Buying a condo is safe
Buying a condominium unit has become the simplest and easiest alternative for foreigners who want to own real estate in Thailand. The foreigner may own the condominium unit under his or her own name. Under Thai law, a foreigner is not prohibited from owning a condominium building in the country, as long as his title does not exceed forty-nine percent (49%) of the entire condominium building.
Thus, a foreigner may acquire one or more condominium units, provided that it does not exceed forty-nine percent (49%) of the total number of units in the condominium building.
The funds for the acquisition of goods must come from abroad
When purchasing the property, the foreigner is required by law to pay for the condominium unit in foreign currency with funds from abroad, and duly registered as such with a Thai bank as evidenced by a “Foreign Exchange Transaction Form” or Form TT3. Submission of a TT3 form is required at the time of registration of the transfer of ownership.
To do so, the foreigner/buyer must: 1) open a Thai bank account; 2) After opening an account, the buyer must transfer the funds in foreign currency to a Thai bank account; 3) make sure there is a written statement that the reason for the transfer is for the purpose of “purchasing a condominium; 4) request a Bank Foreign Exchange Transaction Form (Form TT3).
Procedure to buy a condominium in Thailand
Step 1 Title Search It is very essential for a foreign national who wishes to purchase a condominium unit, or for that matter, an ownership interest in a condominium building, to determine if the title to the condominium is clear. The unit, or the building, and the land on which the condominium stands must not be mortgaged. It is also very imperative that the foreigner/buyer processes with the legitimate owner of the property or the duly authorized representative.
Step 2 Sales Agreement A Sales Agreement is the contract between the seller and the foreigner/buyer in which the condominium unit being sold is transferred from the property of the seller to that of the buyer for a fixed price agreed upon by both parties after a meeting of the minds between the two parties.
Step 3 Payment The usual practice in Thailand is for the buyer to pay the price in full, in accordance with the Sales Agreement. At this point, ownership of the property will be transferred to the foreign buyer.
Stage 4 Property Registry Once the condominium unit has been paid in full, the parties will proceed to the Land Office to complete the transfer of title to the land.
Thailand condo purchases are most popular in Bangkok, Phuket, or other resort communities. Siam Legal offers a free legal guide to real estate purchases in Thailand.