According to the Condominium Act 2008 (№4), foreigners may purchase the units in condominiums in full private ownership*. Ownership conditions: 1. Foreigners do not own more than 49% of the total area of the condominium, 2. The funds for the condominium unit purchase has been arrived to Thailand from abroad that is confirmed by the special certificate issued by Thai Bank in the TT3 form. While fulfilling these conditions the buyer becomes the sole and full-fledged owner of a unit in condominium and has the right to dispose of it at his discretion, to possess, use, sell, give, bequeath.
*Condominium is a residential complex with its own infrastructure and management company (the legal entity of condominium) the separate units in which can be purchased.
The land plots ownership under the right of private property by foreigners is prohibited by Thai legislation. The registration of houses and villas in Thailand, as well as other objects, which are inseparably connected with land issue, possible on a leasehold basis for a 30 years period, with an extension opportunity 30+30. Besides, there is an option to register real estate on the Thai company, 49% shares of which as well as the managing position will belong to its director – foreigner.
The purchase of a unit in a condominium in Thailand includes a range of sequential steps:
Housing under construction. The primary market. The purchase from the developer.
- Condominium units selection, the choice of floors, the planning of condominium unit and its type. The clarification of the final selling price, as well as the exact date of payment and their sizes.
- The payment of the booking deposit by the buyer. The seller fixes the selling price, reserves the chosen unit, and issues a receipt for the deposit, which confirms the booking deposit payment.
- The developer gets the following documents and information: the copy of the passport of the buyer, the data on the actual residence address of the buyer (for correspondence), contact telephone numbers (in Thailand and abroad), e-mail address.
- The buyer gets an invoice for payment of fees, the dates and amounts of payments, especially, of the first one should be re-confirmed.
- There will be appointed the date of signing the sale-purchase contract, which usually occurs after the first payment. Parties will read the contract and in the case of the absence of comments will sign it in two copies on each page. There should be the signatures of two witnesses as well. The further payments will be carried out on the basis of the contract and invoice.
- It is necessary to specify the purpose of payment while making a payment: the payment by Mr. Ivan Ivanov for the unit number XXX (the number of unit that indicated in the contract) in a condominium XXX (name of the condominium according to the contract). The bank payment receipt must be retained after the payment and the copy of receipt must be sent to the agent and the representative of the developer in order to confirm the payment.
- The process of transferring the unit to the new owner will take place upon the receipt of notice from the condominium developer on the readiness of unit for occupancy as well as after the payment of 100% of the unit price. The buyer must physically check the readiness of the unit and the quality of construction, decoration and furniture. In the case of absence of flaws and inconsistencies with the contract the acceptance act of the unit will be signed.
- The buyer pays the amortization payments, the maintenance of the condominium unit and the cost of installing water and electricity meters.
- After some period of time following the actual occupancy, when the title deed (Chanot) is ready, the owner of unit in condominium (or his representative) meets with the representative of the developer in the Land Office, where the developer transfers to the buyer the ownership of the purchased unit in Thailand. The state fee and taxes for the transferring of ownership must be paid at the same time.
The ready housing. Secondary market. Buying from the owner.
- Condominium unit selection and its inspection.
- Check the title deed (Chanot) for the ownership, mortgage and arrest issues
- Gathering information about the parties of transaction: the names, actual residential address, contact telephone numbers, copies of passports.
- The preparation of the sale-purchase contract with the detailed description of the terms of deal: the unit price, the amount of deposit, the date of the transfer of ownership, the conditions of payment of state duty and tax for the transferring of ownership and all other conditions. At the time of signing the contract, the buyer pays a deposit.
- The exact amount of the state fees and taxes for the transferring of ownership should be clarified in the Land Office
- Gathering documents for registration the transfer of ownership: the buyer must obtain a special certificate issued by Thai Bank in the TT3 form, which confirms the foreign origin of the money destined to buy a condominium unit in Thailand. The seller must obtain a certificate from the condominium office, confirming that the unit can be registered on a foreign name and do not have any debts.
- All documents along with the sum of state fees and taxes as well as the powers of attorney transmitted to the lawyer, who is responsible for carrying out the transaction at the Land Office.**
- At the time of transaction the transfer of rights and the name of the buyer as the current owner of property shall be pointed out in the title deed (Chanot).
- While getting the title deed (Chanot) from a lawyer, the buyer transmits to the seller the remaining amount of money under the contract, by cash or pre-prepared bank check. At the same time the sales contract is deemed executed and the buyer becomes the legal owner of the unit in condominium.
All real estate transactions in Thailand, any changes in the registration documents, could be made in the Land Office only, which is the state body responsible for making records on real estate, the registration of real estate rights and transactions.
** Despite the fact that the buyer and seller can meet in the Land Office and carry out the procedure of re-registration of property independently, AllPattayaCondos Real Estate Agency strongly recommends to involve the lawyers to the transaction, because only the lawyers can ensure the legality and purity of the transaction.