Buying Thailand property, condominium or real estate.
How to Buy Property in Thailand
Wanting to buy a villa, house or condominium in Thailand but not certain as to how this is done. Well here you will find the basic break down of what needs to be done and how to buy property or any real estate in Thailand. If you have any questions then speak to us online or at any of our offices in Thailand.
SELECT A PROPERTY/ REAL ESTATE AGENT
Since you will be looking for property and real estate in a foreign country you need expert local assistance. The agent knows how to communicate in Thai and they’re familiar with the geographical area. The agent will save you valuable time in selecting and showing you the property in your price range that meets your needs. We can honestly say that purchasing directly from the developer isn’t going to save you money versus buying it from agent. A quality property for sale in Thailand is generally offered at a fixed price by the Seller. The best benefit of using a property/real estate agent is that they will act as a liaison between you and the Seller. They will obtain a fair price for you and act on your behalf to represent your best interests throughout the entire process.
Before you sign any deposit agreement or contract, you should sit down with a lawyer or solicitor to discuss the legal process. You need to know the correct legal process in Thailand for the foreigner to acquire property. Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. We are not a lawyer but we offer free legal information to potential property and real estate buyers. You should get the legal facts of the property/real estate and contract laws in Thailand before you deposit any money.
A comprehensive examination of title deed recorded at the Land Department should be done. You need to verify that the Seller has clear and legal title of the land before you enter into a contractual agreement. The title search will trace the land to its first possession. This investigation will also verify the right to access to your property; provide the residential zoning, environmental and planning codes in the area and show any registered mortgage or liens on the land. It is a good idea to make sure that you can build a structure on the land.
When you feel satisfied with the property, you will be asked to make a deposit to show your good faith to continue the process. In return, the Seller will reserve the property, condominium or real estate for you and start the process by drafting the contracts for purchase. Unless you write specifically a “get-out” clause in the deposit agreement, for example “subject to clear title” or “subject to agreement on the contract terms,” the money deposited is non-refundable.
REVIEW OF CONTRACTS
Now you are ready to proceed to acquire the property, condominium or real estate upon verification of a clear title. The Seller will have the contracts prepared for you. Since the Seller will write the contracts, it is highly recommended that you have a lawyer or solicitor review the terms and conditions. First, you want protection for yourself should there be a delay in the property being built. A proper remedy should be stated in the contract. Second, the Seller will state a penalty if you are late with your payment. This should be fair and reasonable to both parties. Finally, your payment schedule should be reasonable and practical. Normally, a first payment is 25 percent. Thereafter payments are made on a progressive basis: 25 percent when the roof is on, 25 percent when the door and windows are secure; and 25 percent when the fixtures and fittings are completed.