Any process concerning real estate in Thailand entails reception, layout and validation of documents in various authority bodies. Ownership documents (chanote) and project documents to get building permit, are executed in the Thai language. Agreements with the contractor as well as sale contracts are allowed to be executed either in English or in two languages: English and Thai.
To go through the Deal, the customer (buyer) will need legal support. The agency conducting the deal, acts as a consultant, additional guarantee for the validity and clearness of the deal.
Procedure of buying
The procedure of real estate buying can be divided into several stages:
1. Signing the Head of Agreements or the Deposit Agreement, where you specify the sum of the deposit, the final cost of the real estate, address and other information about the property, passport data of both buyer and seller, deadlines for fulfilling the liabilities. This agreement presupposes that in case the buyer doesn’t fulfill the liabilities, the seller will keep the deposit, or, vice versa, if the seller fails to fulfill the contract, the deposit is returned to the buyer. It’s also important, that the date of signing of the main contract is specified in this agreement. This document doesn’t need notarization.
2. Signing of the main contract and making the first payment (20-40%). This contract describes all the details of the deal, dates of payments, sums of payments, account numbers for payments, dates of transferring the property to the buyer’s ownership. This agreement has to be notarized.
3. If the deal has certain stages according to the agreement, then every payment has to be followed by a receipt note from the seller. The buyer makes payment to the seller’s account and saves the receipts about the money transfer. In case of buying the property under construction, the payment is made after the construction stage is observed and controlled. The function of controlling over construction can be entrusted to an agent as is specified in the main contract.
4. The final payment is made on the day of acceptance of property transfer to the buyer. The registration of the document is conducted in the Land Department. This procedure requires advance application from the seller to the Land Department (30 days before the deal). Submission of the application doesn’t require the presence of the buyer, but it is an important issue, which influences the date of property tranfer to the buyer.
The cost of legal services
The cost of legal services accompanying the deal of selling a house or an appartment on Phuket by a legal agency depends on the choice of options (control and draughting the agreement, verification, power of attorney) and the terms of the deal. It can vary around 25-60 thousand Baht
Registration of Thai company, provision of nominee shareholders will cost around 40-60 thousand Baht.
Registration of condominium appartments presupposes different forms of ownership. #You can read more about forms of estate ownership in Thailand here>