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Sell and Purchase a Property
Can a Woman married to a Foreigner buy House/Land?
Before 1998, a Thai woman will lose rights to land purchases in Thailand if she marries a foreigner. Land in her name before the solemnization of marriage will remain so. But after 1999, the new ministerial rule now allows a Thai woman with foreign husband to buy Land in Thailand. However an undertaking stating finance used to buy the freehold land is legally that of the lady. A declaration should also be signed by the husband who is a foreigner ,stating that the money used for property was his wife's and that he has no claim on it whatsoever.
Is it possible for foreigners to own a Land and house in Thailand?
Generally every house comes along with title deed or chanode. It includes right to the land on which the house is built and is registered to the owner. But in case of foreign nationals, neither can they own a house nor the land on which it is built. There are certain exceptions depending on terms like age, region, finance, or having a spouse from Thailand. In order to own a land in Thailand, foreigners need to open a company that has more shareholders from Thai National. When Thai shareholders agree to sign on share release forms, a managing director appointed will sign for the documents related to property purchase. Foreigners can have judicial and economic rights, provided shares owned by Thai Nationals amount to 51 percent. One can also apply for residence permit or even buy a car using this method. By paying 30 percent as deposit amount, one can get the original owner of a house to commit to a foreigner. Managing director can sell the company any time in future. Ownership of the land is governed by Land Code BE 2497 (1954), the Civil and Commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the guidelines or rules set forth by the Ministry of the Interior. Exceptions for owning Land in Thailand are as under: • Foreigner married to Thai national must buy the property in the name of spouse only. • Foreigner investing more than 40 million baht for a Thai Company will be able to buy a house with a maximum area of 400 square wah. 1 square wah = 4 square meters. • Foreigner investing unlimited amount to get hold of 49 to 51 percent of shares from a Thai company, will be able to purchase land as well as a house in the name of the company.
Is it possible for a foreigner to gain complete ownership of condominiums at Thailand?
A title deed(chanode) for Condominium will not have a land associated with a condominium . It will be registered to Thai Government under the ownership of Juristic Persons Group. Foreigners will not be given complete ownership of condominium units and they cannot be allotted more than 49 percent of total units available. However, entire rights or ownership can be acquired if the foreigner forms a Thai company. In other words, only 49 percent of units will vest with foreigners and the remaining 51 percent will be held by Thai. Another option for investment by foreigners is leasing condominiums. A leasehold agreement for any duration is 30 years or 60 years or even 90 years. It can be bought from the owner which will give right to sell it or will it to heirs. It's important to consult a lawyer and get the agreements done right. This kind of purchase is within the jurisdiction of CONDOMINIUM ACT No. 3 B.E. 2542(1999).
How is ownership of property affected with Lease Hold or Free Hold property?
Leasehold term means, the owner is letting the property to be leased by lessee(buyer) for a certain period of time, generally 30 years. After this duration lease contract expires and ownership vests with the lessor(owner). So, to gain ownership of this property for more duration, both the parties must register a renewed contract at Land Department, by paying government fee and stamp duty. However, there might be reluctance from the lessor's side to lease further, as this decision is at his discretion. Laws guarding the agreement may also change owing to the lengthened duration involved. Hence it's a possibility that the investment done on a leased property will be lost. Properties with Crown Property Bureau are Leasehold type always. On the other hand, Freehold property type of contracts will give freehold foreigners complete ownership rights and also rights to lease or sell freehold condominiums or even develop it taking care to abide by regulations of Thai law.
Apartments or condominiums will come fully furnished if you wish so. All depends on your stay duration in Thailand. If it is not permanent stay, then there is no need to bring your furniture here. It might be very heavy for tropics. There are fully furnished houses for rent as well as sale in Thailand. If you want to buy furniture from Thailand, we can suggest places to get quality furniture for your residence
In what range will water and electricity bill be levied on average sized house or Condo?
