Escrow Accounts in Thailand. Escrow is a neutral holding arrangement where money, documents, or property are kept by a licensed third party and released only when agreed conditions are met. In Thailand, escrow is most visible in real estate and large commercial deals, where it reduces counterparty risk and streamlines Land Office or closing-day logistics. Below is a practitioner’s guide to the legal basis, who may act as agent, how Thai escrows are structured, and the pitfalls to avoid.
Core statute: Escrow Act B.E. 2551 (2008).
Key features practitioners rely on:
Licensing: Only licensed financial institutions (e.g., banks) and approved escrow businesses may provide escrow services. Non-licensed “informal” holding of client funds is not an escrow under the Act.
Neutrality & mandate: The agent must follow the escrow agreement exactly; it is not a party’s advocate.
Segregation & release: Funds or documents are held separate from the agent’s own assets and released solely upon satisfaction of contractually defined conditions.
Remedies: If performance is disputed, the agent must hold (or interplead) until the parties resolve it or a competent authority orders release.
Escrow providers are also subject to Thai anti-money laundering (AML/CTF) rules (KYC, source-of-funds), and banks remain under Bank of Thailand prudential supervision. Practically, this means identity documentation, transaction rationales, and sanctions screening are standard at onboarding.
Off-plan condominiums: Stage-based releases (e.g., piling completed; structure topped-out; unit registered at Land Office).
Completed unit resale: Single release upon registration of ownership transfer (condo) or lease/usufruct at the Land Office.
Land with structures: Multi-condition closings—clearance of encumbrances, municipal approvals, utility arrears.
Completion accounts & price adjustments
Warranty/indemnity holdbacks
Regulatory or BOI-approval conditions precedent
Settlement sums held until filings are withdrawn and court orders recorded.
A Thai escrow has two backbone contracts:
Underlying deal (sale & purchase, JV agreement, settlement deed).
Escrow agreement among seller, buyer, and the agent. This governs:
Conditions precedent (CPs): All factual/legal conditions the agent must see before releasing funds.
Evidence and verification standard: What documents the agent will accept (e.g., Tor Dor 21 FET form for foreign inward remittances on condominium purchases; Land Office receipt; juristic person confirmation of no common-fee arrears).
Release mechanics: One-time or staged tranches; who signs release instructions; timing windows.
Default/failed-deal path: Refund logic if CPs aren’t met, including who bears bank charges and FX loss.
Dispute & interpleader: Where the agent will deposit funds if parties disagree (often the Civil Court) and cost allocation.
Fees: Flat, tiered, or % of consideration; who pays; VAT.
Flow for a condo resale (foreign buyer)
Buyer deposits purchase price (or agreed tranche) to escrow.
Agent completes KYC/AML and documents checklist.
Parties attend Land Office; transfer registered; new title deed and official fee receipts obtained.
Agent verifies CPs and releases funds to seller (often same day).
Any residual items (e.g., condo juristic refund of sinking fund) handled per escrow schedule.
Identity & authority: Passports, Thai IDs, corporate affidavits (not older than 3 months), board resolutions, POAs.
For foreign-currency funded condo purchases: FET form or bank letter evidencing inward remittance in foreign currency for the specific unit (required later for future repatriation).
Property hygiene: Latest juristic person letter confirming common-area fee status; copies of Chanote (title deed) or Condo unit title; Tabien Baan (house book) where relevant; building permit for land/house deals.
Encumbrance clearance: Bank release letter and mortgage discharge plan if seller’s unit is pledged.
Tax receipts: Specific business tax/transfer fee/stamp duty/withholding tax calculations and proof of payment.
Fees: Typical ranges are 0.25%–1.00% of consideration for property deals; large commercial escrows trend lower on a % basis with minimums.
Time: The KYC/AML phase drives timing; expect a few business days for individuals and longer for multi-layered corporate chains.
Currencies: Property escrows with foreign buyers often hold THB, but the inbound funds arrive in FX; banks convert and issue the FET documentation. Align your escrow bank and remitting bank early to avoid mismatches.
