Purchasing real estate on the secondary market
Acquiring property in Thailand's secondary real estate market encompasses several steps and factors to remember. Below, you'll find a breakdown of the precise steps involved in the process:
Start by conducting research on the real estate market in your preferred area of interest within Thailand.
1. Property Search:
Initiate your property search by investigating the real estate market in your chosen location within Thailand. Utilize online property listing websites, engage local real estate agents, and explore classified ads to find available properties.
2. Property Viewing:
Arrange appointments for property viewings to examine the units or houses that pique your interest. Dedicate ample time to evaluate the property's condition and confirm that it aligns with your criteria.
3. Price Negotiation:
Upon finding a property of interest, engage in price negotiations with the seller. Be ready for negotiation, as it's a customary practice in Thailand.
4. Offer to Purchase:
Once you have come to an agreement on the price, both you and the seller will proceed to sign an "Offer to Purchase" agreement. This document outlines the terms and conditions of the transaction, including specifics such as the purchase price, payment schedule, and any special provisions.
5. Due Diligence:
Conduct thorough due diligence to verify the property's legal status, ownership history, and the existence of any outstanding debts or encumbrances. This may involve land title checks, a property survey, and environmental assessments.
6. Deposit Payment:
Provide a deposit to secure the reservation of the property. The deposit, which usually equals 10% of the total purchase price, will be securely held in escrow until the completion of the entire transaction.
7. Sales and Purchase Agreement (SPA):
Prepare a Sales and Purchase Agreement (SPA) that clearly outlines the terms and conditions of the sale. Seek the counsel of a skilled attorney to review this contract, ensuring its compliance with Thai real estate laws and the protection of your interests.
8. Transfer of Ownership:
Finalize the transfer of ownership at the local Land Office, where both the buyer and seller or their designated representatives must be present to sign the required documents.
9. Payment of Fees and Taxes:
Settle the necessary fees and taxes linked to the property's change of ownership. The costs associated with the property transfer may encompass transfer fees, stamp duty, specific business tax, and withholding tax, which can vary based on the property's type and appraised value.
10. Title Deed Transfer:
The Land Office will commence the procedure of revising the property's title deed to include the name of the new owner. Subsequently, you will receive a copy of the updated title deed confirming your ownership.
11. Possession and Property Management:
After the title deed transfer, you will gain ownership of the property and can proceed to utilize it or rent it out according to your preferences.
12. Utility Connection:
Make arrangements to establish utility connections, including water, electricity, and internet services, under your name if they have not been set up already.
13. Community Fees and Management:
If the property is part of a condominium or housing development, you may need to pay monthly or annual maintenance fees to the condominium juristic person (CJP) or homeowners' association.
14. Legal Assistance:
Engage the services of a seasoned lawyer with expertise in Thai real estate law to guide you throughout the process, review contracts, and ensure strict adherence to all legal requirements.
15. Finalize Details:
Following the purchase, ensure you attend to important details such as updating your address, transferring property-related bills into your name, and acquainting yourself with local regulations.
Bear in mind that when purchasing real estate on the secondary market in Thailand, it is essential to exercise prudence, carry out comprehensive due diligence, and obtain legal guidance to ensure a smooth and legally sound transaction. It's important to note that the procedures can vary depending on the type and location of the property, highlighting the significance of seeking advice from knowledgeable professionals.