Purchasing Condominium - What You Still Need to Know

There are many things that you should know when purchasing a condo in Thailand. The first is the type of financing that is available to you. The majority of buyers purchase their condos with cash, and this is because of regulations, such as the requirement that 80% of the units be owner-occupied.

Condominium Law in Thailand

The Condominium Law in Thailand is the legal framework for the purchase of condominiums. The Act defines a condominium as "a building or complex in which owners can own individual units." While apartment buildings without a condominium license are not considered condominiums, a condominium must comply with the Act in order to offer individual apartment ownership rights. In addition, a condominium must also establish joint ownership of the common areas and building management.

Common property is land provided for the benefit of the whole development. It also includes building parts, such as hallways, elevators, and stairwells. Other common property includes landscaping, swimming pools, gyms, and private playgrounds. Common property is managed by a committee of owners elected annually.

 

Property Contracts in Thailand

Buying a condominium in Thailand requires understanding and signing of several different Property Contracts, which are important legal documents. These documents set out the buyer and seller's responsibilities, and specify the details of the unit. They also set out the terms and conditions governing the transfer of the property. The process of signing the contract should be performed in accordance with the Condominium Act.

The first thing to do when purchasing a condominium in Thailand is to determine if the price is reasonable. It is necessary to compare the price per square meter with the cost of comparable projects in the same area. Payments for existing condominiums are usually made by cashier's check at the land office in Thailand. These are issued and guaranteed by a Thai bank. For off-the-plan condominiums, payments are made in installments to the developer's bank. The final payment is usually made at the time of transfer, but this is negotiable.

In addition to these fees, the contract also includes various other stipulations, such as withholding tax, stamp duty, and a specific business tax. Before signing a contract, you should ensure that the price of the property is reasonable and agreeable to both parties. In addition, a lawyer can help you to avoid legal pitfalls, and help you understand the property contract in Thailand.

 

Deposits in Thailand for Purchasing Property

In Thailand, it is important to be cautious about using deposits for purchasing a property. In most cases, deposits are non-refundable. However, it is possible to have your deposit held for pre-launch sales. In this case, your deposit will be refunded once the price of the property is released.

The amount of deposits varies greatly by region and seller, so it is best to consult a legal professional before making any payments. A 10 to 15 percent deposit is common. In order to mitigate financial risk, buyers should include clauses to protect themselves from fraud or misunderstanding. In addition, it is important to contact a legal professional before signing any documents.

Foreign buyers who wish to purchase a condominium or other property must present a source of funds declaration when they register ownership. This declaration must show that the funds were transferred from abroad. Generally, foreign buyers must remit the funds in foreign currency and have the receiving bank exchange them into Thai Baht. The receiving bank will issue a Foreign Exchange Transaction Form (FETF), or a Credit Note for smaller amounts. Alternatively, buyers may transfer their funds directly to the seller's account. However, it is essential to request a Foreign Exchange Translation (FET) form from their bank in order to use it as evidence for registration at the Land Department.