FX risk: If a deal fails, refunds in THB may expose the foreign buyer to FX loss. Sophisticated escrows set the refund currency and rate basis (TT buying/selling rate at a defined time) or permit same-currency refund net of costs.
Deadline slippage: Include a long-stop date; if missed, refund is triggered less specified costs.
Ambiguous CPs: Thai agents avoid subjective conditions. Draft CPs objectively (“Land Office receipt code … present”) rather than “satisfactory due diligence.”
Partial performance: For staged construction, attach a milestone matrix with dated engineer certificates and statutory approvals.
If seller and buyer give conflicting instructions, the agent will freeze and (i) follow the dispute clause—court or arbitration—or (ii) pay into court (interpleader). Courts apply the escrow agreement strictly; agents risk liability only if they deviate from the mandate or act negligently. Parties bear their own losses from the underlying deal except as the escrow contract reallocates (e.g., forfeiture or liquidated damages clauses).
A. Off-plan condo delay:
Milestone-based escrow releases 20/30/30/20%. Developer misses EIA-related milestone. Agent withholds the 30% tranche. After 60-day cure fails, buyer elects termination under the SPA; escrow refunds buyer-minus agreed admin fees. Result: time lost, capital preserved.
B. Mortgage discharge at closing:
Resale unit pledged to Bank X. Escrow holds buyer funds; on closing day the agent wires the exact redemption figure to Bank X, obtains discharge letter, and only then releases the balance to seller. Land Office registers transfer and mortgage cancellation in sequence—clean title delivered.
C. JV contribution escrow:
Two companies commit THB 80m each to a JV. Escrow agreement releases both contributions simultaneously when DBD registration and shareholder structure are complete. Prevents the classic “one contributes, one stalls” asymmetry.
Condominium Act: For foreigners, funds must be remitted from abroad and evidenced (FET) to qualify for ownership and future repatriation. Build this into escrow CPs.
Land Code restrictions: Foreigners can’t own land freehold (outside exceptions), so escrow often supports long-lease + usufruct/surface structures—release occurs upon registration of the real rights, not just contract signature.
Tax at transfer: The agent commonly verifies withholding tax and transfer fee calculations to prevent post-closing liabilities becoming a dispute trigger.
Data protection: KYC packets contain sensitive personal data; agents should apply PDPA safeguards and limit use to escrow purposes.
Lawyer trust/clients’ accounts: Common but not statutory escrow; carries higher counterparty risk.
Bank guarantees/standby LCs: Strong for performance security but costlier and less flexible than escrow.
Retention in the purchase contract: Simpler for small sums, but enforcing retention disputes still lands in court—no neutral holder.
Precise CPs with document codes and issuing authority.
Release timetable (cut-off times, weekends/holidays, SWIFT windows).
Authorized signers and specimen signatures for instructions.
Refund currency and FX rule (bank and rate source named).
Fees & VAT and who bears them in each outcome.
Dispute venue and agent’s right to interplead.
KYC pack required up front (so the clock starts early).
Interest on balances (who gets it, if any).
Force majeure (Land Office closures, system outages).
Survival & records (retention period, PDPA notices).
Using “notarized lawyer holding” as if it were escrow: Not equivalent; no statutory neutral duties.
Missing FET trail for condo buys: Jeopardizes both registration and future repatriation.
Vague construction milestones: Leads to release fights; require objective third-party certificates.
Ignoring currency controls at home jurisdiction: Some buyers face outbound controls; align with the Thai bank’s compliance early.
Assuming escrow is standard market practice: It’s not yet universal; many counterparties resist unless educated on benefits.
Thai escrows work best when the escrow agreement is as detailed as the sale contract: objective conditions, documentary proof, clear release/refund logic, and pre-wired compliance (KYC, FET, taxes). Used correctly, they neutralize the riskiest interval in Thai transactions—the gap between paying and actually registering rights—transforming high-stakes closings into predictable, auditable workflows.
Property Mortgages in Thailand. In Thailand, mortgages are a critical tool used to secure obligations involving immovable property. Unlike some common law jurisdictions where mortgage lending is heavily institutionalized and standardized, Thai mortgage law follows the civil law tradition, requiring strict formalities for creation, registration, and enforcement.