On an average electricity bill will be in the range of 1200-2000 Baht/month. Air conditioner when used, may rise this cost to around 4000 baht/month. Water bill for an average condo or a house will be around 300 to 500 baht/month. Sometimes apartments use a fixed water rate. You can get these details of fixed rates from us.
What is the process to get work permit for Thailand?
You must posses Non-Immigrant visa in order to apply for a work permit. Process involved: We provide assistance to individuals who satisfy criteria for applying to get work permit. This process involves submitting documents as listed below: • Confirmation and identification of Non-Immigrant visa possessed by you. • Preparing application for your work permit. • Preparing letter regarding Employment details. • Assemble necessary documents for proof. • Filing petition through a lawyer. We have licensed lawyers to do that. Matters that need to be attended to: • Your presence in Thailand is very necessary when application is filed and when picked up. • Work permit acquired will expire along with visa entry permit used for picking it up. For example with a 90 day visa permit when you apply for work permit, it will be valid for 10 weeks only. So, many people first apply for extension of entry permit using existing work permit and then apply for work permit to obtain extension to match entry permit date. • A foreigner is issued work permit when sponsoring company has a minimum of four Thai employees and capital of two million baht for each permit requested. • Job description is a very crucial point that decides whether application will be rejected or approved. Skills possessed by a foreigner must exceed that of a Thai person and only in such cases they are allowed work permit. Licensed Thai Lawyers with us will give you right job description that will be approved quickly. • Any change in address of company or your location must be informed by way of new application. If you have resigned or have been terminated from work it is your job to submit the work permit to Labor Department within ten days. Your company is not liable to submit your work permit. • When you have applied for a work permit take care that your visa does not expire during the processing. For example for a company with 2 million baht capital duration of processing in Phuket is about 2 months. • To abide by tax rules of the Thailand government, a work permit holder must get a salary of at least 50,000 baht and will need to pay tax that's minimum for this amount. • As mentioned earlier, work permit is linked to duration of visa. Whenever extension of stay has expired, it is necessary that you renew work permit. When you have multiple entry visa that has not expired, then you need to go out of border and return. If you had to go out of Thailand to apply for new visa, then consulate or the Embassy must be provided with copies of work permit and also fresh recommendation letter from company you work for along with registration documents of company and tax reports. All this process must be completed before expiry of work permit. • Make sure that visa renewal is done at least three days before its expiry so that delays in renewal of work permit can be avoided.
Which Visa can I use to reside in Thailand?
For either a visitor or resident to Thailand, there are four kinds of Visas. Transit Visa: This is issued for people who have no visa. Duration is 14 days only. It may need you to have a flight ticket, but nevertheless this visa is approved without any questions. Some countries are provided with 3 month stamp on entry without a visa. These countries do the same to Thai nationals visiting their place. Tourist Visa: This Visa is issued by embassy of Thailand abroad and will be valid for 60 or 90 days. One can get more than one visa and use them eventually. A quasi resident visitor will be living on this visa for many years and may even go shopping in between to other places like Singapore regularly. This approach has no dangers as long as the person using this visa is solvent and does not do any local business. Non Immigrant Visa: This is also issued by embassy of Thailand, its validity period is 90 days. This may be renewed at Thailand when expired under certain conditions like: • You must be employed at Thailand with work permit for the same. • You have a family based in Thailand. • You have retired with enough finances to support yourself. Ownership of a property does in no way affect your renewal of this Visa. To obtain this visa and renew it every time, you must have to fill long forms and submit necessary documents. One should get a Re-entry if they are leaving Thailand and do not want your visa duration to be wasted. Resident Visa: This is very difficult to obtain as it is rarely given. Cases where in a person knows to read and write Thai along with being strong financially and with good references from influential persons may get this visa. It is a very selective process.
Is it necessary that I renovate my property before selling?
Renovations are sure shot way to get higher prices for a house. But an owner must have control of capital invested on renovation works. It is not recommended to construct anything new or re-tile your house. Small time repairs, painting, etc may suffice. If you are renovating your house to suit to current times it is better. Too modern or too old fashioned house may not give you required value for the property. It is better to make a list of renovation works to keep tabs on money spent.
