Purchasing real estate in thailand can be a complex business
But with Raimon Land, we try to make it as simple as possible. Our Buyer’s Guide for international purchasers, available in English and Chinese, seeks to answer the most common questions you may have when making a property purchase. Download your copy today, or contact us for more information
RAIMON LAND BUYER’S GUIDE
A beautiful and intriguing country set in the heart of Southeast Asia, Thailand provides prospective buyers many reasons to purchase property, from the Kingdom’s geographical location in the region, a rich culture, excellent medical facilities, unparalleled infrastructure, a strong stable economy, potential return on investment, as well as good security and safety.
Award-winning Raimon Land offers a secure long-term investment for investors and home buyers with 20 completed residential projects with more currently under development in Thailand. The properties are on freehold, located in prime areas, and built with the finest materials of the highest quality specifications, and top-of-the-line amenities to ensure residents an unrivalled lifestyle experience.
Aimed at prospective international clients, Raimon Land’s Buyer’s Guide will steer you through the process of purchasing real estate in Thailand, whether in Bangkok, Pattaya, Phuket and/or beyond.
There are 3 key factors to assist in decision making:
- Purchasing property
- Payment and the transfer of money
- Ownership & other questions
Please contact us at 02-029-1888 for more information or to answer any questions you may have.
CAN FOREIGNERS PURCHASE PROPERTY IN THAILAND?
Thai law forbids foreigners from owning land but allows them to purchase freehold condominium units, with 100% ownership under a foreign name. However, for the overall building, the majority, or 51%, of the units must be owned by Thai nationals, and no more than 49% of the total unit floor area available to foreign buyers, or under a foreign entity such as a trust or company.
FREEHOLD vs LEASEHOLD
Most condominiums are sold freehold in Thailand. Raimon Land specializes in freehold developments because buying freehold as a foreigner means you can have ownership of the property forever, under your name, and be free of any kind of claims from any government entity. Such an advantage provides the buyer with increased confidence in purchasing freehold property in Thailand.
Comparatively speaking, valuations for leasehold condominiums may be lower than equivalent freehold developments. Under Thai law, leasehold property has a maximum registered lease term of 30 years.
ARE FOREIGNERS ALLOWED TO PURCHASE LAND AND/OR A HOUSE IN THAILAND?
As of 2021 foreigners are generally not able to buy and own landed property, such as houses, shophouses, commercial, retail or industrial land. There are some exceptions for very large corporate purchases with the approval of Thailand’s Board of Investment, but generally landed property is for the exclusive ownership of Thai individuals and Thai companies. Foreigners have no other option but to purchase condominium units only.
PAYMENT AND THE TRANSFER OF MONEY
WHAT IS INVOLVED WHEN A FOREIGNER PURCHASES A CONDOMINIUM IN THAILAND?
Raimon Land offers a variety of condominium developments in prime locations around Thailand. Typically, you have the option of buying first-hand from the developer directly or via an agent. Property may be sold off the plan, that is, before the building is completed, or shortly after completion. For second-hand property, you can also buy through the secondary market; Raimon Land offers a resale service for buyers to purchase select units in our development portfolio. But for this Buyer’s Guide, we will focus purely on new developments.
If you have decided to purchase a condominium from Raimon Land, the company will confirm whether you are purchasing within the 49% allotted to foreign buyers, at the time of making your reservation. In order to proceed, you will be required to show a copy of your passport, fill in the form provided by our staff and make the deposit as per the agreement. We will assist you with the rest.
You will be asked to sign a reservation form and pay a booking fee. This will allow you to reserve the condominium unit you are interested in to ensure that it is not offered to another buyer.
Two to four weeks thereafter, the Sale and Purchase Agreement will be signed by both buyer and seller, and the Contract Payment will be made. Some buyers at this time may ask for legal assistance to clarify and fully understand the Sale and Purchase Agreement, Raimon Land is happy to provide names and details of 3rd party local firms which can provide this legal service. Note that these firms have no relationship to Raimon Land and cannot verify the quality of their work.
Thereafter, if a building is still under construction, a series of payments will be made, as per payment schedule agreed upon at the time of reservation. To support our international buyers, Raimon Land offers payment schedules from 100%, 50% or intermittent installments on a less regular basis.
