Foreign Ownership

  (Return to Main page)

Owning a Condo in Thailand

   As long as you follow a couple of simple laws and regulations, it is relatively easy for a foreigner to own a condo.

   The total amount of foreign owners in a condominium may not exceed 49% of the total ownership.The condo management administers this law, by issuing a letter stating the acceptance of the sale to a farang (foreigner). If you buy your condo from another foreigner, then you purchase the condo already listed as part of the allowable percentage. If you purchase the condominium from a Thai national, then an inquiry to the condo management is recommended, as your title will be converted into a “Foreign Title”. The sale will not proceed if the 49% foreign ownership is exceeded.

    If you buy a condominium, you will need to show that the funds have been sent into Thailand in a foreign currency from overseas. It is important to remember that your bank remit the money as foreign funds, and let the banks in Thailand convert the funds into Thai Baht. Do not allow your bank to convert your money into Thai Baht and then transfer the funds. This is NOT acceptable. The local receiving bank will provide the buyer with a “Foreign Exchange Transaction Form”, when requested, stating that the funds arrived in Thailand for the purpose of buying a condominium. This certificate needs to be presented at the Land Department when the transfer is made.

Settlement

            The settlement date is the day on which you finalise payment and take possession of the property.

    Your legal representative, whether it be a lawyer, the real estate company or yourself should arrange the settlement date, time and location which is agreeable to yourself and the seller within the time frame of the contract.

   You are entitled to vacant possession at the time of settlement. You are also entitled to a final inspection just prior to settlement - if the property is not as expected, you may choose to inform the vendor that you will not settle until the property is returned to the state it was in at the time the offer was made.

   On settlement day, the balance of the purchase price is paid and the title deeds (legal documents stating property ownership) are taken to the Land Department for registration of the transfer, and the keys to the property will be handed over.

   Documents required for purchasing by a Foreigner

1. Certified copy of Passport, extra certified copies for each “Power of Attorney”

2. Bank Account to be opened: Bank Book.

3. Power of Attorney to sign for Lands Department (if required)

4. Power of Attorney to withdraw funds from bank (if required)

5. Names of Parents and Birth Dates.

6. Foreign Exchange Transfer Form from bank.

7. If in joint names: Certified translated copy into Thai of Marriage Certificate (at Thai Embassy)

8. Seller to obtain notification from Condo management to state “No debts”

9. Condo management to state “Under 49%” Ruling re: Foreign Ownership.

10. Final Lands Department payments for taxes: Bring enough cash for transfer fees and taxes.

11. Power of Attorney to change utilities into new owners name.

12. Obtain last electricity bill from owner + last water bill.

 

  (Return to Main page)