This article provides an in-depth legal and procedural understanding of property mortgages in Thailand, including key statutes, eligible parties, the role of the Land Office, foreign ownership limitations, and enforcement mechanisms in the event of default.
Thai mortgages are governed by the Civil and Commercial Code (CCC), Sections 702–745, and supported by subordinate regulations issued by the Land Department, Bank of Thailand, and relevant financial authorities.
A mortgage is a real right over immovable property to secure an obligation, usually a debt.
The mortgagor (owner) retains possession and use of the property, but the mortgagee (lender) has a registered security interest.
If the debtor defaults, the mortgagee may force the sale of the property through court action.
Under Thai law, only certain types of immovable property and associated rights can be mortgaged:
Land with a valid title deed (Chanote, Nor Sor 3 Gor)
Buildings constructed on owned land
Condominium units (with valid unit title)
Registered lease rights (in some cases)
Superficies or usufruct (in limited scenarios)
Property with incomplete or non-transferable title, such as Sor Kor 1 or Por Bor Tor 5, cannot be mortgaged.
The mortgagor must be the legal owner of the property or holder of a mortgageable right. This party pledges the property to secure the obligation.
The mortgagee is typically a financial institution, such as a bank or credit company. However, private individuals or juristic persons (e.g., companies) may also act as mortgagees.
Note: Banks must be licensed by the Bank of Thailand, and foreign lenders require special approvals to extend credit to Thai residents or entities.
A mortgage in Thailand must be registered with the Land Office in the jurisdiction where the property is located. Without registration, the mortgage has no legal effect against third parties or in case of enforcement.
Written mortgage agreement (in Thai)
Signed mortgage form issued by the Land Office
ID/passports of parties
Company documents if juristic entities are involved
Land title deed (original)
Payment of mortgage registration fee (1% of loan amount, capped at THB 200,000)
Stamp duty (0.05%)
If the mortgage is created in favor of a foreign lender or mortgagor is a foreigner, additional documentation and scrutiny will apply.
Foreign individuals and entities face strict limitations on owning and mortgaging real estate in Thailand:
Foreign individuals cannot mortgage land unless they own it legally, which is rare due to land ownership restrictions.
They may mortgage condominium units, provided they comply with the Condominium Act B.E. 2522 and own the unit in their name.
Mortgaging leasehold rights is not commonly allowed unless the lease is registered and specifically structured to allow such encumbrance.
A foreign individual or company may be a mortgagee, but the mortgage will be subject to:
Approval under Foreign Exchange Regulations (if funds are remitted from abroad)
Possibly requiring a Foreign Business License if lending is deemed a business activity
Caution: Courts may scrutinize transactions that attempt to circumvent foreign land ownership laws by using mortgage structures as de facto ownership substitutes.
Condominium units may be mortgaged similarly to land. However, the mortgage must be registered with the Land Department along with:
The unit’s title deed (separate from the building’s land title)
Debt agreement (loan contract)
Consent from co-owners in certain cases (e.g., if unit is jointly owned)
Note: If the mortgagor defaults, the mortgagee must seek court approval before selling the condo unit through public auction.
Mortgages may be extinguished by:
Full repayment of the secured obligation
Release deed signed by the mortgagee and registered at the Land Office
Prescription (Statute of Limitations) – 10 years for personal loans; 5 years for commercial credit
Court-ordered foreclosure or auction
Once the mortgage is extinguished, it must be formally released to clear the encumbrance from the title deed.
If the mortgagor defaults:
Thai law requires judicial foreclosure; self-help remedies or private foreclosure are not permitted.
Steps:
Mortgagee files a claim with the civil court
Court determines validity and amount owed
Court orders auction of the property
Proceeds are used to satisfy the debt
The mortgagee must notify the mortgagor in writing and allow reasonable time before initiating legal action.
If auction proceeds are less than the debt, the mortgagee may sue for the shortfall.
If auction proceeds are more than the debt, the surplus is returned to the mortgagor.
Thai law prohibits creating a mortgage for more than the actual debt. False declarations may be considered fraudulent.
