Thanks to the high quality of its real estate developments, potential returns yield and attractive prices, Thailand continues to attract foreign investors on a large scale. But to acquire your dream property or investment under the safest conditions in the country of smiles, it is important to know the market you are entering, what the best developments in a given area are and especially to be well advised on the pitfalls that may lay before you and how to avoid them. This is where Five Stars Property can be of service to you.
Below is a brief summary of the process on how to buy a property in Thailand and approach your purchase in the best way.
1. Legal Assistance
As there is no notary in Thailand, it is strongly recommended to engage a legal advisor specializing in real estate transactions, there are many to be found in all parts of Thailand who speak English and most other European languages which is important in order to understand what steps to take. An initial appointment will provide information on how to acquire property and transfer fees and taxes on the gain at the time of resale of the apartment. Please inquire with us and we can put you in contact with a legal representative.
2. Open a bank account in Thailand
To buy an apartment in your own name, it is advisable to hold a personal account in a bank in Thailand to facilitate payments with greater transparency and especially get bank certificates which will then be necessary to proceed with the transfer of property and releasing the funds back out of Thailand in the future. Please note that it is also possible to transfer funds for payment of a property directly from your account in your home country directly to the Developers account if you wish to do so in the case you are buying a brand new property directly from the developing company. In most case you will be responsible for the differentials in exchange rates and transfer fees.
3. Choose the apartment
Once the legal issues are clear to you, then comes the work for us, the realtor. After an initial consultation with you to define the search criteria or information about a type of property or neighbourhood that best suits your requirements, we would then prepare a selection of apartments or properties for your consideration and organize and accompany you on an initial visit.
4. Negotiation and compromise sale
Upon finding the right property for you, the buyer submits an offer price to the owner/developer with our, the realtors guidance. The amount varies depending on the negotiations of the property (new or old) and hovering around 3% in general realistic terms and/or as part of negotiations free items or extended payment terms may be negotiated instead or as well as a discount of the purchase price. After confirmation of the sale price, we the real estate agent, in collaboration with legal counsel (if engaged) conducts the following checks:
-The identity of the owner as indicated on the property title deed. Any costs encumbered in title.
- The quota units may be held by a stranger in the building.
- The fees payable upon the transaction-If the owner is current with condominium fees if the viability of the property is confirmed, then it is necessary to prepare a sale agreement in which will be described including the payment terms, the share of transfer fees and other conditions agreed between the seller and the buyer. Under the compromise, in practice it is required the buyer to pay a deposit of 3% to 5% depending on the selling price on the date of signing to book well. The real estate agent is then ready to track payments between two parties represent the buyer in the land at the date of transfer of ownership.
5. Transfer of funds
During an initial acquisition of property the buyer does not need a permanent residence permit in Thailand, however it is imperative that the funds used to buy a freehold property come from abroad or that evidence is available that the funds used to buy the property initially came from abroad as this is a requisition of the local land authorities when buying freehold property in Thailand.
Once the funds are credited to your or the developers account in Thailand, it is necessary to ask your bank (or the developers bank) for a document entitled "Foreign Exchange Transaction Form" (formerly called "Tor Tor 3"), this is a document that allows the local land authorities to see that the funds used have been brought into Thailand from abroad and if in the future you wish to sell your property, these documents will also assist you in taking the money back out of Thailand. It should be noted that each transfer made for such acquisition of property must be in excess of $ 50,000 to obtain the Foreign Exchange Transaction Form.
6. Transfer of title
The transaction, and the last installment take place in Thailand at the local (to the region/province you have made a purchase in) land office, where it is recommended to prepare a bank check. It usually takes half a day to sign over the ownership, the buyer can instruct the agent or legal counsel to represent him in this final step if they are unable to make it to Thailand at this time, this can be done with a simple Power of Attorney (P.O.A) agreement.
For additional questions on how to buy a property in Thailand, contact the real estate agency Five stars today by email: firstname.lastname@example.org or by phone: 081 271 7155
With over a hundred transactions made successfully since its inception in 2005, Five Stars Property provides its customers with experience and knowledge of the real estate market in Thailand making sure you get the best and safest deals to be found.