Buying property in Thailand requires careful planning and attention to detail. When looking to purchase real estate in Thailand, here are a few common considerations:
- Options for Owning Real Estate: While foreigners in Thailand are typically not allowed to acquire land, they are able to own buildings and condos directly. The fact that foreigners are allowed to own up to 49% of a building's total floor area makes acquiring a condominium unit a popular option. Another option could be to think about establishing a Thai business to keep the property or entering into long-term leasing agreements. Before deciding on an ownership structure, it's wise to research the potential legal ramifications and get advice from an attorney.
- Performing comprehensive due diligence is essential to guarantee the property satisfies all legal requirements, has a clear title, and is free from encumbrances or other legal difficulties. Among these tasks is the examination of all applicable licenses and permissions, as well as the verification of the property's ownership history and a survey of its boundaries.
- Recruiting Experts: Hiring an experienced attorney who focuses on Thai real estate transactions is a wise decision. They are able to evaluate contracts, do due diligence, and help you comply with local rules, among other legal services. In addition, finding appropriate properties and negotiating deals can be aided by collaborating with a trustworthy real estate agent who is well-versed in the local market.
- A legally enforceable contract between a buyer and a seller is the sales and purchase agreement. The purchase price, payment schedule, property description, and any stipulations should all be laid forth in the document. To safeguard your interests, it's wise to have a lawyer prepare or review the agreement.
- To make sure you are paying a fair price, it is vital to conduct a property valuation before getting financing. Thai banks and credit unions do provide financing to eligible buyers, albeit it may be difficult for foreigners to get a loan. For further information on property financing alternatives and requirements, it's recommended to contact local banks or mortgage brokers.
- Ownership Transfer and Tax Considerations: A trip to the local Land Office is required to finalize the transfer of ownership and settle any applicable taxes or fees. In most cases, the buyer and seller will each pay a portion of the transfer fee, which is based on the property's assessed value. Depending on the details of the deal, additional levies and taxes including stamp duty, withholding tax, and specific company tax could be due.
- Following the completion of the transfer, the Land Office will issue a new title deed reflecting the buyer as the registered owner and amend the property's ownership records. You should keep this updated title deed in a safe location because it is proof of ownership in a legal sense.
It's worth noting that, based on aspects like location, property type, and individual circumstances, the procedure and prerequisites for purchasing real estate in Thailand can differ. To guarantee a smooth and legally compliant home acquisition, it is essential to speak with a legal specialist or a trustworthy real estate agent that is knowledgeable with the local legislation and processes.