If multiple mortgages are registered on a single property, priority is determined by registration date. Second-ranking mortgagees face higher enforcement risks.
Before accepting a mortgage, the lender or investor should:
Verify clear title
Review existing encumbrances
Conduct a Land Office title search
Confirm land use and zoning compliance
Foreign currency-denominated mortgages must comply with Bank of Thailand foreign exchange rules, including proper remittance documentation and purpose codes.
In cases where a mortgage is impractical, parties may consider:
Pledge of company shares or accounts receivable
Personal guarantees or third-party guarantees
Lease with option to buy (requires careful structuring)
Usufruct or superficies rights, though non-transferable, can provide partial security
Each alternative must be evaluated carefully under Thai law, especially where foreign nationals are involved.
Mortgages in Thailand are an effective but formalistic mechanism for securing obligations involving land and property. Strict statutory requirements and procedural formalities, particularly with respect to registration, enforcement, and foreign involvement, make professional legal guidance essential for any party considering a mortgage transaction.
While banks remain the dominant lenders, private mortgages—especially among investors, business partners, and family members—are increasingly common. However, failure to properly register or document the mortgage can render it legally void and unenforceable.
For both Thai and foreign parties, navigating the legal intricacies of mortgages requires diligence, regulatory awareness, and expert legal support.
Title Search in Thailand. When buying property in Thailand, conducting a thorough title search is crucial to ensure a smooth and secure transaction. A title search verifies the ownership history of a property, identifies any encumbrances or liens, and helps prevent potential legal disputes.
By conducting a thorough title search before purchasing property in Thailand, you can protect your investment and avoid potential legal complications.
Transferring Title Deeds in Thailand. Achieving and transferring property represents a momentous occasion in an individual's life; therefore, knowledge of the legal procedure is essential for a seamless transfer of ownership. The transfer of title deeds, referred to as Chanote in Thailand, is a methodical process encompassing adherence to local regulations, financial transactions, and the submission of legal documentation. This article offers a comprehensive overview of the procedure for transferring title deeds in Thailand, including its legal implications, significance, and essential steps.
A. Legal Ownership: The title deed functions as a legally binding document establishing ownership, safeguarding and providing assurance for property rights.
B. Transaction Validation: Property transactions are verified to be legitimate and the vendor obtains the property's rights through the use of properly transferred title deeds.
C. Asset Valuation: Particularly in the context of loans, mortgages, or property development, title deeds are crucial for acquiring property valuations.
A. Chanote, the most secure and favored type of title instrument, furnishes comprehensive particulars pertaining to the property's perimeters and land utilization.
B. Nor Sor 3 Gor: In contrast to Chanote, this land title deed offers a more restricted scope of details regarding land boundaries.
C. Nor Sor Sam: This is a less secure, lower-level title deed that only provides approximations of boundaries according to aerial surveys.
A. Preliminary Due Diligence: Perform an exhaustive inquiry into the ownership record, ownership history, and any encumbrances that might impact the transfer of the property.
B. Purchase Agreement: Compose and affix one signature to a purchase agreement that delineates the comprehensive stipulations of the property transaction, encompassing the purchase price, payment schedule, and transfer conditions.
C. Title Deed Examination: Obtain the services of a certified legal professional to perform a thorough evaluation of the title deed in order to verify its validity and ascertain that it is devoid of any encumbrances.
D. Tax Clearance: In accordance with Thai legislation, remit the requisite transfer fees, which comprise the specific business tax, registration duty, and withholding tax.
E. Funds Transfer: Substantiate the vendor with the agreed-upon purchase price in accordance with legislative and financial protocols.
F. Transfer Registration: Finalize the registration process for the transfer of title deed at the Land Office located in the vicinity, where the ownership particulars shall be revised.
A. Land Zoning and Restrictions: Confirm that the property is properly zoned in accordance with local zoning regulations and for the intended use.
B. Encumbrances and Liabilities: Conduct an examination of the property to identify any extant mortgages, liens, or legal claims.
C. Tax Delinquencies and Fees: Prior to the transfer, verify that all property taxes, utilities, and related fees are in full payment.