Do I have to do prepare my property before selling?
Preparation of property will involve little repair works, painting works and other work that will have a positive impact in appearance of property. Also it is time you set your asking price taking care not to incur loses as well as scare buyers away. It is a little difficult to set a correct price. It is better to consult an agent in this regard.
What utilities bill will I be exempted from for a Condominium?
For a owner of condominium, water utility bill is the only bill that is not levied. This is because the owner of the condominium must make his or her own arrangements to pump water to tank provided on roof tops of the building. Piping from this tank to necessary points must be taken up yourself. You will have to bear electricity expenses incurred for pumping of water. This may turn out costlier than owning a private house. For a normal house water supply price is around 16 to 25 baht per cu.m. Other utilities like electricity connection, telephone connection will be levied either by government or by service providers.
Getting mortgage loans being a foreigner is not possible unless and until they arrange for a Thai person to sign as guarantor. One must also check for other conditions applied to this kind of purchase. It's important to make sure that the chosen Thai partner has surplus demonstrated income. This income can be either in Thailand or overseas. Money used for purchase purposes must be obtained from foreign banks in other currency. Buyer buying this property must give the purpose of transferring money as to buy units of condominium in Thailand. Bank will issue form TT3 or Thor Tor 3 called Authority to buy, to a relevant land department in Thailand.
Annual interest rates are in the range of 6 to 7 percent. The duration give to repay the loan amount when the borrower is a foreigner will be a maximum of 7 years. It is better to check current rates at http://www.hsbc.co.th/th/personal/interest_rate/default.htm before applying for the loan
What is the purchasing procedure for any property in Thailand?
Deposit details: Initial deposit of 10 percent of the total amount agreed must be given to the owner in order to secure the said property with an agreement of purchase. Remaining amount of price agreed must be paid within 30-60 days from date of transfer of ownership. You may have to pay expenses incurred for the transaction in favor of Land Department as stated in clause 9. Longer durations of balance payments can be agreed upon by depositing higher amounts. Deposits are non refundable except when the vendor is penalized so. Contract of Purchase: Both parties must have an agreement consisting of duration for completing remaining purchase transactions and hence transferring of ownership. If the buyer fails to submit remaining purchase balance, then deposit amount may be forfeited. If it is the other way round and seller is at fault, then he or she may have to refund the amount. Documents Needed for Purchase of Condominium: These documents are needed while depositing the initial amount and also while signing the agreement form. • Buyer must submit passport copy that is certified. For Thai citizens ID card is sufficient. • Seller must submit passport copy that is certified (or ID for Thai citizen) along with title deed copy. Both the parties must have identical copies of signed agreement. When transfer of ownership is being done, documents that need to be submitted by a foreign buyer are as under: • Thor Tor 3 or TT3 to relevant Land Department office in Thailand under the clause 6. • Passport copy that is certified. • Marriage certificate copy if it is applicable. • Consent letter from Husband or Wife if applicable. This must be done in cases where either of them is unable to come for ownership transfer transaction.
For any property how many appraisal prices and values will be present?
For a property there will be three different appraised values. One will be government value calculated by government every 5 years, company’s value and the last is market value for that property. Government appraisal value was last updated in 2009
What kind of taxes, fees and costs must be taken into account when purchasing a property?
Taxes that need to be taken into consideration when buying a property are listed as under: a. Fee for Ownership transfer: This fee must be paid to office of the Land Department. It is generally about 2 percent of the selling price or value appraised by government. b. Fee for Duty stamps: This is also paid in favor of Land Department at the rate of 0.5 percent of selling price or the value appraised by the government, depending on whichever amounts more. There are other conditions that apply for stamp duty fee. • Seller must have owned this property for a minimum of 5 years • Seller should have used this property as primary residence for a minimum of one year before selling it. • Seller must have received this property through inheritance. c. Specific Business Tax: This tax is levied on all sale transactions by a company and also to private sales that happen within five years of duration after purchase and also when a seller did not use this property for primary residence. It amounts to 3.3 percent of total selling price or price appraised by Government depending on whichever amounts to be more. d. Withholding Income Tax: It is different for private sales and sales through company. • Private sales income tax will be calculated using a very difficult formula which has parameters like duration of ownership, value of property and income tax rate applicable. Corporate income tax will attract about one percent of total selling price or government's appraised value depending on whichever amounts more.
