HOUSE BUYING GUIDE FOR THAILAND

      Check your foreign currency exchange rates against the Thai Baht with Bangkok Bank.

We feel it is a good time to buy property in Thailand. Banks are lending & property prices are now dropping due to the insecurity of the present economic situation, except oil.. Thailand SET index has also been dropping as foreign investment is tending to shift to other countries. The situation with The Baht, and the USA and Japan's firm belief in defending the Yen,  won't change much from what it is. If anything perhaps few Baht swing only. LAND AREAS: 1 rai = 4 ngarn = 400 wah2 = 1600 m2; 1 talang wah = wah2 = 4 m2; 1 acre = 2.53 rai & 1 ha = 6.25 rai 

To date foreigners may own

  - a unit in a registered Condominium

  - a building (as distinct from its land)

  - a registered leasehold of up to 30 years for all types of titled land (and/or buildings).

  - a company can purchase land and buildings 49% foreign shareholding but must carry out business as well.

  - more than 40% of a condominium unless done in Company form.

  - 49% max of land/ buildings in a company

  - 1 Rai of land if they invest 40m baht in Thailand.

  - Usufract Interest or (sidhikepkin)  allows a foreigner to have temporary ownership to certain things in Thailand. Its really limited to 30 years but can be renewed just like a lease.


However, a 30-year lease can be a good idea with right to renewal to a freehold purchase, or a Thai company (7 PARTNERS) can be established with Thai majority shareholders. Foreigners own 49% shares in the company buying land but we can assist you to make sure your company is safeguarded. Remember if you need advice check first before you commit yourself.

 

BUYING YOUR HOUSE:

Thailand has so many different types of properties for sale that whatever your dream home is, you can realize it here if you do the paperwork right. Prices are a lot cheaper than Western houses but some aspects need close scrutiny especially wiring, water & most importantly the deed title. Now that you want to buy a house what should you look for? 

The first thing you need to do is obtain the services of a reputable real estate agent or lawyer on your behalf. The Thailand Realty Industry is not regulated so watch out for agents forcing you to sign contracts, & check the title deed to make sure the property is what it says. Do yourself a big favour and obtain a House Inspection report which in effect pulls the holes out of the property! Some buyers have bought the house only to find the land is on a different title & visa versa or the cracks have been disguised. Once you buy then its your problem. Many Estates will try to sell a house in a developing block which has but one title with say 10-20 houses on it. They probably have 2 mortgages and want to unload the houses before they pay off the loan & secure the titles for their owners. Or will they???--- we had a case & saved the foreign buyer 2.8m baht that he would have lost if he did not use our service. The same goes with the boundaries of the property which need to be the same as the title deed. In Thailand there's no survey pegs as such but they do use concrete pegs & it is an important point. Sometimes vendors deliberately understate property area or move so called pegs. DO NOT pay any down payment until you actually view what you are buying & only after you have had the title checked by a lawyer. If the  building is under construction or the land is having a subdivision look carefully at the provisions for issuing a title, and easement rights for say roadways. If you are a foreigner you can lease for 30 years or form a company to hold the house if you are going to do business. Remember also do not start a company for the sake of securing your house. Immigration and Company Registration are now checking all foreign companies for employees and they will be interviewed as well as what business you are doing???? This law has always been but now it is being enforced

WHAT IT ALL MEANS:

Sor Kor 1This document means that land occupants are occupying or making use of certain land plots, whose ownership has not been claimed by any entity. The document does not indicate legal possession of the informer so one cannot transfer the ownership of the property to any one else. The Sor Kor 1 is rare now as the government's land ownership legislation has covered most area of the country.

Nor Sor 2 states the government's permission for person or legal entity to make use of land temporarily. Need to utilize at least three-quarters of the land plot within three years after the document issuance. This right is non transferable. At the finish, land occupants can seek the right to demand higher privileged title deed.

Nor Sor 3 is a governmental letter certifying a utilization of certain land plot by certain people and that the plot of land has been surveyed and its official map created.

Nor Sor 3 A is similar to the Nor Sor 3 certification. The only difference is the map survey of the land plot based on an aerial-viewed photograph of the land.

