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