As a foreigner, searching through all of the available condos for sale in Thailand can seem daunting, but thousands of foreign nationals have successfully bought and sold condos since the Thai government first made it legal 30 years ago. Along with some cash, a little know-how is all it takes to purchase your dream condo in Thailand.
What type of housing?
It’s not currently legal for foreign nationals to own a detached house, townhouse or anything “landed” in Thailand. If you’re set on a house, the only option is to put it completely in a Thai national’s name, which effectively means that they would be the sole legal owner of the property even if it were bought with your money. Once you’ve made a decision to move forward with a condo purchase, Thailand has no shortage of real estate agencies to help find the perfect one for you.
Off-plan or outright purchase?
In short, an “off-plan” sale means that the buyer puts down a small deposit on a condo that is yet to be completed by the developer, with gradual payments made over an agreed period of time. The buyer generally pays less than they would for a finished condo, but they also take on some risk and do not get to see the condo first-hand before committing. While off-plan sales usually go through without a hitch, a developer’s personal financial issues or a global financial crisis could turn into a major headache for the buyer. Thailand is no stranger to property developments that were abandoned before completion.
Exchange rates and taxes
As all condo sales to foreigners require that funds be brought into Thailand in a foreign currency, it’s worth keeping a watchful eye on the exchange rate. Before committing to a purchase, be sure to look into property taxes so that you’re not taken by surprise down the road. This lead up period is also a good time to open a Thai bank account.
Where are you at?
If you’re not physically in Thailand during the pre-purchase process, you must sign over power of attorney to someone you trust. Real estate agents and lawyers can take on this role, but it’s necessary for the actual buyer to be present for the final transfer. You do not need to be a long-term resident to purchase a condo.
How about financing?
Though Bangkok Bank and United Overseas Bank (UOB) offer financing to foreigners residing in Thailand, acquiring financing for a condo purchase is generally difficult. This can even hold true if you have a stable job or business and are a permanent Thai resident. Many foreigners successfully acquire financing from banks in their home countries.
Preparing for the purchase
Once your dream condo has been found, it’s time to take a step back and ask some important questions. Are there any restrictions in the building’s by-laws that could cause you problems down the line? Is the building managed (or being developed) by a reputable company? Are the Common Area Fees (CAM) or any sinking fees clear and reasonable? At this point, many foreigners hire a lawyer to ensure that due diligence is thoroughly carried out, both prior to and during the purchase.
Okay, let’s do this
After a final inspection of the unit has been performed, the funds must be transferred into Thailand in a foreign currency. Once the funds are accepted, the beneficiary Thai bank will issue a foreign exchange transaction certificate that needs to be registered with the Land Titles Office. Real Estate agents and bank officials on both sides can help to ensure this process goes smoothly.
Next, a sales agreement needs to be signed off by both the buyer and seller. If you’re going the off-plan route, this will have been done long before the final inspection. Throughout the process, it’s very important to keep all receipts and copies of agreements safe. When funds have been successfully transferred into Thailand and all terms agreed upon by both parties, the actual purchase process can be completed in as little as a few hours.
Finalize your condo sale
To complete the purchase, the buyer, seller and legal representatives for both parties must go in person to the local Land Titles Office and submit the signed purchase agreement. You will also need a valid passport and Thai visa, and the foreign exchange transaction certificate provided by the Thai bank. If all goes well, you can obtain the title to your new condo and start shopping for furniture on the same day.
What are your experiences of buying a condo in Bangkok or elsewhere in Thailand? Share your stories in the comments section below:
