation Preparation:
  • Sales Agreement: Ensure all copies are signed and ready.
  • Title Deed: The original “Or Chor 2” for your condo unit.
  • Identification: Passports for foreigners, ID cards for Thai nationals.
  • Power of Attorney (if applicable): If you can’t attend, this document allows someone else to act on your behalf.
• Location: Depending on where your condo is located, you’ll visit the corresponding local Land Office. For example, condos in central Bangkok would typically involve a visit to the Bangkok Land Office at Din Daeng.

• Transfer Fee:
  • This is 2% of the assessed value or the purchase price, whichever is higher. The assessed value might be lower than the actual selling price, which could benefit you in terms of fees.
• Stamp Duty:
  • Only 0.5% if there’s no transfer fee paid (which is not common in condo transactions), but in most cases, only the transfer fee is applicable unless it’s a leasehold property transfer.
• Specific Transfer Tax:
  • Normally, the buyer pays the transfer fee, but it’s negotiable who covers this between buyer and seller. Make sure it’s clearly stated in your contract.

• Verification: The Land Office will verify all documents, ensuring everything is in order before proceeding with the transfer.
• Payment:
  • Fees must be paid by cash or bank transfer at the Land Office. Some offices might have ATMs or accept credit card payments, but it’s best to check beforehand.
• Registration:
  • Once payments are made and documents checked, the title deed will be updated with your name. This process can take from a few hours to a whole day, depending on the office’s workload.
• Receipt and New Title:
  • You’ll receive a receipt for your payments and the new title deed reflecting your ownership. Keep these documents safe!

• Tax Implications:
  • Property tax in Thailand is relatively low, but always check for any legislative changes that might affect your property tax obligations.
• Registration of Utility Services:
  • After ownership is transferred, you’ll need to register utilities in your name. This might require a visit to each service provider or can sometimes be done online.
• Insurance:
  • Now’s the time to look into property insurance if you haven’t already, ensuring your new asset is protected against unforeseen events.

• Plan Ahead: Book an appointment at the Land Office if possible, especially in busy areas like Bangkok, to avoid long waiting times.
• Legal Guidance: Your lawyer will be instrumental here, not just for the transfer but for explaining any last-minute legalities or changes in procedure.
• Double-Check Documents: Before you leave for the Land Office, go through your documents one last time to ensure completeness and correctness.

7. Taking Possession

• Inspection: Ensure everything matches the sales promise.
• Utilities: Set these up before you move in.
• Insurance: Protect your investment.

8. Post-Purchase

• Visa: Look into long-term residency if you’re planning to stay.
• Rental Management: If not living there full-time, manage your property wisely. We can assist at Kanhomes.com, drop us a line at Contact Us.

Conclusion