D. Transfer Costs and Fees: Taxes, stamp duty, and legal fees are among the various fees that may be incurred during the transfer of a title deed.
A. Title Deed Update: Inspect the local Land Office to have the title deed updated to reflect the new ownership information.
B. Utilities and Services: Transfer to the new proprietor the name associated with utility services, including water and electricity.
C. Property Insurance: Protect against potential liabilities or risks by arranging for property insurance coverage.
In Thailand, the transfer of title deeds is a meticulously planned undertaking that requires due attention to legal, financial, and administrative factors. Prosperous and secure property transactions can be achieved through the implementation of diligent due diligence procedures, the involvement of competent legal professionals, and strict adherence to local regulations. Gaining knowledge of the importance and procedural intricacies associated with transferring title deeds enables individuals to confidently maneuver through the system, thereby guaranteeing a smooth and fruitful transfer of property ownership.
Property due diligence in Thailand is an essential process for individuals or companies interested in purchasing or investing in real estate. Conducting thorough due diligence helps assess the legal and financial aspects of a property, ensuring a secure and informed decision. While we can provide some general guidance on property due diligence in Thailand, it's important to consult with legal professionals and experts familiar with Thai property laws for comprehensive and up-to-date information. Here are some common aspects to consider during property due diligence:
Remember, property due diligence can be complex and country-specific. Engaging qualified legal professionals, property consultants, and experts with local knowledge is crucial to ensure a thorough and accurate assessment of the property's legal and financial aspects in Thailand.
When a loved one passes away, the matter of dealing with their last wishes must be handled. As the family grieves, a Thai probate lawyer will gather and help the family negotiate their way through Thai Estate Administration and Probate procedures.
Sadly, there may be instances when the family becomes involved in disputes about the deceased’s Last Will and Testament, further complicating and dragging out an already painful time. Once again, the skills of a Thai Probate lawyer become invaluable to ease and take the burden off the shoulders of the bereaved.
Despite how unpleasant it may seem, planning for the possibility of one’s demise while abroad is something that you have to think about. Considering this, you should ideally have your Last Will & Testament prepared in both your home country and Thailand. The reason for this is that having a Will that covers Thai assets drawn up in your home country will cause delays and complications as it must be translated and submitted for approval to Thailand’s governing body.
Your transactions in Thailand become of value once you sign the contract and make an initial payment, meaning you will already have an asset to consider for your estate planning. A Thai Will covers your assets in Thailand, including personal property, vehicles, bank accounts, and investments.
Upon death in Thailand, a copy of the Will must be provided to the courts by a member of the deceased’s family or their attorney.
Probate is the process whereby the Last Will and Testament of the deceased is reviewed to ensure it is valid and authentic, i.e., drawn up by the deceased while they are of sound mind and body.
Thai probate law is applicable upon the death of a person, and his property and assets are to be divided among their heirs, family members, and any others mentioned in the Will. This is a court-supervised process and is intended to protect the wishes of the deceased and their heirs while complying with Thai laws.
In terms of initiating the transfer of the inheritance in Thailand, a court order must be obtained after proving that the person or persons receiving the inheritance is either a legal heir to the deceased or that they are mentioned by name in the Will.
According to Thai law, in terms of whether a foreigner can inherit from a deceased person in Thailand, a foreigner can inherit property from their spouse, a Thai national. However, a foreigner that inherits property this way can only take ownership of the property after approval from the Minister of The Interior and is subject to certain limits.
For those who own land under a company on a freehold basis, upon your demise, your property would not be physically inherited by your heirs. Instead, the property's value will be converted into shares and distributed accordingly. This can create incredibly complex situations requiring further litigation, yet one more reason to have a Thai Will drafted correctly.
A deceased person's assets in Thailand are transferred in their Will or, if no Will exists, by Estate Administration.
Estate Administration refers to the process of gathering and managing the estate of a deceased who has passed without a Will in place. This includes disbursing any debts and taxes and distributing the remaining property to the heirs.
