Buying a Condo in Chiang Mai
Purchasing a condo unit in Chiang Mai is a smart investment if you intend to stay there for a long time. In fact, in Chiang Mai, the net returns for rental units are 5 to 9% per annum. Chiang Mai condo unit owners can even consider using Airbnb to make some extra cash. Of course, it is important to note that a condo unit owner is not allowed to engage in commercial activities.
Thailand Condominium Act
The Thailand Condominium Act was enacted to give condo unit owners the right to express their concerns during a general meeting. In addition, the law also allows joint owners to violate certain provisions. A violation of Section 36 will result in a fine of at least fifty thousand Baht. The Board Chairman is liable for a fine of at least five thousand Baht for each violation. Under certain circumstances, the condo corporation may also be fined for breaching the Act.
The Condominium Act in Thailand provides a certain level of consumer protection for condo units. Individual unit owners are not required to pay the housing or land tax, but they are allowed to manage the building themselves. There is also no housing or land tax on condo properties. The government's website has comprehensive information on these issues. If you are considering buying a condo unit, be sure to consult the Condominium Act to ensure you are buying a quality product.
Conducting a Title Search
When buying a condominium in Thailand, conducting a title search is necessary to determine who actually owns the property. Performing a title search can reveal past owners and the type of title it has. The records of past owners may go all the way back to the king when Thailand was a country. By knowing who the past owners are, you can make an informed decision about purchasing a property or continuing your search for a different property.
Before negotiating the purchase price, conduct a title search on the condo. Make sure to get a copy of your passport and the original title deed. Bring the original title deed, along with two or three copies of it. Prepare the value you will report to the government. If the value is lower than what you expect, ask for a higher price. In some cases, it is advisable to make a payment in installments, rather than in full.
Performing Due Diligence
Performing due diligence when buying a condo is crucial to avoid any unwanted surprises down the road. This is essential when investing in any property in Thailand. Performing due diligence includes investigating the legality of property, checking whether it is legally encumbered, and examining any documents attached to the property. In addition, due diligence involves checking whether the development is permitted in the area in question. The developer's reputation should also be checked through a local lawyer's office.
Whether an expat should buy a condo in Thailand is up to the buyer, but it is advisable to seek the assistance of a competent property lawyer. In Thailand, the Condominium Act stipulates that at least 50% of the property's floor area must be under Thai ownership. A good way to check this is to visit the land office in the city where the property is located to see whether it is allowed to be owned by foreigners.
Reviewing the Terms of the Purchase Agreement
When buying a condo in Chiang Mai, it is important to review the terms of the Purchase Agreement thoroughly. The contract will specify the terms and conditions of the sale and a deposit is often required. The deposit is usually 3% to 5% of the purchase price. Both the buyer and seller must sign the contract to finalize the sale. Chiang Mai Lanna House will arrange this for you.
When buying a condo in Thailand, the most important aspect of the transaction is the sale and purchase agreement. The agreement must be legally sound and protect the buyer. If you are purchasing a condo through a private resale, the contract should include the terms of a private resale under the general contract law. The two parties may agree on various conditions before they finalize the sale.
Hiring a Property Lawyer in Thailand
In order to buy a condominium in Thailand, you need to hire a good property lawyer. While some banks in Thailand will not provide loans to foreigners, they can help you get a mortgage. If you cannot find one, you may need to rent out your unit until you have saved enough money to purchase a property. In the future, banks may offer affordable foreign mortgages. Alternatively, you can buy a condo in Thailand while living abroad. In order to do this, you must hire a property lawyer in Thailand and give them the authority to purchase your condo.
A property lawyer can help you understand the Thai real estate laws and minimize your risks of purchasing a condo in Thailand. They can also help you with the due diligence process, like running a title search on the property to make sure the seller is actually the owner. They can also help you with legal fees, transfer fees, and taxes. If you hire a property lawyer in Thailand before buying a condo in Chiang Mai, you'll be protected against all of these risks.