The law of the country where you want to purchase a property may have significant features. If you want the transaction to be transparent and safe, you need to pay attention to the documentary part of the issue. Thailand-Real.Estate can tell you more about everything that is important to remember for buyers of real estate in Thailand.
Since the beginning of the pandemic, remote transactions have become in great demand in Thailand. High-quality legal support can make the real estate registration process more comfortable for both the seller and the buyer. At the same time, neither party may be in Thailand.
So, what actions do the buyer need to take to:
• purchase a property in Thailand,
• not to lose money during the transaction,
• protect yourself as much as possible from the unscrupulous actions of the developer (seller)?
What real estate type would you like to buy in Thailand?
First of all, it is important for you to decide what exactly you want to buy: an apartment, a house or a villa. And what goals do you pursue: permanent residence or rent to generate income? It will depend on which real estate type to choose: freehold or leasehold.
1. Freehold (full private ownership)
It is purchased under the sales contract. The transaction is registered with the Land Department. Upon registration, the buyer receives a chanot (a title deed in Thailand). Having become a homeowner in Thailand, you have the right to sell this property, donate, lease, mortgage, or inherit it (without any restrictions).
2. Leasehold (long-term lease right)
It is purchased under a lease agreement. According to Thai law, a long-term lease lasts no more than 30 years, and the buyer (tenant) gets the right to use the property for this period. The buyer does not become a homeowner, he is a tenant, and the developer (seller), respectively, is a landlord under such an agreement. It is the developer (seller, landlord) who remains the homeowner.
However, the seller is obliged to register with the Land Department the right of lease (encumbrance) for 30 years for the buyer (tenant) and enter information about him in the channel. It is extremely important for the buyer to register the lease right with the Land Department because no one can take away from him the right to rent and use this property during this period.
After the encumbrance is registered, you have the right (with the consent of the homeowner) to resell your right to lease, sublet the property, donate your right to lease, and resolve with the homeowner issues about re-registration of the lease right for your heirs. You must add these options to the lease agreement.
Moreover, you have the right to extend this lease agreement after 30 years for another 30 and 30 years, or a total of 60 years, with the consent of the landlord. There is information about the extension in the original lease agreement.
A legal expertise
Every buyer is interested in making the deal transparent and safe. Therefore, before signing any documents with the developer (seller), you have to perform the following actions.
• Check the developer company (accounting data, payment of taxes, information about the company’s directors and whether they have the right to sign contracts, a construction permit, an environmental certificate, and so on).
• Check the property. Get a copy of the chanot of the land plot valid at the time of sale. Check the rights registered on the land plot, encumbrances, arrests, mortgages, and the rights of third parties. If you want to buy real estate that has been commissioned (or a second-hand one), you need to get a copy of the chanot and perform all similar verification actions.
• Check the contract of sale or lease to meet the requirements of the Thai legislation, so that, if necessary, you can confidently defend your interests in court.
Fulfilling obligations under the contract
Each party signs the contract remotely. You do not have to be in Thailand — this is provided for by law and is valid if you have sent a contract signed remotely from your e-mail to the developer’s (seller’s) email prescribed in the contract.
By signing the document, you agree to comply with all its terms. The construction company sends you the original contract, and after signing it, you send it to the developer by email.
In addition, you also need to issue some documents to register the housing rights in the Land Department.
First of all, this is a power of attorney for a representative who will register the rights in your name and your interests. You issue a power of attorney in your home country based on the procedure established by Thai law and send the original to your proxy.
If you are purchasing a freehold property, you need to get a FET (foreign exchange transaction form) certificate, which confirms that you have purchased real estate in Thailand for investment legally.
When acquiring a leasehold property, this document is not required.
Registering real estate rights and receiving documents in the Land Department
After inspecting the property and preparing all documents, the Land Department registers freehold or leasehold rights. Representatives of the developer (seller) and buyer participate in this process.
Upon registration, you receive:
1. When registering property rights (freehold):
• the contract of sale with the new owner’s name and surname and information about the housing, signed and stamped by the employees of the Land Department;
• a certificate of ownership (original) with the new owner’s name and surname;
• the house book with the address and information about the property.
2. When registering the right of a long-term lease (leasehold):
• a lease agreement with the data of the landlord and the tenant;
• a certificate of ownership (copy) with the owner’s data, the lease term (encumbrance), and the buyer’s (tenant’s) data;
• the house book with the address and information about the housing.
After receiving all these documents, your authorized representative sends you copies by email to confirm the successful transaction.
We will help you purchase a home in Thailand
However, you can contact Thailand-Real. Estate and its licensed brokers, will do everything for you legally and transparently. You can entrust the deal remotely to the company’s experts. They will work only in your best interests and act on your behalf to make the best deal and make you the happiest homeowner in Thailand.
