A condo unit is among the rare properties that foreigners can own freehold condo in Thailand. The purchase of condo, however, is also subject to some restrictions in accordance with the recently amended Condominium Act of Thailand. The principal provision of the Act pertains to the number of condo units which foreigners can own free hold in a certain condo development. The Act limits foreign ownership to 49% of the total units in a development leaving the 51% to local ownership. This becomes a problem for property developers as the domestic demand for condo ownership is not as high as the foreign demand. In the end, property developers can only lease the units to interested foreigners to maximize profit while keeping with the Condo Act at the same time.
The real estate business in Thailand remains unregulated although the Thai government over the years has been modifying age-old property laws and introducing new ones aimed at protecting the rights of property investors. The Thai real estate market is without a doubt flourishing and its contribution to the national economy is increasingly becoming more significant. At the same time, foreign investors demand protection of their real estate investments in Thailand. The Thai government seems to be acknowledging this challenge as evident from their response to improve standards of conducting real estate business transactions in the Kingdom. The use of a standardized property contract and the cracking down of wayward developers are just among their initiatives currently in place. It takes sometimes before the benefits of these standardization initiatives can be fully realized so for the meantime the property investor is advised to exercise caution or follow certain procedures when purchasing a condo or any property in Thailand.
Buying Process
Whether it's a new or a second hand development, it's wise to follow the following condo purchase procedures in Thailand.
1. The need for a reputable real-estate agent - the advantage of enlisting a reputable agent to find the property and negotiate the price with the seller on your behalf is difficult to ignore. It will save you a lot of hassles. There are a lot of agents in Thailand who speak both Thai and English and they shall be able to liaise in your behalf for the property being purchased.
2. Title Search - This is necessary to ensure that the condo is free from all forms of liens or any other encumbrances which may posit problems later on.
3. Review of Contract - The standard contract that the Land office may be in place but it's not comprehensive enough to accommodate all the necessary provisions in a purchase contract that you are wont to back home. In this regard, it's prudent to consult with a lawyer to do the necessary contract review.
4. Transfer of Property - This is done at the land office. If you enlist a law firm to assist you with your purchase, you may not need to appear in person anymore at the land office as this can be done by your representative in your behalf via a power of attorney.
Financing
The Condo Act requires that the funds used to purchase a condo or any property in Thailand is an off shore funds. Hence the necessity to present Foreign Exchange Transaction forms before the land office during the deed transfer. You can open a savings account in a Thai bank account and wire the required funds or you can also use an escrow agent as an alternative.
In regards to mortgage providers, currently, there are no banks in Thailand which offer mortgage for a condo purchase.
Condominium is among the most in demand form of property investments in Thailand. To be able to realize the benefits of this investment, it's prudent to ensure the legalities associated with ownership beforehand to avoid conflict with condo ownership laws later on.
The real estate business in Thailand remains unregulated although the Thai government over the years has been modifying age-old property laws and introducing new ones aimed at protecting the rights of property investors. The Thai real estate market is without a doubt flourishing and its contribution to the national economy is increasingly becoming more significant. At the same time, foreign investors demand protection of their real estate investments in Thailand. The Thai government seems to be acknowledging this challenge as evident from their response to improve standards of conducting real estate business transactions in the Kingdom. The use of a standardized property contract and the cracking down of wayward developers are just among their initiatives currently in place. It takes sometimes before the benefits of these standardization initiatives can be fully realized so for the meantime the property investor is advised to exercise caution or follow certain procedures when purchasing a condo or any property in Thailand.
Buying Process
Whether it's a new or a second hand development, it's wise to follow the following condo purchase procedures in Thailand.
1. The need for a reputable real-estate agent - the advantage of enlisting a reputable agent to find the property and negotiate the price with the seller on your behalf is difficult to ignore. It will save you a lot of hassles. There are a lot of agents in Thailand who speak both Thai and English and they shall be able to liaise in your behalf for the property being purchased.
2. Title Search - This is necessary to ensure that the condo is free from all forms of liens or any other encumbrances which may posit problems later on.
3. Review of Contract - The standard contract that the Land office may be in place but it's not comprehensive enough to accommodate all the necessary provisions in a purchase contract that you are wont to back home. In this regard, it's prudent to consult with a lawyer to do the necessary contract review.
4. Transfer of Property - This is done at the land office. If you enlist a law firm to assist you with your purchase, you may not need to appear in person anymore at the land office as this can be done by your representative in your behalf via a power of attorney.
Financing
The Condo Act requires that the funds used to purchase a condo or any property in Thailand is an off shore funds. Hence the necessity to present Foreign Exchange Transaction forms before the land office during the deed transfer. You can open a savings account in a Thai bank account and wire the required funds or you can also use an escrow agent as an alternative.
In regards to mortgage providers, currently, there are no banks in Thailand which offer mortgage for a condo purchase.
Condominium is among the most in demand form of property investments in Thailand. To be able to realize the benefits of this investment, it's prudent to ensure the legalities associated with ownership beforehand to avoid conflict with condo ownership laws later on.
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