| How to Successfully Acquire Property in | | | | same is true when you purchase a property |
| Thailand. | | | | from a developer. You should check with the |
| | | | previous buyers to see if they are satisfied |
| Living in Thailand is a dream for many | | | | with the quality and time frame of |
| foreigners who wish to escape the cold | | | | construction. If you don't have the time to |
| winters and the high cost of living in their | | | | spend on checking the history of the |
| home country. Thailand offers the foreigner | | | | developer, a local lawyer near the |
| many benefits including beautiful beaches, | | | | development will know or can check the |
| tasty food, friendly people, world class | | | | project, its directors and their reputation. |
| health care and inexpensive property. Many | | | | |
| foreigners come here to retire and others | | | | Deposit |
| come only part of year to enjoy what Thailand | | | | |
| has to offer. For those to desire to long | | | | When you feel satisfied with the property and |
| stay in Thailand, the ability to acquire | | | | it meets your expectations, you will be asked |
| property is an important issue. A | | | | to make a deposit to show your good faith to |
| substantial amount of their life savings is | | | | continue the process. In return, the Seller |
| used to acquire this dream property. From | | | | will reserve the property for you and start |
| the perspective of a Legal Advisor, I would | | | | the process by drafting the contracts for |
| like to share with you the process to | | | | purchase. Unless you write specifically a |
| successfully acquire property in Thailand. | | | | "get-out" clause in the deposit agreement, |
| | | | for example "subject to clear title" or |
| Select a Property Agent | | | | "subject to agreement on the contract terms," |
| | | | the money deposited is non-refundable. |
| Since you will be looking for property in a | | | | |
| foreign country you need expert local | | | | Review of Contracts |
| assistance. The agent knows how to | | | | |
| communicate in Thai and they're familiar with | | | | Now you are ready to proceed to acquire the |
| the geographical area. They can show you | | | | property upon verification of a clear title. |
| many quality properties in their inventory. | | | | The Seller will have the contracts prepared |
| Typically, a good agent will weed out the | | | | for you. Since the Seller will write the |
| poor quality units. They want satisfied | | | | contracts, it is highly recommended that you |
| clients and they will avoid problematic | | | | have a lawyer or solicitor review the terms |
| developments. The agent will save you | | | | and conditions. First, you want protection |
| valuable time in selecting and showing you | | | | for yourself should there be a delay in the |
| the property in your price range that meets | | | | property being built. A proper remedy should |
| your needs. I can honestly say that | | | | be stated in the contract. Second, the Seller |
| purchasing directly from the developer isn't | | | | will state a penalty if you are late with |
| going to save you money versus buying it from | | | | your payment. This should be fair and |
| agent. A quality property for sale in | | | | reasonable to both parties. Finally, your |
| Thailand is generally offered at a fixed | | | | payment schedule should be reasonable and |
| price by the Seller. The best benefit of | | | | practical. Normally, a first payment is 25 |
| using a property agent is that they will act | | | | percent. Thereafter payments are made on a |
| as a liaison between you and the Seller. | | | | progressive basis: 25 percent when the roof |
| They will obtain a fair price for you and act | | | | is on, 25 percent when the door and windows |
| on your behalf to represent your best | | | | are secure; and 25 percent when the fixtures |
| interests throughout the entire process. | | | | and fittings are completed. Your lawyer |
| | | | will make recommendations and these concerns |
| Legal Planning | | | | will be given to the Seller for amendment of |
| | | | the contracts before you sign. |
| Before you sign any deposit agreement or | | | | |
| contract, you should sit down with a lawyer | | | | How to Pay |
| or solicitor to discuss the legal process. | | | | |
| You need to know the correct legal process in | | | | You will transfer funds into Thailand from |
| Thailand for the foreigner to acquire | | | | overseas for the purchase. The funds |
| property. Remember that you are spending | | | | transferred will be in foreign currency and |
| part of your life savings to acquire this | | | | converted by the Thai Bank to Thai Baht. A |
| property and you must carefully plan your | | | | British couple for example will transfer |
| steps in the process. Siam Legal offers free | | | | Sterling from their London bank and wire to |
