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Buying Condominium
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Buying Condominium

Thailand real estate is booming. Most foreigners when deciding to purchase real estate in Thailand look at purchasing a condominium. It would be safe to say that most foreigners buy real estate in Thailand either for retirement or as a property investment.  There are a number of factors to take into consideration when buying real estate in Thailand . Consider the following factors such as those listed in the most common Thailand real estate pitfalls , Thailand real estate problems . Also view the Thai property market outlook . Also take into consideration the costs of your property transfer taxes and Thai title deeds and Thai property taxes . Thailand real estate has been in a boom phase for the last few years and we have written extensively on the subject of buying a condominium in Thailand here.

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 . Always make use of registered lawyers in Thailand and 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 FAQ when you start your search for Real Estate in Thailand , be it in Bangkok , Pattaya or Hau Hin. Be aware that many of the problems that do arrise 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 need to read the Real Estate pitfalls in Thailand when going out on your search. Ask the right questions to avoid costly litigation.

 

condo thailand

STEP 2 : CONSULTING A LAWYER IN THAILAND

 

Buying any Real Estate in Thailand be it a house or a condo always 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 . They would do a title search and check the contracts before signing.Also note the type of Title Deeds in Thailand . If 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 for your condominium and 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 .

 

condo mortgage bond

STEP 3 : MORTGAGE BONDS IN THAILAND FOR FOREIGNERS

 

Each year many people come here to enjoy their holidays in the comfort of a second home, their most treasured property investment in Thailand . Many were smart enough to have anticipated the immense benefits of property investments in Thailand perhaps in their first or second visit in the country. See the excellent articles on Financing for Foreigners in Thailand . Obtaining a mortgage bond by a foreigner is possible in Thailand . 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 at their Singapore branch.  The home loans they provide to foreigners are based in foreign currencies. You home loan / mortgage bond would be provided in either Japanese Yen, Euro or Dollar based. 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.

 

FAQ

How is a Condominium defined by Thai law?

According to the Condominium Act B.E. 2522 (A.D. 1979), a condo is defined as a building that can have its separate portions sold to individuals or groups for personal property ownership.

What classes of foreigners may purchase condominiums in Thailand ?

Foreign investors as well as other foreigners may own condos in the Kingdom of Thailand under certain circumstances.

What types of Condominiums are available for foreigners to purchase?

Certain condo buildings allow for foreigners to purchase condos in free hold (fee simple). The condo buildings are located in specified metropolitan areas and may have limits on the amount of units available for sale to foreigners.

What are the requirements for a foreign individual or organization to purchase a condominium in Thailand ?

In order to purchase a condominium certain requirements must be met, for example:
1: A foreigner has permanent residence in Thailand in accordance with Thai Immigration Law, or
2: A foreigner is allowed into or resides in Thailand in accordance with Thai Investment Promotion Law, or
3: A foreign legal entity is in accordance with the Announcement of the Foreign Business Act BE 2542 (AD 1999), and has been granted an Investment Promotion Certificate in accordance with the Investment Promotion law, or
4: A foreigner or foreign legal entity who brings foreign currency into Thailand, or brings in Baht currency from the account of a person residing abroad, or uses foreign currency from their deposit account. This requirement is normally met by the presentation of a Dor Tor 3 form which is provided by the bank receiving an incoming remittance from abroad.

Are there any restrictions to this ownership?

In many areas of Thailand a foreigner or foreign legal entity can acquire up to, but not exceeding, 49% of the total floor area of the combined condo units. However, more that 49% of ownership may be allowable in certain condominium buildings in Greater Bangkok and various other municipalities and districts according to Ministerial Regulations.

What is the most typical way for a foreigner to purchase a condominium in Thailand ?

Most Foreigners purchase a condominium by showing evidence of an incoming remittance of foreign currency into their bank account from abroad as demonstrated by a valid Dor Tor 3 form from a Thai Bank.

Can ownership of a condominium be inherited by a foreigner?

Property ownership of a condominium can be inherited if the heir to ownership meets one of the original criteria for foreign ownership. Otherwise the condo must be sold within one year of inheritance. Similarly, inheriting ownership of more than 49% of total condominium floor area must conform to certain regulations, namely that the condo not occupy more than 5 rai, that it not exist outside of Greater Bangkok or other designated municipalities, and that it has at least 40 units in a building registered for at least one year.

Is a lawyer necessary to purchase a condominium in Thailand ?

A lawyer is recommended to review the documents concerning the condo and to supervise the transfer.

Are condominium long-term leases available?

Yes. Condos may be leased to foreigners for periods of up to 30 years and may have options to renew. Leases of greater than 3 years are required to be registered with the Land Department.

 

JWS Consulting Company Limited

99 / 19 Moo1, 2 nd Floor, Praphuket Road, Kathu, Kathu, Phuket 83120 Thailand

Tel : +(66) 076 304 400 Fax : +(66) 076 304 401
Hotline : +(66) 084 746 3838
Email : info@jwsconsulting.co.th

 

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