It is important to work with reputable property developers (if buying off plan), real estate agents, and lawyers familiar with Thai property law. Contracts may differ from international standards.
Conduct a thorough title search to verify land ownership, investigate any encumbrances, and ensure proper zoning and planning codes. Also consider getting a building survey.
Condominiums
Condos are an excellent option for people looking for flexible housing in Thailand. They offer a number of benefits, including the ability to customize living spaces and share maintenance costs with other condo owners. They also offer short-term rental opportunities, making them ideal for investors. However, buying a condominium in Thailand is not without risks. Some developers go bankrupt or are not able to complete their projects, leaving buyers with little or no return on their investment. In addition, in Thailand escrow arrangements are rare and developers can often ask for pre-payments or deposits that are not secure or insured.
When buying a condo in Thailand, you should look for a standard Sale-Purchase Agreement that complies with the Condominium Act and consumer protection laws. The contract should outline the responsibilities of both parties and should include an agreed price, transfer fees, and other expenses.
Foreigners can own a condominium unit in Thailand provided the property is licensed as one and it does not violate Section 19 of the Condominium Act. This law stipulates that not more than 49% of a condominium building can be owned by foreigners. Foreigners who wish to own more than 49% of a condominium can do so by entering into a joint venture with a Thai corporation. Alternatively, they can enter into a lease with the developer.
Land
If you have found a piece of land you want to purchase, the seller and their real estate agent will usually ask you for a deposit to reserve it in your name. This deposit should be held in an escrow account until all of the transaction details are finalized. This is important to protect your investment and show the seller you are committed to buying property in Thailand. It is also recommended to get a survey done before you make the deposit, to avoid pitfalls like land encroachments or coastal erosion/flooding risks.
If a foreigner wants to buy land in Thailand, there are several restrictions and legal considerations that must be taken into account. In general, foreigners cannot own land outright but can lease it for up to 30 years with the option of renewal. They can also use Thai Limited Companies to buy and own land, but this comes with its own set of legal implications.
When buying land in Thailand, buyers must pay various taxes and fees. These include transfer fees, withholding tax, specific business taxes, and stamp duty. These costs are typically based on the property’s appraised value. Upon payment, the buyer and seller must meet with the Land Department to complete the official property transfer process. The process typically takes 30-90 days. It is recommended to hire a lawyer when transferring money for a land sale, as they can help ensure all requirements are met and protect your investment.
Houses
When buying a house in Thailand, you must choose a real estate agent that has a good reputation and years of experience. You can also ask for referrals from your friends or family. If you plan to get a mortgage, you must meet certain criteria set by Thai banks and international institutions as well. Typically, foreigners will need to submit documents that show they have a steady job or income and will be able to pay the loan.
When choosing a property, make sure it has a legal land title deed. This is the official document administered by the Land Department that shows a person’s ownership of a piece of land, its survey status, and any rights, obligations, or mortgages on it. The highest form of land title deed offering full private ownership in Thailand is a chanote, or nor sor 4 (jor).
When purchasing a property, it is important to check that the property developer has a good track record and has the necessary licenses to operate. It is also crucial to investigate any potential issues, such as a history of land encroachments or coastal erosion and flooding risks. You should also consider the location of the property and its proximity to amenities. Lastly, you should obtain insurance to cover any natural damage or loss. This is not a legal requirement, but it is highly recommended to ensure your investment is protected.
Foreigners
Buying property as a foreigner is possible in Thailand, but the process can be complicated. It is best to hire a local real estate agent and a qualified lawyer who specializes in property transactions. This will help navigate the legal complexities and ensure compliance with ownership restrictions and financial requirements. It is also a good idea to engage a surveyor to perform an inspection of the property prior to making a purchase.
In general, foreigners can buy freehold condominium units as long as the total ratio of foreign ownership within the condo building does not exceed 49%. However, when it comes to landed properties like houses and villas, direct freehold ownership is not usually available to foreigners. This is because landed property must be owned by a Thai citizen, and the only way to own land as a foreigner in Thailand is through leasing (rather than outright purchase).
When it comes to purchasing property, foreigners can usually expect to pay a number of fees in addition to the agreed-upon price for the property. These include a government stamp duty, a land office fee, and a transfer fee (or transfer tax). Some sellers may also charge brokerage fees to the buyers for their services. Moreover, it is recommended to get a professional title search carried out by a local law firm before the final transaction.