Traditionally before the estate is distributed among relatives of the deceased, half of the estate will be given to their spouse, should the deceased have married before their passing. The remainder of the estate will be equally distributed among the family accordingly.
According to law, when a person dies intestate or has not executed a valid will, the entire estate is distributed among their heirs.
Under Thai law, there are six classes of statutory heirs. Each class inherits in the following order:
Under certain circumstances, the surviving spouse may also be considered a statutory heir, and there may also be instances of interested persons.
An interested person is defined as a person who has the interests related to the inheritance, such as a wife who did not legally register marriage but has acquired assets in the estate together with the deceased.
If a person passes away with no living relatives or spouse and no Thai will, the estate will fall under the administration of and be absorbed by the State.
In cases of Probate and Estate Administration, a court must approve the legal aspects and validity of the inheritance. It will appoint an executor or administrator to handle the estate’s affairs should the need arise.
The required documents for petitioning the court for the appointment of an administrator or executor of the estate are as follows:
The statutory heirs or the interested persons are eligible to submit the petition to the court for the appointment of Estate Administrator.
In Thailand, the court's authorisation is deemed the final judgment applicable as the confirmation document for estate administration. Whether the deceased had made a Will or not, a petition to the court for the appointment of the estate administrator must first be facilitated.
It is vitally important to have a Thai Last Will and Testament drafted as a foreigner. Thai Probate and Thai Estate Administration laws were put in place to ensure fairness between the heirs of the deceased assets and help alleviate the strain placed on their families and loved ones.
While it may seem harsh that the beneficiaries of the Last Will and Testament will not be able to receive or manage any assets without a court order. It is done for the benefit of the bereaved and to prevent complications and further unhappiness that may occur through family disputes.
Property conveyancing is the legal process that takes place when lawful ownership is obtained of immovable property. Each time a property is sold, a new transfer deed must be drawn up and registered. This ensures the security and certainty of an owner's title to their property.
If you are trying to settle a property dispute, need help with litigation regarding a property, or want to take over a property, it is advised to hire a property lawyer to help you navigate the property conveyancing process. A lawyer will help you understand the terms and conditions of a contract as well as make sure the contract conditions are respected. Additionally, if a client is dealing with a problematic tenant or landlord, a lawyer can offer advice on how to resolve any issues.
Before going into the property conveyancing process, it is worth mentioning the Civil and Commercial Code of Thailand (CCC). Because Thailand is a civil law country, the Thai Supreme Court opinions have a strong persuasive value as the source of all areas of Thai law, including real estate.
The Civil and Commercial Code is perhaps the single most crucial law when it comes to real estate sales in Thailand. Besides governing contracts, the CCC also creates ownership of immovable property and dictates its transfer. It also makes and controls the various rights that may be registered over immovable property, such as mortgage, lease, superficies, usufruct, charge, and servitude.
The Conveyancer will be responsible for always protecting the interest of his client. Keeping the client up to date with the conveyancing process and informed of the progress of the transaction
Advice on the content of the Offer to Purchase and advise on the cancellation of his bond, any penalties, notice periods, and other administrative charges which may affect the settlement figure
Obtaining the client's instruction before issuing any guarantees regarding the transaction and registering the transaction on or as close as possible to the date agreed to in the offer to purchase.
Advise the seller on his obligations regarding the offer to purchase to ensure that the transfer is not delayed.
Explain and have the client sign the necessary documentation to conclude the transaction, including the deeds for lodgement to minimise the risk of rejection of the documentation by the Deeds Office.
Inform the client of the transfer on the day of registration and inform them of the finances relating to the transaction within two days after registration.
The first thing a property lawyer is responsible for is doing an accurate property title search. This ensures that the potential purchase is legal and prevents fraudulent and illegal real estate transactions, leading to fines and or jail time. The lawyer must complete due diligence of the property.
Due diligence means that the lawyer must confirm that the sale of the property is legal. In that, the seller is allowed to sell the property before a purchase is made. This includes gathering information about the chosen property by physically inspecting the land, building permits, and any other relevant documents. The lawyer should also contact local courts to review any property buyer and seller records.