At the time of transfer, the buyer will inspect the property, and the remaining amount that is due will be either transferred or the buyer will work together with a source of finance. Once payment is made in full, the ownership of the property transfers from Raimon Land to the buyer, to be undertaken at the Land Department, with all paperwork completed as required by Thai law. Both the property inspection and the transfer process can be completed by an owner’s representative or attorney. The law does not require the buyer to be present in person.
CAN FOREIGNERS OBTAIN FINANCING IN PURCHASING A CONDOMINIUM?
Some foreigners can obtain financing, but a loan application will be subject to approval by a financial institution. Raimon Land cannot comment on the likelihood of getting a loan application approved.
Typically, a housing loan tenure may be from a minimum of 3 years to a maximum of 20 years. Note the appraised value is the value the bank assigns to the property and may be more or less than the purchase price.
Note that some financial institutions have a minimum value of purchase, below which they will not provide a loan.
Generally, the most important requirement banks are interested in is the source and stability of income, which does not have to be recognized in Thailand, but does need proof, which can include items such as pay slips, bank statements, etc. The income of the borrower should be stable and steady. This tends to favor salaried staff. The list of banks willing to lend to foreigners changes from time to time.
We can provide a list of potential lenders upon request at: firstname.lastname@example.org
WHAT IS THE CORRECT PROCESS OF TRANSFERRING MONEY?
When purchasing condominium property in Thailand, the foreign buyer is required to transfer from overseas the funds equivalent to the purchase price mentioned in the Sale and Purchase Agreement, under the buyer’s name. To obtain the title deed, the buyer is expected to show a confirmation letter from a local bank in Thailand at the time of transfer at the Land Department.
WHAT IS A CONFIRMATION LETTER FORM?
A confirmation letter form is an official bank document issued by the receiving bank upon receipt of foreign currency from overseas.
When purchasing a condominium unit in Thailand under foreign ownership, it is required to have a Bank Confirmation Letter equivalent to the purchase price mentioned in the Sale and Purchase Agreement under your name.
Without the appropriate Bank Confirmation Letter, you, as the buyer won’t be able to obtain the title deed of the property under foreign ownership. In order to obtain the Bank Confirmation letter, you will need to remit funds from YOUR account under your name as “The Owner” and “for the purpose of purchasing a Condominium Unit #, Project Name for Mr/Mrs Owner’s name” or “318069 for Mr/Ms Owner’s name.
Raimon Land will obtain the Bank Confirmation Letter unless you remit funds through a non-bank institution channel, then you will have to be responsible for obtaining the Bank Confirmation Letter yourself. Always verify whether or not that channel can help you get your Bank Confirmation Letter. Should the buyer provide insufficient payment details or doesn’t qualify for any Bank Confirmation Letter or equivalent documents, the buyer has the full responsibility to obtain the documents required for obtaining the title deed of the property under foreign ownership, as per the Sale and Purchase Agreement.
If the buyer is unable to obtain the title deed of the property under foreign ownership as a result of an insufficient Bank Confirmation Letter or disqualified equivalent documents, it could not regard Raimon Land as being in default. The buyer cannot claim a refund or cancel duties and liabilities under the Sale and Purchase Agreement due to an insufficient Bank Confirmation Letter.
CAN I TRANSFER FUNDS FROM A LOCAL THAI BANK ACCOUNT?
Yes, it is possible. If you would like to remit the funds to your own local bank account and subsequently transfer the money to the developer's bank account in Thailand to purchase a condominium, then you are responsible for obtaining the confirmation letter from your bank in Thailand.
CAN I MAKE THE PAYMENT IN CASH?
Raimon Land does not accept cash payment in any currency.
IF I LEAVE THE DETAILS OF PAYMENT INCOMPLETE OR STATE AN INCORRECT DESCRIPTION OF THE PAYMENT, WILL IT BE POSSIBLE TO FIX IT LATER?
In this case, Raimon Land will not be able to obtain a confirmation letter for you. However, you could contact your lending bank immediately to inform them to send an official letter directly to our corresponding bank saying that the payment was “for the purpose of purchasing Condominium Unit #, the Project Name” with authorized signatures from the bank included. We will need a copy of the letter to allow us to later keep track with our bank to obtain the confirmation letter. Please note that solutions to such cases depend on the circumstances and the financial institution remitting the fund.
SHOULD THE BANK REQUIRE MORE INFORMATION REGARDING THE OBJECTIVE OF THE MONEY TRANSFER TO AN OVERSEAS ENTITY, IS IT POSSIBLE TO USE A TRANSACTION CODE FOR BUYING OVERSEAS PROPERTY?