Can a Woman married to a Foreigner buy House/Land?
Before 1998, a Thai woman will lose rights to land purchases in Thailand if she marries a foreigner. Land in her name before the solemnization of marriage will remain so. But after 1999, the new ministerial rule now allows a Thai woman with foreign husband to buy Land in Thailand. However an undertaking stating finance used to buy the freehold land is legally that of the lady. A declaration should also be signed by the husband who is a foreigner ,stating that the money used for property was his wife's and that he has no claim on it whatsoever.
Is it possible for foreigners to own a Land and house in Thailand?
Generally every house comes along with title deed or chanode. It includes right to the land on which the house is built and is registered to the owner. But in case of foreign nationals, neither can they own a house nor the land on which it is built. There are certain exceptions depending on terms like age, region, finance, or having a spouse from Thailand. In order to own a land in Thailand, foreigners need to open a company that has more shareholders from Thai National. When Thai shareholders agree to sign on share release forms, a managing director appointed will sign for the documents related to property purchase. Foreigners can have judicial and economic rights, provided shares owned by Thai Nationals amount to 51 percent. One can also apply for residence permit or even buy a car using this method. By paying 30 percent as deposit amount, one can get the original owner of a house to commit to a foreigner. Managing director can sell the company any time in future. Ownership of the land is governed by Land Code BE 2497 (1954), the Civil and Commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the guidelines or rules set forth by the Ministry of the Interior.
Exceptions for owning Land in Thailand are as under:
• Foreigner married to Thai national must buy the property in the name of spouse only.
• Foreigner investing more than 40 million baht for a Thai Company will be able to buy a house with a maximum area of 400 square wah. 1 square wah = 4 square meters.
• Foreigner investing unlimited amount to get hold of 49 to 51 percent of shares from a Thai company, will be able to purchase land as well as a house in the name of the company.
Is it possible for a foreigner to gain complete ownership of condominiums at Thailand?
A title deed(chanode) for Condominium will not have a land associated with a condominium . It will be registered to Thai Government under the ownership of Juristic Persons Group. Foreigners will not be given complete ownership of condominium units and they cannot be allotted more than 49 percent of total units available. However, entire rights or ownership can be acquired if the foreigner forms a Thai company. In other words, only 49 percent of units will vest with foreigners and the remaining 51 percent will be held by Thai. Another option for investment by foreigners is leasing condominiums. A leasehold agreement for any duration is 30 years or 60 years or even 90 years. It can be bought from the owner which will give right to sell it or will it to heirs. It's important to consult a lawyer and get the agreements done right. This kind of purchase is within the jurisdiction of CONDOMINIUM ACT No. 3 B.E. 2542(1999).
How is ownership of property affected with Lease Hold or Free Hold property?
Leasehold term means, the owner is letting the property to be leased by lessee(buyer) for a certain period of time, generally 30 years. After this duration lease contract expires and ownership vests with the lessor(owner). So, to gain ownership of this property for more duration, both the parties must register a renewed contract at Land Department, by paying government fee and stamp duty. However, there might be reluctance from the lessor's side to lease further, as this decision is at his discretion. Laws guarding the agreement may also change owing to the lengthened duration involved. Hence it's a possibility that the investment done on a leased property will be lost. Properties with Crown Property Bureau are Leasehold type always. On the other hand, Freehold property type of contracts will give freehold foreigners complete ownership rights and also rights to lease or sell freehold condominiums or even develop it taking care to abide by regulations of Thai law.
