Purchasing a property e.g. a house and condominium in Thailand, in most respect, may similar to purchasing a property in other countries. Nevertheless, the actual process can be impenetrable and onerous, especially if you (as a foreigner) does not speak or read Thai language and/or do not have a basic knowledge of Thai laws. However, this article will provide you with a basic knowledge and guideline which shall be undertaken prior to purchasing the property in Thailand.
Step I – Do Research
The first step is to do a research. Essential factors which shall be taken into your consideration are property’s location, property condition e.g. new or pre-owned, type of property e.g. condominium or house, your affordable budget, and financial options for a foreign buyer. Please note that for the foreign buyer (or non-residence), it would be relatively difficult to find a local institution as a lender nor a low interest rate, but some international financial institutions may provide a loan to the foreign buyer but the interest rate would be relatively high. This step shall include visiting the property to see the current physical condition of the selected property and find a comparable property(s) which would help you to make your decision much more effectively.
Step II – Engage a Realtor and a Lawyer
The second step is to engage a realtor. The realtor, with its local assistance and expertise, can assist you to determine the best property and sale price. The quality realtor that familiars with local market and seller(s) can successfully bargain and obtain the best sale price for the foreign buyer. Additionally, you may engage a quality lawyer to assist and guide you throughout the whole acquisition process. The lawyer can conduct the legal due diligence investigation against the targeted property and verify if the targeted property is belonged to the seller and it is transferable without any incumbrance — the lawyer can provide a legal advice on taxes and expenses related to the transfer of the targeted property as well.
Step IV – Sale and Purchase Agreement
The third step, the lawyer can assist you to review and finalize the terms and conditions of the Sale and Purchase Agreement (“SPA”) which is usually prepared by the seller in order to protect your interests in the event of the delay in construction and/or transfer the ownership of the property. The general terms and conditions of the SPA should stipulate (a) details of the targeted property, (b) sale price, (c) term of deposit and payment, (d) transferring date, (e) transferring cost and expenses, and (f) default and termination.