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How to buy a house or condominium in Thailand
Are you considering buying a house, Condominium or Villa in Thailand? Not certain of the procedure, with this article you will find a breakdown of what the procedure is to buy a property or any real estate here in Thailand.
Select a reputable Property agent
When looking for a property in a foreign country you will require expert local assistance. The Agent knows how to communicate in Thai and will be familiar with all the local areas. The agent will save your valuable time in selecting properties that fit with the criteria and price range you are looking for, then showing you properties in your price range that meets your requirements.
Purchasing direct from a developer and not using a agent does not mean you will save money, comared to buying a property from a agent condominium or house purchase are the same.
A genuine house or condominium for sale will a have a fixed price by the seller, the main benefit of using a reputable agent is that the will act on your behalf and liaise between you and the seller. The agent will act on your behalf to obtain a fair price for YOU and act on your behalf to look out for your interests as the real estate buyer throughout the whole process of the property purchase.
Always consider the legal obligations before making the purchase as you are likely to be spending a large portion of your savings on the purchase sit down with your agent and go through all the steps that are required when purchasing a property as the rules and regulations are different when purchasing a house or condominium. If you are using a reputable agent to assist with your and you would like legal representation they will have Lawyers and solicitors they have used in the past for House or condominium purchasing and transferring of ownership of the property.
Laws and regulations in the Thailand real estate market do vary depending on the type of property you are buying. In Thailand a none Thai national may own a condominium and register at the land office in their own Name and solely their own name on the Chanote (title deed), If a none Thai national wishes to buy land for the purpose of a house construction or purchase land with a house already constructed then the none Thai national should obtain a long term Lease on the land, initial land lease are for a term not exceeding 30 years. The none Thai national should apply for the construction permit to construct the house or villa in their own name, this way the none Thai national owns the house with a long term lease secured on the land. Securing a long term lease is the most common and legal way for a none Thai national to have the option of land in Thailand.
Land title checks
A comprehensive detailed check of title deed at the Land Department should be done. You need t o be 100% sure that the Seller has clear and legal title of the land before you enter into a contractual agreement between the buyer and seller.
The Land title search will do a background check back to the first and original owner of the land to its first ownership. It will reveal any registered interests on the land such as mortgages, loans ETC. This investigation will also verify the right to access to your property you are in the process of buying; the residential zoning, environmental and planning codes applicable in the area It is a good idea to make sure that you can build a structure on the land and checks for any possible clauses or regulations which could stop the construction of a residential property.
Deposit for house or condominium purchase
When you are confident that you have found the right house or condominium or even land, you will be asked to by the seller to make a deposit as a show of good faith and intentions to purchase.
In return the seller will agree to reserve the house, condominium or land for you for a specified time period and will draft the purchase agreement for your purchase. Unless specific!!Get out!! Clauses are written into the contract for example subject clear title deed or subject to contractual terms!! The deposit is none refundable!!
Contracts or purchase agreements
If the seller is drawing up the Purchase agreement for you, it is highly recommended that you have the contracts terms and conditions inspected by a third party to make sure the contracts are fair to both the buyer and the seller, if you are using a reputable agent they will have purchase agreements that should be fair to both buyer and seller.
Rule of thumb read the contract thoroughly in the presence of both seller and buyer and agent if anything does not feel right do not sign seek legal advice with your agent. This is another reason to use a reputable agent as he will have read many different contracts and will advise you for your safest way to proceed.
Over time rules and requlations do change we do try to resaearch all questions before we reply, Please feel free to contact our support team for up to date answers to any questions regarding real estate in Thailand
Q who can we contact for more information
For any further information on property in the Thailand real estate market please feel free to contact us anytime Thailand house and condominium Tabien Bahn . We offer free and impartial advice on all topics concerning the real estate market specialists in Pattaya Jomtien and the surrounding areas.
(Q) IF Tabien Bahn IS lost stolen or defaced can I apply for a new one?
A; YES you may apply for a new Tabien Bahn report the missing Tabien Bahn to the nearest police department and receive a report, at your local district office they will issue a new Tabien Bahn for a minimal fee.
(Q) ARE Tabien Bahn issued only in the official owners name?
A; No you have the right to leave the Tabien Bahn blank or register another person’s name on the Tabien Bahn, in the future however if you decide to sell the house or condominium then you will be liable to pay 3.3% business tax if no name has been registered on the house or condominium.
(Q) Will I have any legal responsibilities’ to full fill?
A;Yes if you are registered on the Tabien Bahn as the Property owner you are required to fulfill legal obligation’s such as, when there is a birth at the house or condominium either of the parents or the person who is on the Tabien Bahn must register the birth with-in 15 days. If there is a death in the property this has to be registered at the district office and to the local police department with-in 24 hours. When someone moves-in or moves out of the house or condominium you must inform the local district office with-in 15 days.
If you plan to demolish a house then you have to inform the district office and apply for a demolition permit, a construction permit must be processed before construction of a new house, and after construction with-in 15 days you may apply for a new house number.
