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Foreigners buying Property in Thailand

Jul 12

Foreigners buying Property in Thailand can enjoy many benefits, but they must keep some things in mind before purchasing a property. A deposit is often required, and it can range from 20 to 25 percent of the purchase price. These deposits, however, are non-refundable, and it is imperative to understand this before making an offer. Property contracts for newly developed property in Thailand will be similar to contracts in western countries, which require deposits at various points of construction and completion.


Importance of Property Due Diligence in Thailand

If you are a foreigner looking to invest in property in Thailand, you must know the importance of property due diligence. This is essential for both buying and selling property. The process of acquiring property includes many legal concerns, such as building permits, mortgages, and litigation cases against the owner. The following are some of the important reasons why it is important to do due diligence before purchasing property in Thailand.


Check the property registration

You should demand to see the property's registration documents and get a proper sale-purchase contract drawn up by a reputable legal office and signed by two witnesses. If possible, use traceable methods of payment to secure the property. Lastly, remember that real estate agents cannot be held liable for any scams and should not be involved in this process. Property due diligence is the buyer's responsibility.


Property Contracts in Thailand

Buying property in Thailand is a common practice for many foreigners, but buyers should do their homework and ensure that they're making the best decision for their financial situation by checking the property contracts of the seller or developer. Firstly, make sure to speak with a real estate lawyer in Bangkok before making any decision. If you're buying property along the coast, you should look into the height restrictions (there was a case in Pattaya where a tall building was built between the beach and residents' view). Next, check whether the property is zoned residentially or is industrial. Finally, check that the developer is credible, especially if it's a new development off-plan.

If you're thinking about purchasing property in Thailand, it's important to remember that it's illegal for foreigners to own more than 40% of the units in a condominium or apartment block. The only exception is if you're a company and have the business to carry on operations. In condominium buildings, however, foreigners are allowed to purchase 50% of the units, but can own up to 40% in their own name. If you're looking to buy a condominium, the minimum amount of deposit required is typically 20% to 30%. If you're looking to buy a house, you'll be advised to visit properties and see how they look before committing to an offer.


Best Time to Buy a Condo in Thailand

While the country is a desirable place to live and invest in real estate, there are a few things to consider when it comes to buying a condominium. Whether you are looking for a rental property, an investment property, or a vacation home, there are a variety of factors to consider. While buying land is restricted to Thai nationals, buying a condo is open to foreigners. As the country continues to expand and develop, the construction boom will continue to increase property values.

First, remember that not all Thai real estate agents are equal. The same is true for condos in other countries. Many of them might offer lower prices for the same property in Thailand than they would in the US. If you're in the market for a condominium in Thailand, it's a good idea to speak with a local attorney before you sign any documents. A lawyer can clarify legal aspects and review the sale and purchase agreement.