Buying a Villa or a Condo in Thailand
When it comes to buying property in Thailand, it is important to know the difference between buying a villa and buying a condominium. Villas are land-based, while condominiums are not. Buying in your name is easier in condominium projects, but a lawyer or solicitor should be consulted to ensure that you follow the correct procedures.
Do a Due Diligence in Thailand
Buying property in Thailand is a huge investment and requires careful consideration. It is important to seek legal advice and do due diligence before making any final decisions. Buying property in Thailand involves many legal issues, and the transaction needs to be completed according to Thai laws. Due diligence is crucial to ensure that all parties are aware of the ownership structure and consequences of any agreements. When buying property in Thailand, foreign investors should be knowledgeable about Thai laws and hire a legal team that can guide them through the process.
When buying property in Thailand, it is important to ensure that you have a proper title deed. This will ensure that you are the owner of the immovable property. You must also ensure that the property is not under any other owner's name or is not subject to any unregistered leases, usufructs, superficies, or servitudes. In addition, it is a good idea to check the land office's records to determine if the property is subject to any restrictions.
Conduct Title Search in Thailand
One of the most important steps before purchasing a villa or condo in Thailand is to conduct a title search. This search can help you determine the legal ownership of the property and whether the seller has any rights over it. It also provides you with information on the types of documentation for the property.
The process of conducting a title search is crucial to ensure that the property you are buying is free from liens or mortgages. Moreover, it will give you information about the ratio of Thai and foreign ownership. Depending on the area where you're purchasing the property, you might even be subject to additional restrictions.
Besides checking whether the property is free from mortgages, you should also check whether the property is subject to property taxes. The Land Department issues property taxes in Thailand. If you're buying a condo in Thailand, you'll have to pay taxes for the property.
Property Contract Review in Thailand
One of the first steps of purchasing a villa or condo in Thailand is to get a Property Contract Review. This document binds both parties and finalizes the terms of the sale. Often, it is written in Thai or English and you should make sure to carefully review it before committing to the deal. If you are not fluent in Thai, you may want to consider having the document translated.
The contract should clearly state the price of the property. This price should be stated per square meter and should also include the payment terms and any other charges. Also, the contract should state the specifications of the building, including the materials and quantity used in its construction, as well as the model and floor plan.
The contract should also specify whether the land is freehold or leasehold. While you can purchase land from a Thai company, you cannot own it outright. In most cases, you will be offered a lease for the entire property, which can be extended twice. You should also make sure that the lease contains clauses that allow you to sublease or reassign it. You will also need to pay taxes equivalent to 1.5% of the land's value.