Rent a Property
Thailand is reputed for its peaceful climate and friendly people. It is considered to be a very safe place. But every place will have its share of concerns in safety. When a place is a little unsafe for you, we will suggest another place. At the end of the day, it is a matter of your comfort. Some news in southernmost provinces about Muslim unrest may have bothered you. Government is doing its best to resolve this issue. Generally Thai people have gelled well with all foreigners. We have certain acquaintances in security of Kingdom, and we assure you that Thailand will remain a safe place to reside for one and all.
For a rented property, who pays maintenance fee?
For a rented property, it is the responsibility of the owner to pay for repair work or electricity maintenance or water tax or even structural repair. However, structural repair or other damages should not be the result of damage caused by the tenant. Minor repairs like broken windows, lights, etc have to be attended by the tenant. Few houses will have either have swimming pools or gardens or both and it's maintenance cost should be borne by tenant. Only in rare cases, owner will bear them.
What are ways to pay utility bills in a rented property?
For a rented property, many buildings will pay your bills and add this amount to the rent that is being taken. These bills can be Telephone bill, electricity bill, etc. Get all information about amount of utility bill that will need to be payed before moving in to a rented property. Coming to mode of payments, we help you to choose best mode of payment. Say, you can even choose to pay from your bank account directly and get receipt at your door step. 7/11 stores also accept payments for all utility bills.
What is the deposit value for rental contracts?
When it comes to rental periods, it will be a year long. Generally, you may have to pay a deposit of two months and an advance for a month at the time of signing contract. This deposit amount as explained above will be refunded at the end of the contract period, provided there are no damages charges being deducted from you by the landlord during your stay. Longer contracts will attract deposit of three months or more
What are the documents that will be needed when I want to rent a property?
For a foreigner who is renting a property in Thailand, documents required are as follows: • Copy of Passport that is certified • Rental agreement contract must be produced. This agreement will be agreed upon by both the landlord and the tenant. (When this contract expires, landlord will have to evaluate said property again and pay back deposit amount to tenant after deducting any damage charges). • If tenant has moved to Thailand on work permit, then a copy of this document is also required.
For renting a property, How long will it take for you to find me a place to reside?
We need only hours of notice about the type of property you are looking for, to prepare a detailed list of places you will want to visit. With our established success rate we will find a good property that will satisfy you without consuming much time. We will be with you until you get a property that's suitable for your needs.
Will I get protection from Law as a Tenant?
Law cannot interfere with contract terms agreed upon by you and the landlord. Hence it is better to have solid contract before buying a property. A legal procedure in Thailand will take a long course to get you justice. We are always there for you, when it comes to negotiating with the landlord regarding resolving any dispute or issue.
When an agent finds me a property in Thailand, do I need to pay any extra fee to him?
Services offered by us are free, because landlords will pay us commission for finding them a tenant. We take up searching for new clients for landlords. The commission prices charged are standard market prices and hence we have the trust of landlords. Although we take our fee from landlords, we are also interested in your satisfaction when it comes to buying or leasing a property, because a satisfied customer is a potential client of tomorrow.
What will happen if I may have to move out of Thailand before lease expiry?
If one has to leave within the year of contract then deposit amount is forfeited. After first year, we will negotiate to make an arrangement of 60 day prior notice without having to lose your deposited amount.
When renting a property is there a minimum rental contract or terms and conditions for it?
Generally rental periods may be about one year. Some shorter duration contracts will also be available. One will have to pay deposit equaling two months rent along with another month in advance when signing contract. Deposited amount will be returned after a month of lease expiry. This duration is to make sure that all utility bills have been cleared before giving security deposit, because any owner is liable to pay for bills that are outstanding in their premises.
What are maintenance charges levied for a condominium?
Maintenance cost will vary with every condominium and basically depends on it's size. One has to pay it as advance every year. Generally tariffs may range between 25 to 50 baht per sq.m every month.