The next job of the property lawyer is to facilitate the transfer of the property title correctly, as errors may delay or even lead to the transaction being cancelled. Specifically, the lawyer will be supervising the following when transferring the title by ensuring all the required fees are paid to the Land Department. The taxes and transfer fees needed are paid directly to the Land Office in Thailand. Should the buyer not be able to do this in person, the lawyer can be authorised to do so by power of attorney.
When a foreign individual decides to purchase a property in Thailand, the funds usually come from a foreign source and not from within Thailand itself. One of the reasons for this is that the Thai government wants to increase the amount of foreign currency in the Kingdom. Due to this, there is a need for a Foreign Exchange Transaction Certificate (FETC).
The FETC is precisely needed when the property will be transferred to and registered under the name of the foreign national. This certificate provides proof that the funds required to purchase the property have come from abroad and that the foreign buyer is complying with the requirements for bringing funds into Thailand.
To be considered valid, the form must contain the amount in foreign currency, the amount converted to, and in Thai Baht, the names of the fund’s sender and receiver, the intended use of the transferred funds.
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In conclusion, property conveyancing in Thailand is similar to the rest of the world. However, just like in the rest of the world, it can be tricky for those unfamiliar with it, especially if the buyer is not a Thai native. A Thai property lawyer will ensure that the client follows all the requirements laid out by the Civil and Commercial Code of Thailand are carried out correctly, and everything is done in accordance with Thai law, including due diligence is conducted, drawing up sales contracts, and the transfers of foreign currency. Keeping the client up to date and informed throughout the process.
Many people flock to Thailand for tourists wanting a sunny vacation. The country has become a popular location for anyone interested in property investment. Foreigners purchasing condos, in particular, has become a popular trend.
At the moment, Thai property laws don’t allow foreigners to buy property in Thailand. However, there are ways that foreigners can legally purchase a condo in Thailand. Thailand’s Condominium Act doesn’t have as many restrictions for foreigners buying condos.
Thailand’s Condominium Act was first passed in 1979, and since then, the Act has been amended three times. The Thai government created these amendments to ensure that the law stays relevant to the practices of the private development sector.
The government made the latest amendment to Thailand’s Condominium Act in July 2008. This amendment gave condominium owners extra protection and made the existing protection measures more effective.
Under the Thailand Condominium Act, a condominium is a building that can be separated into different units that people can purchase. Condos can include personal and shared properties.
The Act doesn’t specifically outline any details about the requirements for a property to be identified as a condominium. A building can be considered a condominium as long as it can keep ownership separate from the area. Each site will have joint ownership in the common property and private property ownership with a condominium.
The condominium doesn’t need to adhere to specific space or height requirements. According to the Condominium Act, there isn’t a required minimum amount of condominium units that buildings need to have.
However, under the City Planning Act and Build Control Act, buildings in Thailand have to comply with zoning regulations. For example, if you own property in region X, the Build Control Act might restrict you to only constructing a single-one level building that’s no higher than six metres.
In this same example, the Build Control Act might restrict the total building area to a maximum of 75 square metres. The Build Control Act might also require that the space around the building isn’t less than 75% of the land.
There are a few ways foreigners can be considered suitable for buying a condo in Thailand. Below are the following ways foreigners can be eligible for purchasing a condo in Thailand.
For foreigners who are considering purchasing a condo in Thailand, there are plenty of laws that they will need to consider. Today, the fundamental laws that foreigners need to consider are the following:
There are other laws that foreigners might need to consider when buying a condo in Thailand. These different laws will mean that you need to consult a property lawyer to assist you with the other legalities in the buying process.
Before you finalise any condo purchase, you should consult a property lawyer. A lawyer will be able to assist you with the legalities of buying a condo in Thailand.
A lawyer will also be able to conduct background checks on the building and the seller. In some cases, you might need a lawyer who will also be helpful if you have to deal with a big problem with buying a condo in Thailand.
When looking for a condo in Thailand, there are different ways that you can go about it. You can choose other methods depending on your situation.
You can get in touch with a real estate agent and ask them to assist you with finding a condo that suits your needs. Agents are a handy resource for foreigners looking to buy a condo in Thailand.
