Process of buying real estate in Thailand
If you are a foreigner wanting to buy property in Thailand, whether a villa or condo but not certain as to how this is done. Here, you will find the basic breakdown of what needs to be done and how to buy property or any real estate in Thailand.
Select a Property Agent in Thailand
Since you will be looking for property in a foreign country you need expert local assistance. The real estate agent knows how to communicate in Thai and they’re familiar with the geographical area. The agent will save you valuable time in selecting and showing you the property in your price range that meets your needs.
Purchasing directly from the developer isn’t going to save you money as compared to buying property in Thailand from a property agent. A quality property for sale in Thailand is generally offered at a fixed price by the Seller. The best benefit of using a property agent is that they will act as a liaison between you and the Seller. They will obtain a fair price for you and act on your behalf to represent your best interests throughout the entire process.
Legal Planning with your Property Lawyer in Thailand
Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. You are buying property in Thailand as a foreigner and you need to know the correct legal process for you to acquire the property. Before you sign any deposit agreement or contract, you should sit down with a Thai property lawyer to discuss the legal process. We can guide you through the legal process.
Do a Title Search
A comprehensive examination of a title deed recorded at the Land Office should be done. You need to verify that the Seller has a clear and legal title deed of the land before you enter into a contractual agreement.
The title search will trace the land to its first possession. It will reveal any registered interests on the land such as mortgage or liens. This title search will also verify the rights reserved to access to your property; 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.
Make a Deposit
When you feel satisfied with the property, you will be asked to make a deposit to show your good faith to continue the process. In return, the Seller will reserve the property for you and start the process by drafting the contracts for purchase. Unless you specifically write a “get-out” clause in the deposit agreement, for example “subject to clear title” or “subject to agreement on the contract terms,” the money deposited is non-refundable.
Review of the Thai Property Contract
The Seller will have the property contract prepared for you. Since the Seller will write the contract, it is highly recommended that you have a property lawyer to do a property contract review and the terms and conditions. You will want protection for your interests should there be a delay in the property being built. A proper remedy should be stated in the contract.
The Purchase and Sales Agreement (PSA) will contain a clause for penalty if you are late with your payment. This should be fair and reasonable to both parties should the Seller default.
Your payment schedule and its ration should be reasonable and practical. Normally, a first payment is 25 percent. Thereafter payments are made on a progressive basis: 25 percent when the roof is on, 25 percent when the door and windows are secure; and 25 percent when the fixtures and fittings are completed for instance.