Buy a condominium in Thailand Step by Step (Update 2019)
The foreigner can buy a condominium in Thailand with freehold condition (no need to set up company). As per Condominium Act, 2008 of Thailand, it allows the foreigner to own condominium in freehold condition in their name. But it must be under the condition of Section 19.
“Section 19. Foreigners
Aliens (foreigners) and juristic persons regarded by law as aliens (foreign) may hold ownership of an apartment if the are the following:
- Aliens permitted to have residence in the Kingdom under the Immigration law;
- Aliens permitted to enter into the Kingdom under the investment promotion law;
- Juristic persons as provided in Section 97 and 98 of the Land Code and registered as juristic persons under Thai law;
- Juristic persons which are aliens under the Announcement of the National Executive Council No.281 dated November 24 (current section 4 Foreign Business Act), B.E. 2515 and have obtained promotion certificate under investment promotion law;
- Aliens or juristic persons regarded by law as aliens who have brought in foreign currency into the Kingdom or withdraw money from Thai baht account of the person who have residence outside the Kingdom or withdraw money from a foreign currency account.”
Most of foreigners who buy the condominium in Thailand they use the condition in (5) by showing that they transfer foreign currency to Thailand for the purpose of buying condominium. However, the amount must cover the price of such condominium that they are going to buy. (This is the easiest way to buy).
Legal Step to buy a condominium in Thailand.
1. Reservation payment
Once the Buyer already found the condominium that they like, they can pay the reservation fee to the Seller or Developer. According law in Thailand there is no specific amount that need to be paid. So, we suggest the Buyer pays it as less as they can.
After that the Seller will reserve the unit with some specific period for the Buyer and prepare Sale and Purchase Agreement for sign. (normally around 30 days).
2. Due Diligence the Condominium Unit
After pay for reservation, the Buyer should meet property lawyer who specializes in property acquisition to do the due diligence of this condominium unit.
The lawyer will check with the related government office to make sure that the condominium unit is good condition to buy. Such as Land Department, Municipality Office, Court, Consumer protection etc. And the lawyer will provide Due Diligence report to the Buyer showing the result of Due Diligence.
3. Draft or Review Sale and Purchase Agreement.
Once the due diligence proves that the condominium is in good condition to buy, the lawyer will prepare or review Sale and Purchase Agreement to secure benefit of the Buyer such as term of payment, penalty of delay, enforceable by Thai Law etc. All these things must need the experienced lawyer to work in detail.
4. Transfer registration at Land Department.
The lawyer can represent on behalf of the Buyer to go to the Land Department for the transfer registration. And we suggest you to have lawyer go there to secure your benefit. Because all paper works at Land Department are in Thai. So, you need Thai Lawyer who can speak English go there to verify correctness of document.
5. Translation Title Deed and other document to English.
All documents released by Land Department will be issued in Thai. So, you need a certified translation firm to translate it from Thai to English for your understanding and your record.
What is the document need for transfer a condominium?
In order to transfer the condominium to foreigners, here are list of document that need to present to the Land Department Officer:
- Copy of Passport of the Buyer
- Power of Attorney from the Buyer
- Bank certificate show foreign currency transfer to Thailand
- Copy of ID card and House Registration of Attorney
- Original of Title Deed
- Copy of ID Card, House Registration or Passport of the Seller
- Power of Attorney from the Seller
- Non-Debt Certificate from the JPC
- Certificate of foreigner ratio
Buying condominium in Thailand even for residential or investment under foreigner name is complicated. You should have an attorney who expertise in this area accompany you. Our firm has given service for property acquisition for many years. We are always available and willing to help you. Please contact us as +6622581763