Buying a Condo
Buying A Condominium In Thailand – 3 Steps
STEP 1: Finding Real Estate in Thailand
Real Estate in Thailand has taken off in the past decade with more foreigners’ wishing to retire in Thailand. You must consider the following:
· Always make use of registered lawyers in Thailand
· Always make use of reputable estate agents when taking advice on real estate in Thailand.
· See the Thailand Real Estate Outlook, the glossary of Real Estate Terms and the Real Estate FAQs when you start your search for Real Estate in Thailand,
· Be it in Bangkok, Pattaya or Hua Hin. Be aware that many of the problems that do arise from the purchase of a condo in Thailand can be avoided early on in the property search.
· Do they allow animals in the condo?
· You may also want to read up on Real Estate pitfalls in Thailand when going out on your search.
· Ask the right questions to avoid costly litigation.
STEP 2: Consulting a Lawyer in Thailand
Buying any Real Estate in Thailand be it a house or a condo requires the services of a reputable law firm. Once you have decided which real estate you are going to purchase, always consult a lawyer before signing any documents. The following would be checked amongst other property services:
· A title search over the property
· Note the type of Title Deeds in Thailand
· Review the contracts before signing
The considerations to bear in mind when you are buying a condo off plan:
· You would need legal advice as to buying in pre construction projects.
· There is also the cost of transfer or tax for your condominium.
· Thailand property taxes. Use the property transfer calculator to check your fees payable.
See the compressed version on buying real estate and the common property problems in Thailand.
STEP 3: Mortgages in Thailand for Foreigners
Each year many people come here to enjoy their holidays in the comfort of a second home or their most treasured property investment in Thailand. See the excellent articles on Financing for Foreigners in Thailand.
Obtaining a mortgage to finance your purchase of property in Thailand is possible.
· There are currently two banking institutions which provide mortgage bonds to foreigners. They are Bangkok Bank and United Overseas Bank (UOB). These mortgage bonds are concluded ‘off-shore’ at their Singapore branch.
· The home loans they provide to foreigners are based in foreign currencies. Your home loan/mortgage bond would be provided in either Japanese Yen, Euro or US Dollar. The interest rates also vary with each currency. See the section on Mortgage Bond for Foreigners in Thailand by UOB and Home Loans for Foreigners by Bangkok Bank. Also check their conditions set for their loans as to how to obtain a mortgage bond in Thailand for yourself.
Re-selling Your Condo
Selling and buying a condo in Thailand has already been explained. The resale of the condo is also easy if you follow the following basic steps with regards to property rights and the process of property sales in Thailand.
Similar to a title search for a new condominium project, this step is essential for a purpose of verification of status of the land where a building is located. Normally, as a used condominium, a land shall not be under mortgage, or, if it is, the buyer would acknowledge his position over such land.
If you buy a condominium from an individual, a sales agreement normally is a ready-to-use contract (An agreement which is not especially drafted for the sale between buyer and seller).
A norm is that a buyer shall pay a full price of property to a seller upon a transfer of ownership at the Land Department.
Registration Of Ownership
To buy a condominium, a buyer (or a seller, or both parties, depending on an agreement between parties) shall be responsible for a registration fee, a 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 a withholding tax.