You are on page 1of 9

Mercure Capital Ltd.

51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok


Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
Some important facts about buying
real estate in Thailand
Below are some important facts for foreigners to consider before buying any real estate in Thailand.
Should you have any question or concern please send us an email at info@mercurecapital.net. We
would be happy to answer any concern you should have.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
1. Can foreigners invest in Thai
properties?
Land ownership in Thailand is governed by the Land Code Act where
foreigners cannot own land. Foreign land ownership restrictions in
Thailand refer to the land only, not the building on the land or
condominium registered under the Condominium Act. Therefore, the
land and the structure on the land could be owned independently by
separate persons, and foreigners buying a home in Thailand can do
this through a 30-year land lease agreement (renewable) with the
house owned as a separate personal property.

A foreigner may own 100% of a condominium in his/her own name


provided that 51% of the total condominium surface is owned by Thai
citizens and that 100% of the amount of the purchase price is
transferred from an oversea source.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
2. Get legal advice from a
qualified Lawyer
Before you sign any deposit agreement or contract, you should sit down
with a lawyer or solicitor to discuss the legal parameters. A
comprehensive examination of title deed recorded at the Land
Department should be done. You need to verify that the Seller has clear
and legal title of the property before you enter into a
contractual agreement.
In addition, the Seller will have the contracts prepared for you. Since
the Seller will write the contracts, it is highly recommended that you
have a lawyer or solicitor review the terms and conditions. You will
want protection for your interests should there be a delay in the
property being transferred or built. A proper remedy should be stated
in the contract.
The contract will also usually contain a clause for penalty if you are late
with your payment. This should be fair and reasonable to both parties.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
It is absolutely critical to follow the correct legal process in Thailand for
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37

a
3. Deposit when buying a property

When you feel satisfied with the property, you will be asked to
make a deposit to show your good faith to continue the
process.
In return, the Seller will reserve the property for you and start
the process by drafting the contracts for purchase. Unless you
write specifically a "get-out" clause in the deposit agreement,
for example "subject to clear title" or "subject to agreement on
the contract terms," the money deposited is non-refundable.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
4. Owning a condominium and
the related taxes
Foreigners owning a condominium in Thailand enjoy zero property taxes. Land and house taxes dont apply to
condominium owners. The buildings owner is responsible for the property taxes, but it is important to have a
lawyer make sure theres an escrow account tied to your property in case the matter of paying your taxes is
unclear. There are, however, other taxes tied to your purchase.

The Thailand Land Department charges 2% of the assessed value of all the transfers of land and property. This fee
is expected to be paid by the buyer when the day of the transfer of the ownership occurs.

If you sell your condo expect withholding tax fees, document fees, and taxes that may have been introduced
during the time of your ownership. The Thai government will put into play property stimulation programs geared
toward increasing property sales every once in a while so stay tuned to real estate news to know if this could affect
the sale of your property.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
5. The various steps of a real estate
transaction in Thailand (1/2)
Once you have decided in acquiring a property in Thailand you can
expect the following steps in order to become the owner:

3. It is highly recommended for your


lawyer to verify the purchase
1. Agree on the final price with the
agreement and other important
seller, the distribution of the various 2. You proceed to a down payment
aspects (the foreigner quota in the
taxes between you and the seller, to guarantee your purchase
residence, the title deed, the
the payment terms and the transfer intention.
mention of any collateral, no
date of the property.
unpaid common charges left by the
buyer etc.)

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
5. The various steps of a real estate
transaction in Thailand (2/2)
5. You will open a Thai bank
4. You will then meet with the account in order to transfer the
seller to sign the purchase remaining amount from oversea.
6. You will then transfer the
agreement and make a second This bank account will also
remaining amount to the seller.
deposit of around 10% of the enable you to pay your various
negotiated price. utilities bills and receive any
rental income.

7. You retrieve the various


8. You will meet (or via your lawyer
documents from the bank (Foreign
with a Power of Attorney mandate)
Exchange Transaction form, cashier
the seller at the Land department
checks), the seller (the purchase
in order to transfer the title deed.
agreement) and any other third
You are now officially the owner of
party document that is involved in
your new property.
the transaction.

This whole process usually takes between two and six weeks to complete.
You will have to reimburse the seller with a cashier's cheque for the common expenses, usually paid in advance for a period of six months or a year. You will also need to
pay electricity deposit for the transfer of the electric counter and other utility bills by cash only.

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37
Contact us today so we can start
looking for your dream property
+66 (0)9 9232 9337

info@mercurecapital.net

51/54 Green Peace Mansion, Pradipat 7, Phayathai, Bangkok 10400

Mercure Capital Ltd.


51/54 Green Peace Mansion , Pradipat road 7, 10400 Bangkok
Email: info@mercurecapital.net Tel. +66 (0)9 92 32 93 37