| legal consultation to potential property | | | | the bank in Thailand. The Thai bank will |
| buyers. You should get the legal facts of | | | | convert the funds into Thai baht and deposit |
| the property and contract laws in Thailand | | | | it into local bank account. The Thai bank |
| before you deposit any money. | | | | will issue a Foreign Exchange Form to confirm |
| | | | the transaction. The bank will only issue |
| Legal Structure | | | | this form if the transaction is over $20,000 |
| | | | USD. When you wish to repatriate the funds |
| In Thailand, a foreigner may only own a | | | | back to your home country, you will need to |
| condominium in his/her own name. If the | | | | show the Foreign Exchange Form and supporting |
| foreigner wishes to acquire land and build a | | | | documents. Your lawyer or solicitor in |
| house, he/she should obtain a long term lease | | | | Thailand can act as an escrow agent and |
| on the land, typically 90 years (registered | | | | disperse the payments to the Seller per your |
| 30 years initially and two renewals of 30 | | | | instructions. |
| years each). The foreigner should apply for | | | | |
| the construction permit to build the house in | | | | Construction Phase |
| their own name. This way the foreigner owns | | | | |
| the house and has a secured long term lease | | | | The building of your dream house will take |
| on the land. The lease is written with the | | | | time for the construction. The rainy season |
| option to reassign to another person (if you | | | | in Thailand sometimes runs longer than normal |
| sell), ability to sublease and with a | | | | which can delay the process. A good |
| purchase option (should the law change in the | | | | developer will keep you posted on the |
| future to allow freehold ownership by the | | | | progress of your house construction. Photos |
| foreigner). Therefore, a lease is the most | | | | should be provided by the Seller to you at |
| common legal method for the foreigner to | | | | each stage if you are not in the country. |
| acquire property in Thailand. | | | | Your property agent should work for you in |
| | | | this time period to answer any questions you |
| Title Investigation | | | | may have about the process or timeline for |
| | | | the completion of the construction. |
| A comprehensive examination of title deed | | | | |
| recorded at the Land Department should be | | | | Handover of Property |
| done. You need to verify that the Seller has | | | | |
| clear and legal title of the land before you | | | | At the conclusion of the construction period, |
| enter into a contractual agreement. The | | | | you will receive notification from the Seller |
| title search will trace the land to its first | | | | that your property is ready for inspection. |
| possession. This investigation will also | | | | You or your representative will go to the |
| verify the right to vehicle & utility access | | | | property site and conduct a thorough |
| to your property; provide the residential | | | | inspection for any defect in construction or |
| zoning, environmental and planning codes in | | | | materials. Once you have accepted the |
| the area and show any registered mortgage or | | | | condition of the property, you will go to the |
| liens on the land. It is a good idea to make | | | | Land Department for the transfer or |
| sure that you can build a structure on the | | | | registration process. If you lease the land, |
| land. Also you need to find out if you have | | | | the registration of the lease will take |
| legal access to drive your car to it. Don't | | | | place. If you are not able to appear in |
| take the word of anyone who tells you it has | | | | person, a lawyer or third party can represent |
| been checked before. The lawyer conducting | | | | you by means of a Power of Attorney. |
| the title investigation will provide you a | | | | |
| full report and a copy of the title deed in | | | | Warranty |
| English language. | | | | |
| | | | Thai Government regulations provide for 5 |
| Due Diligence | | | | year warranty on main structural parts. A |
| | | | one year warranty is generally offered in |
| Every financial transaction requires some | | | | most contracts on component parts or |
| sort of due diligence on behalf of the | | | | accessories which are major parts of the |
| purchaser to verify that it is a sound | | | | building. A good developer will be quick to |
| investment. When you purchase shares of a | | | | respond to requests for repair of any |
| company listed in stock market or a mutual | | | | defects. Keep this in mind when you are |
| fund you will generally research the profile | | | | asking your questions during the due |
| and performance of the company or fund. The | | | | diligence process. |