It is a well know that the property law in Thailand has certain restrictions for foreigners. Nevertheless, under the Law in Thailand, the foreigner is not restricted to own the condominium as long as the foreigner does not buy over 49% of the total units. During more than a decade H&P Bangkok lawyers assisted foreign clients in sales and purchase of condominium units in real estate in Thailand. Based on our experience we would like to emphasize the importance to hire a lawyer to support all the transaction involving condos in Thailand including:
EVIDENCE OF PAYMENT
The key documents required by the Land Department when you transfer the ownership is the evidence that you have transferred the foreign currency to Thailand. The FET is key in order to prove the purchase and be able to remit funds abroad when you sell the condo. The amount of money should be equivalent or more to the purchase price. This document must be issued by the bank in Thailand, showing the purpose of the transfer and the amount of foreign currency.
REVIEWING OF SALES AND PURCHASE CONTRACTS OF CONDOMINIUMS
In most of the cases, the seller will make you sign the reservation agreement before the purchasing agreement. You should carefully review the terms and conditions under all agreements. Especially when the condo is still under construction. The importance of consulting a property lawyer in Thailand to assess and clearly understand your rights is key, specially in case you may need to claim the damages or return your reservation amount from the seller, agent or developer.
TITLE DEED SEARCH
This process may not be necessary if you buy the condo from the developer. But it should be done if you buy it from someone else to ensure that the property is free of any encumbrances.
The lawyer in Thailand can conduct a legal due diligence and check this information at the Land Department in Thailand.
Once you have made the decision to purchase the property in Thailand. The last step to legally own the property is to register the purchase agreement at the land department for ownership transfer. The fee is approximately 2% of the purchase price and depends on your agreement with the seller to determine who will pay the fee.
RENTAL OF THE CONDO IN THAILAND
Of course, as the owner you can rent your condo unit to tenants in Thailand. But it must be only the monthly rent since the daily rental of condominium is illegal in Thailand. The rent of less than 30 years is not required to register at the Land Department.
If you need to talk with a Thailand Property Lawyer, please contact H&P at [email protected]