Agents will often be connected to sellers, and they will work on advertising both old and new properties. Usually, an agent will give you a list of condos that will fit your budget and your needs. They might even assist with applying for a loan from a bank.
Contacting a real estate agent will save you a lot of time and hassle. You won’t have to pay for a real estate agent to help you look for a condo. The agent will get paid from the percentage of the money they get from when the condo is sold.
Another way to find a condo in Thailand is to search online. Searching online is possibly the easiest way to find a condo to buy in Thailand.
You can even search online to find a real estate agent in Thailand to assist you. Plenty of real estate agents will showcase their information on their websites.
Many real estate websites will advertise condos as an investment. Because investments are often seen as investments, most websites will showcase condos in affluent or good locations.
The websites will also share how you will be expected to pay for booking fees and down payments. Just keep in mind that what you see online might not be accurate, so it will be best to visit the condo before you make the purchase.
When you’re searching offline for a condo to purchase in Thailand, it’s always best to do your research in person. You can do this by visiting the showrooms of new property developments. You can contact the office staff for older properties and inquire about buying options.
There will be a salesroom built for new condos under construction, especially with showrooms for prospective condo owners. Older buildings will also have information boards for owners to share photos and information about condos available for purchase.
With buying a condo in Thailand, it’s essential to know what to expect or what’s expected from you during the process.
Knowing and understanding your rights and obligations is extremely important when buying a condo in Thailand. You might not be familiar with Thailand’s property laws and processes, which will most likely be different from your country’s laws.
A lawyer will be handy with understanding these rights and obligations when you’re buying a condo in Thailand. They will be able to assist you when you’re signing the necessary paperwork because they will be in Thai.
Employing a reputable lawyer will ensure that you aren’t being scammed by reading through the contract. The lawyer will ensure that it is transparent and above board. This step might seem unnecessary, but it’s important because you won’t sign the English legal contracts.
It’s also important to remember that the seller is trying to sell their property to you, and they might try to bend the truth a little so the property will sell. This can happen even if the seller has good intentions.
This step is essential when purchasing new condos in Thailand that are still under construction. In most cases, if you decide to buy a condo that’s off-plan, you will be given a projected finish date instead of a fixed date. The date will only become more fixed when the construction gets closer and closer to completion.
In these contracts, the developers will often include clauses about the construction delays.
For example, a clause might state that if there is a delay for more than a certain amount of days, you as the buyer might be entitled to some kind of compensation.
When buying a condo in Thailand, there are some essential legal documents that you will need for the purchase and the registration of your new condo.
You will also need to have copies and the originals of your official documents, such as your visa, work permit, and passport. If you’re purchasing a condo under a Thai national’s name, you’ll need their identity document and another form of ID.
The following document you’ll need and probably the most obvious is the contract. The contract will contain all the required information about your condo, including the fees and the timetables (if you’ve decided to purchase a new condo). The contract will include information about the procedures, payments and registration of your condo.
You'll need the third official document is the Foreign Exchange Transfer forms (FET). The FET forms were previously known as Thor Thor 3 forms. These forms show that you’ve transferred the money for the condo purchase from abroad, and it has arrived in Thai baht.
This form is crucial because the money required will arrive in Thailand in its original currency. Only then will the Thai bank convert the funds from the original currency to the Thai baht.
If you’re going to make multiple transfers for your purchase, you will need numerous FET forms. So, for example, if you made three transfers, you will need three FET forms.
When you get to the transfer stage in the process, there will be some fees that you will need to pay, and they will need to be included in your contract. As a buyer, you might be responsible for the transfer fees.
When you move into your condo, you will need to pay money into the sinking fund. This fund is the initial money paid by new condo owners. You might have to pay for installing an electric metre and water in some cases.
Just remember that you, as the buyer, shouldn’t be responsible for stamp duty or business tax. These taxes and fees are the responsibility of the seller.
When the taxes and transfer fees have been paid, you will get a Tabien Ban book. You will get a yellow book if you’re a foreigner and a blue book for Thai nationals. This book is an important document, especially if you want to sell your condo at a later stage.