How a Foreigner Can Legally Buy a Condominium in Thailand

In the previous 15 or so years, buying a condominium in Bangkok has develop into all the trend with international actual property buyers and people simply wishing to calm down in the Thai capital. A non-Thai nationwide can legally have a freehold possession over one or a variety of condominiums in the Kingdom. However, there are particular circumstances that should be met in order for a foreigner to personal a condominium in Thailand.

Foreign Ownership Explained

Overall, the acquisition of a condominium unit is a pretty easy and simple course of as soon as you realize the proper procedures to comply with. Additionally, there is no such thing as a possession restrictions on the time of writing primarily based on both nationality or particular visa classes. In truth, each foreigner who can enter Thailand legally can purchase and personal a condominium outright, and it’s the goal of this text to interrupt down these procedures in a simple to grasp format.

Thai Condominium Act of 2008, ActB.E. 2522 (1979)

If you might be a first time purchaser and never but conversant in native property legal guidelines, then this breakdown will aid you to develop into acquainted with the Thai Condominium Act of 2008 (amended), which units down the principles and laws that need to be adopted.

Here is a “temporary” abstract of those necessities, although different restrictions are relevant:

  • Foreigner has entered Thailand legally
  • Freehold possession of condominium unit when constructed on a land of lower than 5 rai
  • Laws pertain to sure initiatives in municipal jurisdictions of the Kingdom
  • Condominium models owned by a foreigner can’t exceed 49% of the whole venture

The Sale and Purchase Agreement

A typical sale and buy settlement between the events will embody the next six factors:

  1. The exact particulars of the condominium unit being bought
  2. The precise particulars of the events concerned
  3. The agreed value, cost schedule, and deposit if relevant
  4. The switch date of the condominium on the Land Office in Bangkok
  5. The obligations for all switch charges and any taxes
  6. The warranties of each vendor and purchaser, and any issues regarding due diligence

The Financial Transaction

Under the Condominium Act 2008, relating to non-residents of Thailand, those that buy condominium models in the Kingdom should remit all monies to pay for the unit(s) from abroad to the total worth of the property. The purchaser will then have to get a Foreign Exchange Transaction certificates (TT3 or Thor.Tor.3) for every cost from the recipient financial institution. In order for the foreigner to register the condominium, these certificates then need to be proven to the Thai Land Department in Bangkok.

Payment “should” be transferred into the nation as ‘international foreign money’ and never in Thai Baht.

For transfers, the Thai banks will solely present a ‘Foreign Exchange Transaction’ certificates for quantities over US$ 20,000. For lesser quantities, the financial institution will challenge a credit score notice. This credit score notice will also be introduced to the Land Office in Bangkok for registering the condominium, but it surely should include a affirmation letter out of your Thai financial institution.

What if You Don’t Have a Thai Bank Account?

If you don’t have a checking account in Thailand, then you may remit the funds on to the proprietor of the condominium you might be shopping for, or to a third celebration account, corresponding to a Thai Lawyer or different legally registered consultant in the nation.

However, we extremely suggest that you simply switch the funds on to your personal checking account right here in Thailand when attainable, after which receive the Foreign Exchange Transaction Certificate from the financial institution’s head workplace in the capital. All condominium associated certificates and/or credit score notes and receipts, must be saved safely, together with any letters/documentation from the Thai financial institution, till the possession of the condominium unit has been efficiently transferred.

The Payment Procedure

To receive a Foreign Exchange Transaction certificates in Thailand from a Thai Bank, you’ll have to be sure that the next 4 directions are adhered to:

  1. The title of the remitter should be the identical because the purchaser of the Bangkok condominium (as indicated in the S & P settlement). Please fill in full title and handle of remitter and the beneficiary.
  2. The cash is transferred as international foreign money. Do not convert in Thai Baht earlier than making a switch. The conversion will likely be finished by the beneficiary financial institution in Thailand.
  3. Please point out in the switch directions that the aim of the switch is ‘To buy a Bangkok condominium, unit No X, on the: (title of the condominium constructing)
  4. Please point out abroad and beneficiary prices for every cost.

Reference to level 3 above: It’s vital that you simply use the precise wording in order to keep away from any misinterpretation by the Land Department of Thailand. For instance, the phrase “house” (a time period regularly used in different nations), has a completely totally different that means from “condominium” in Thailand.
The Transfer of Ownership

Prior to the switch of possession, you’ll be knowledgeable of the whole quantity due, together with any minor facilities or utility deposits. The following two directions should be adhered to:

  1. If the ultimate cost is NOT financed by a financial institution, then this quantity must be remitted into Thailand precisely just like the earlier funds.
  2. If the ultimate cost IS financed by a financial institution, then this quantity must be paid by a cashier’s cheque which is able to then be exchanged with the Thai condominium’s title deed on the date of switch of possession.

The Conclusion

As with most bureaucratic procedures and huge monetary transactions, there’s extra to do than our temporary article outlines. However, with the assistance and steering of a good authorized consultant, the acquisition of a Bangkok condominium unit is a pretty painless process. This is one thing that’s mirrored by the sheer numbers of international condominium homeowners in the Thai capital and different municipal jurisdictions across the nation.

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