Condominium is one of the rare characteristics that foreigners can own freehold in Thailand. However, there are restrictions based on the recently revised Thai apartment law to purchase condominiums. The main provisions of this law relate to the number of condom units freely owned by foreigners in a particular condo development. This law limits foreign ownership to 49% of total ownership in development, leaving 51% of it to local ownership. This is a problem for real estate developers because domestic demand for condominiums is not as high as foreign demand. Ultimately, real estate developers can lease units only to foreigners who are interested, in order to maximize profit while maintaining condor law.
The Thai real estate business is not regulated, but the Thai government amends the old real estate law and introduces a new law to protect the rights of real estate investors. The real estate market in Thailand prospers and the contribution to the national economy is becoming increasingly important. At the same time, foreign investors are demanding protection of real estate investment in Thailand. The Thai government seems to acknowledge this challenge, as apparent from the response to improve the implementation criteria of real estate transactions in the realm. The use of standardized real estate contracts and cracking of tremendous developers is just one of the initiatives currently in place. Sometimes, before the benefits of these standardization initiatives are fully realized, during that time real estate investors are encouraged to attend attention or follow certain procedures in purchasing condom or real estate in Thailand.
Purchasing process
Whether newly developed, it is prudent to follow the following condo purchase procedure in Thailand.
1. The need for a reputable real estate agency - It is difficult to find real estate and recruit reputable agencies and ignore the benefits of price negotiations with the seller. It saves you much trouble. There are many agencies in Thailand, and I speak both Thai and English. You can also contact the purchased real estate for you.
2. Title search - This is necessary to ensure that condom is released from all forms of mortgages and other issues that may subsequently pose problems.
3. Review of Contract - A standard contract that is not comprehensive enough to accommodate all the provisions necessary for purchase contracts that may have land offices but do not want to go home. In this respect, it is prudent to consult with a lawyer and make necessary contract reviews.
4. Transfer of property - This will be done in the land. If you are hiring a law office to help you purchase, your agent can do so by your proxy by proxy letter so you do not need to move to a land office.
Finance
The Condominium Act requires that funds used to purchase Thai condos or real estate are offshore funds. It is necessary to present a form of foreign exchange transaction before the land agency during the transfer of the certificate. You can open up a savings account in Thai bank account and send necessary funds or you can use escrow agent as an alternative.
Regarding mortgage providers, there are no banks currently offering mortgage for apartment purchase in Thailand.
Condominium is one of the most demanding forms of real estate investment in Thailand. In order to realize the benefits of this investment, it is prudent to confirm the legality associated with ownership in advance to avoid conflicts with the law concerning condom ownership later.
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