(Q) May a person own more than one property House or Condominium in Thailand?
A; Yes A person may own more than one house or condominium in Thailand, but can only have their name on one Tabien Bahn which is there principle residence which they are allowed to have registered.
(Q) May a minor be registered on the Tabien Bahn?
A; YES A minor may be registered on the Tabien Bahn so long as a Thai Partner or Thai guardian is registered with the minor at the Property address.
(Q) Are the rules and regulations the same all over Thailand?
A; Yes all provinces and cities have the same Tabien Bahn, Bangkok, Phuket, Koh Samui, Pattaya, Jomtien, Chang Mai, Rayong, Bangasray ETC
(Q) What is the difference between the house registration book for a condominium and registration book for a house?
A;The house registration book is the same for a condominium as it is for a house, the application procedure is also the same, the one difference is that it is stated if house or condominium.
(Q) How do I change from one Tabien Bahn to register another?
A; Easiest way to change your Tabien Bahn is to have both changed at the district office which has jurisdiction over the new house or condominium you are moving in to, with the age of technology upon us this can now be done with-in a day as all district offices have on line facilities.
(Q) May the Tabien Bahn be used for mortgage collateral?
A; No Tabien Bahn may only be used as proof of address only title deeds may be used for collateral.
(Q) Does the Tabien Bahn confirm property ownership?
A; No the Tabien Bahn may or may not have the real name of the official owner of the House or condominium, This document only verifies the house number and details of the persons residing in the specific house or condominium and is not valid for proof of Real estate ownership. Ownership of the house or condominium is verified by the land title deed.
What is Tabien Bahn
A; The house registration or Tabien Bahn More commonly known as the blue book is official document that is issued at the local municipality or district office to Thai Nationals and None Thai Nationals (Foreigner’s / Farang ), owning a residential property here in Thailand (The Land of SmilesJ) as proof of a person’s permanent legal Address, and voting district for Thai Nationals.
Q what is the benefit of using a Real Estate Agent ?
A; When times are tough most people are looking to cut costs to save some money. In a home purchase, who wouldn't want to save the extra 3 percent of the sale price? That's typically what a buyer's Agent will receive on a real estate purchase, and most experts agree it is money well spent.
The fact is that anyone can look for a house or condominium or even land, and even get a look inside, without formally signing on with a real estate agent. But unless you have plenty of time to drive around and search for properties for sale, a reputable agent should be able to find and match you with the perfect house or condominium that is for sale much faster.
Let’s Say you require a indoor or outdoor swimming pool. Or don't want a swimming pool at all. Maybe you want a gated plot of land for the family pet or playroom for the children. If you're looking for something specific, Reputable Real estate specialists are the people whose job it is to know if there's a house or condominium that fits the criteria you are looking for,
Lets not forget if you are using a reputable agent this is going to save you valuable time as the agent travels around the areas on a daily basis so if you are looking for Central Pattaya or surrounding areas such as Jomtien East Pattaya, Naklua, Wongamat, Huay Yai. Bangsaray, Sattahip to travel to all theses areas looking will take a lot of time where as your agent after listing to what your requirements are for a house or condominium will be able to advice which area is suitable for your property purchase.
In the house or condominium purchase process, they will hold your hand throughout the property purchase. This may be your first property purchase either house apartment or condominium The Real Estate Specialist are doing it day in day out , so why not use the knowledge they have picked up over the years to your benefit. The 3% will be a saving and not a cost in the long run.
Q What is a debt free letter?
A; This document is required when selling a condominium as the name suggests it is a letter that is issued by juristic manager of the condominium project to show there are no outstanding debts on the condominium such as unpaid bills, Maintenance fees arrears ETC, This is the responsibility of the owner to arrange for the debt free letter.
It is a must to get the debt free letter as the transfer at the Pattaya land office cannot go ahead without the condominium debt free letter.
Q; What are sinking funds on condominium project and what purpose do they serve?
Sinking funds are generally only on new Condominium or house projects or when purchasing off plan condominiums or house and is a one of Payment,
Purpose of the sinking fund to generate a reserve fund for to cover the costs of none routine maintenance of the condominium or housing project, structural damage or repairs, and replacement of the communal areas or infrastructure,
This money may only be used if agreed by the condominium or house association by a voting method with all co owners, As the condominium or house village ages then the sinking fund may occasionally have to be topped up.
Q What are maintenance fees on a condominium, and what do they cover?
A; Maintenance fees are for the common areas upkeep such as swimming pools, gardens ETC of the condominium project or any shared community expenses such as Security guards, Elevator’s, Gymnasiums ETC, The cost of condominium maintenance fees vary from project to project, If purchasing in a new condominium project or of plan then the maintenance fee amount will be in the sales agreement, if purchasing resale it is easy to find out the amount by asking the seller, your Agent or the Juristic body at the condominium building you are buying.
Q Can I buy a condominium in my name as a foreigner?
A Yes Buying a condominium in foreign name is the easiest way to purchase for none Thai nationals, as per the condominium act of Thailand there must be 51% of the condominium building must be in Thai name.