Ownership Title Deed or chanote is the ultimate certification of land ownership. Holders of the title deed have full rights to transfer or sell the properties and to bar other parties from violating their rights over the land protected by the ownership title deed law.A yellow title book or Thor. Ror 13 is given to foreigners under the issue of HABITATIONAL RIGHT or USUFRUCT or SUPERFICIES

OWNING THE HOUSE / LEASE THE LAND:

Property: Any foriegner coming to Thailand can register any type of building in their name with the Land Office under Thai law, and a foreigner can own the home on the land but not the land (eg, building, factory or a house) erected on the land. Certainty of possession of land and house is assured by being the owner of the house. If arranged with a laweyer by way of contract then the house will be separate from the land, and will not be a component part under the Civil Law. Ownership of buildings is file at the Land Office and the Lessor cannot seize the house upon expiration of the lease.Buildings other than condominiums do not have any form of title document, but their sale or long lease can be registered at the Amphur (district) land office. Proof of ownership must be established either from proof of construction or a document showing sale-purchase (do not confuse this with the House License document, which is only a register of the house occupants).

Transfer of a building, as distinct from its land, requires the posting of 30 days public notice (to see if anyone wishes to contest the ownership). Foreign nationals (aliens) may own any building (as distinct from its land) and may register such transfer of ownership into their names at the local district office.

 

BUILDING YOUR HOUSE:

Recently in 2010 we have been asked to help foreigners who have paid too much to have their house built. Please note the following----there are 3 types of builders in Thailand:

1/. A builder 2/. A broker 3/. a worker/builder. Those who have been caught out are using (2) which could be a friend who procures a builder for the foreigner then has a separate contract with the builder for his cut which is 1/2 of the asking price. Thus you are giving money away & in fact are being ripped off as inevitably the actual builder will never be able to meet his deadlines. Plans & fees etc should not be more than 50,000 baht yet we have seen charges of 400,000 baht. The fees for 1 sq metre is 1/2 a satang which is not even a baht. If you need a good builder in Chiangmai and architect refer to your architect for the prices. You also need to have a builder who can complete an average house in 3-4 months & check his equipment and formwork supplies, how many workers he/she has & work he/she has carried out. Talk to the referrals & your architect to see if they keep to their word. Remember also Thai holidays workers will stop work on buddhist holidays and funerals etc. Make sure the contract is overseen by a lawyer or ask us as we can give you a quote with times etc if you want us to do.  Tel (00-66)019527812.  We have seen single storey houses charged at 6.8m baht when the price should have been 1/2 this. Just remember having a Thai friend doesn't necessarily mean they are a builder---they are only getting a commission --when it comes to progress payments and they ask in advance you could find yourself in a bad situation. Itemize the materials and also how many men they will have on the job and also if building multi-stories, their deadlines and time limits. 

Prices per sq metre to build are approx: 7-8,000 baht. But, remember this will vary according to the extras and items like marble and appliances etc.

OFFERS FROM DEVELOPERS
All developers in Thailand can and will offer you discounts and extras just to get your business. If youre not happy with some detail ask to change or add on to. Compare what they might offer you with what you would like. Look for Special home loan packages, Extra loan rate -- nowadays, local banks offer home buyers rates that are even below their minimum lending rates (MLR), Discount on land price, Gift voucher, extra room etc & ground maintenance. Have everything in writing. If the phone doesn't work and they say it will be installed next week or month don't believe a word same with the water, gas lines if any etc. Do not pay a booking fee as then you are locked in. Never put deposit down until your lawyer has searched the title out.

ESCROW SYSTEM When making a down payment on unfinished project, protect your money  from fraud by the Escrow account system which will ensure your money will not be paid, unless the developer completes construction of your new home and meets the agreed requirement on specification. If you decide to build use a [ lawyer

We highly recommend you obtain a Title search and House Inspection report before you purchase ANY property in Thailand. Cost 7000 baht Comprehensive Title search as well as House Inspection fee. 

WHY USE OUR SERVICES: 

We work for you (Both Thai & foreign consultants )
No hidden charges-everything is up front.
Guaranteed conveyancy help &  Company, work permit & land  setup for foreigners
Because you have the benefit of foreign help with our Thai lawyers and expat consultants
Full house onsite appraisals. Cost is 3000 baht for a house under 2 years old & 5000 baht for older houses plus travel. This 5 page report with pics and recommendations is a must if you want to know what your house is really like..

[ Tax 2010 Thailand property ] [ Best way to buy Thailand property ] [ Borrowing money] [ Using Thai Company to hold Property ]

 

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