Buying a condominium in Thailand is a relatively straightforward process for foreigners compared to buying other types of property. Here's a breakdown of the steps involved and essential things to consider:
Eligibility
- Foreigners can directly own condominium units in Thailand.
- The main restriction is the Foreign Ownership Quota: a condominium building can only have up to 49% of its total unit area owned by foreigners.
The Buying Process
- Find a Property: Search listings with reputable real estate agents or property portals. Consider factors like location, amenities, developer reputation, and resale potential.
- Due Diligence: Have a lawyer investigate the condominium building, the title deed for the specific unit, and the developer's background.
- Reservation Agreement & Deposit: Pay a small reservation deposit to secure your chosen unit and agree on a price with the developer or seller.
- Sales & Purchase Agreement: A detailed contract outlining the terms and conditions is signed by both parties.
- Transfer of Funds:
- You'll need to transfer the purchase funds from overseas to a Thai bank account.
- The bank will issue a Foreign Exchange Transaction Form (FETF), which is crucial for registering ownership.
- Land Department Transfer: The formal transfer of ownership occurs at the Land Department with payment of relevant fees and taxes.
- Condominium Juristic Person: Upon ownership, you'll become part of the condominium's Juristic Person, responsible for building management and common area fees.
Important Considerations
- Fees and Taxes: Include transfer fees, taxes, and potential sinking fund contributions in your budget.
- Foreign Ownership Quota: Verify with the Land Department or the developer that foreign ownership is still available in the building.
- Leasing your condo: There might be restrictions on your ability to rent out your condo, especially for short-term rentals.
- Property Management If you don't live in Thailand full-time, consider a property management company to handle rentals and maintenance on your behalf.
- Resale: Be aware of potential restrictions for reselling your condominium within a certain timeframe.
