In case of a resale condo unit/ apartment in Thailand the purchase price for the unit could be paid by cashier's check to the seller at the time of transfer of ownership of the unit at the land office. In this case the buyer of the condo must obtain a cashier's cheque and the foreign exchange documents (FET form) from his bank inside Thailand required for registration of foreign ownership under condominium laws.
Off plan or pre-construction or under construction real estate developments in Thailand are usually financed by the buyers who pay deposits and price installments during the construction directly to the developer who uses these payments to finance the housing or apartment project. In the event of default or bankruptcy of the developer the buyers could lose all monies paid unless his payments were deposited in an escrow account held by a third party
Total transfer fees and taxes involved for the buyer with the transfer of ownership of a condo in Thailand could range from a relatively small amount to a more substantial amount depending on the agreement with the seller. In a sale and purchase of a newly built apartment unit consumer protection laws specify that the developer may only ask up to half of the 2% transfer fees from the buyer, all other taxes, fees and costs involved with ownership registration on the name of the buyer must be born by the developer.
Thai land laws prohibit foreigners from owning land but the Condominium Act allows foreigners to own a condo in Thailand. Ownership of an apartment in a condominium includes co-ownership in the common areas such as the land, exterior of building, hallways and stairs, roof, swimming pools. Below some frequent asked questions relating to condominiums in Thailand and foreign ownership.
'Matrimonial law' in Thailand is primarily codified in the Civil and Commercial Code. The legal system of Family Law in Thailand is based on mainland Europe Civil Law with main influences from the French 'Code Civil'.
To qualify for foreign ownership under the Thailand Condominium Act a foreign purchaser of a condo unit is required to remit the full purchase price for the condo in foreign currency into Thailand, unless he is a resident in Thailand or eligible for foreign ownership under one of the other less common grounds of section 19 of the Condominium Act.
Thailand restricts and prohibits economical areas and business categories for foreigners primarily in the Foreign Business Act (A.D.1999). Under the Foreign Business Act (FBA) foreigners are prohibited from engaging in most business categories in Thailand, unless an alien business operation permit has been obtained from the Director-General of the Department of Commercial Registration with the approval of the Foreign Business Committee. Separate laws control foreign ownership of land as well as such activities as banking, insurance, finance and shipping.
Foreigners cannot own land in Thailand but are allowed to lease land under a land lease agreement registered with the land department and own the structure built on leased land. Obtaining the correct legal ownership of the building greatly increases the land lessee's rights and long term interest in the property. The right to own a building upon another man's land however always relates to the right to use and possess the land, i.e the term of the land lease (and optional the term of an additional right of superficies).
Foreigners cannot own land and house as under Thai land laws foreigners are prohibited from owning land in Thailand. Foreigners can however obtain outright ownership of an apartment unit in a licensed condominium building. The condominium act (section 19) governs foreign ownership.
Read more: Foreign ownership of an apartment unit in Thailand
Foreigners can own an apartment in a condominium in Thailand, but ownership of land or land and house is limited to only Thai nationals. It is under the Thailand Land Code Act not possible for foreigners to obtain outright ownership over land and house in Thailand. Foreign land ownership limitations apply but many foreign investors have been duped into believing that they can own land in their own name in Thailand.
Read more: Foreign real estate investment options in Thailand
A will is something you know you have to deal with but you don't really want to, but remember that a last will and testament insures your assets are given to those who you have entrusted your estate to upon your death. If you have not made a last will your wishes may not necessarily be carried out.
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