DOCUMENTS AND PROCEDURES FOR BUYING A CONDO IN THAILAND
Having plenty of great offers for buying a condo in Thailand, an investor may be puzzled about the documents and procedures needed to make a deal according to the government regulations. If interested in this type of residential property, the most common choice is purchasing a freehold unit.
By Thai law, foreigners can’t exceed a total of 49% ownership of the entire condominium building. All units selling by Angel Real Estate (ARE) are under foreigner’s quota. Consequently, there’s no risk of such an issue arising in any project introduced by us to the investors.
RTM vs Off-plan
When buying a condo unit, the investor has two options: ready to move (RTM) or buying off-plan (before or under construction).
After deciding which project to pick, RTM means your condo is ready to be used. You expect to have all the facilities operational, as well as the amenities and appliances your unit has built-in. If buying for investment purposes, you are ready to make a profit from your asset by putting it into the rental market. Angel Real Estate (ARE) services include condo and rental management for Thai and foreigner buyers. Some projects grant a fixed yield for a period that can go up to 5 years.
Buying off-plan has become a popular choice since investors need to pay less sum of money at once. The first stage of the purchase procedures comes with the condo quotation or reservation form issued by the property developer. Once the buyer receives it, the booking must be done through a specified fee. After the property developer received the booking fee, an official receipt will be issued to the buyer as a guarantee the money was received. Therefore, the property developer will issue the SPA (Sale and Purchase Agreement) to the buyer.
Any project through us is already certified; hence, relevant documents will be available. Having all in order, the customer subscribes the SPA and makes the 30% down payment within one month.
Our services include checking the defects of the unit, and after the replacements are done (if any needed), the customer shall pay the remaining 70% of the total purchase. After paying all, the property developer will issue the condo’s title deed for the Land Department registration.
The documents needed to transfer the condo’s ownership to a foreigner buyer are as follows:
- Valid passport
- Evidence of money transferred from abroad to the value of the condo (Foreigner Exchange Transaction Form or a credit note). The money should be transferred from abroad in foreigner currency. This is not applicable if the foreigner buyer has Thai Permanent Residence, which allows purchasing in THB without the use of Foreigner Exchange Transaction Form.
- Marriage/divorce certificate (if applicable).
- Power of attorney, if you want to authorize another person to act on your behalf, in Thai script with a notarization by Notarial Public of overseas by the Thai embassy or consulate.
- Certified copy of the I.D. cards of the persons giving authorization and the authorized persons.
Note that all documentary evidence should not exceed 30 days of validation.
Another way to enjoy a condo in Thailand is through a leasehold agreement. Generally, it’s not a popular choice, but if a project is set in a special or prime area, considering the land and property value, it may worth the investment.
Leasehold is usually available when a foreigner quota exceeds a total of 49% ownership of the entire condominium building. The contract between the lesser and the lessee stipulates the lease period, which can’t exceed 30 years. A clause can be added, having the owner’s promise to renew the lease upon expiration of the first term. The lease agreement must be registered at the Land Department.
If you need any further help or want to have a chat with us, please feel free to write an email to daniel.O@angelrealestate.co.th. We will be more than happy to discuss and support your international real estate investment.