To qualify for a Foreign Exchange Transaction (FET), the transaction code for buying a condominium in Thailand is “318069”. You can state “318069 for Mr/Ms Owner’s name” instead. But we recommend that the full version is always preferable to avoid any misunderstanding that may arise.
CAN I GET A CONFIRMATION LETTER IN MY NAME WITH MONEY TRANSFERRED FROM ANOTHER ACCOUNT?
Yes, you can. if the details of the payment specify that the payment is for your name as “The Owner” and “for the purpose of purchasing Condominium Unit #, Project Name, for Mr/Mrs Owner’s name”.
CAN I PURCHASE PROPERTY UNDER A COMPANY NAME BUT MAKE PAYMENTS FROM MY OWN PERSONAL ACCOUNT?
Yes, it is possible as long as you mention the company’s name in the details of payment when you remit the funds. For example, if your company name is Holiday Home Co., Ltd., the details of payment should say “for the purpose of purchasing Condominium Unit #, Project Name, for Holiday Home Co., Ltd.”
WHAT FEES DO I NEED TO PAY WHEN I PURCHASE A CONDOMINIUM?
There are 3 major fees that you are required to pay when buying a condominium in Thailand.
1. Common Area Fee covers the cost of managing the condominium’s common property that includes cleaning common areas and maintenance, staff salaries, supplies, external suppliers, etc. The Common Area Fee is paid monthly by the condominium owners and is usually calculated at a set amount per square meter then multiplied by the actual area of the condominium unit. To ensure that each unit owner pays a fair amount shared between all the units in the building, the Juristic Person requires an advance payment of 12 months. For those renting a condominium unit, the Common Area Fee is paid by the owner.
2. Sinking Fund is a fund set aside to cover future capital expenses, such as major repairs of the building facilities, elevators and/or any other capital expense that is deemed necessary for the condominium’s purpose as a residential building. Usually, the Sinking Fund is a one-time fee that is paid at the time of purchase. When, and if, this fund is used up, then all unit owners may be contacted to top it up in accordance with the resolution of the Condominium Juristic Person.
3. Transfer Fee is the land transfer fee amounting to 2% of the property value paid to the government. Both the Seller and the Buyer shall be equally responsible for the transfer fee.
Stamp Duty & Administration Fee
When, in future, you wish to sell the property, a Specific Business Tax (SBT) amounting to 3.3% of the selling price is payable together with the transfer fees, which will vary depending on how long you have owned the property.
WHO MANAGES THE COMMON AREAS OF MY CONDOMINIUM?
According to Thai regulation, the management of the building is undertaken by the Condominium Juristic Person (CJP) that is controlled by a management “Committee” elected yearly by the owners of the building.
It is compulsory for all owners to pay the monthly Common Area Fee and the use of this money is controlled by the CJP, which decides how the building is managed, including selecting external suppliers such as a property management company to manage the common areas and control the budget. As the developer, Raimon Land plays an active role in ensuring the CJP is fully supported within the bounds of the law.
WHO TAKES CARE OF SUCH AMENITIES AS INTERNET, CABLE TV, PHONE LINE CONNECTIONS, ETC?
After the handover, Raimon Land will make available to the unit owner concierge service packages that will enable you to choose directly the service provider for internet, cable TV, telephone, etc. including many more services to suit your needs for added convenience especially for foreign nationals. In the event of a rental property, the renter typically will arrange internet and cable TV service providers themselves.
CAN I RENT OUT MY CONDOMINIUM?
Yes, you can. Because Raimon Land projects are situated on prime locations, there is good demand for our properties from the rental market.
The prospective renter signs an agreement with the owner, pays a security deposit, agrees to pay a monthly rental fee, as well as the payment of the utilities - water, power and internet/cable expenses - unless otherwise agreed. Properties can be rented either furnished or unfurnished, sometimes fully furnished may be easier to rent out. In the Thai market ‘fully furnished’ generally means provision of fitted wardrobes, etc., loose furniture, curtains/blinds, electronics and air-conditioning.
Owners can rent out their unit through an agency, or they can rent it out themselves. When using an agency, the exact terms will depend on the agency. Often the fee is set at 1 month for an annual contract, and no further payments are made if the tenant chooses to renew. Raimon Land developments employ a resale and leasing team to ensure prompt service and assist you should you have enquiries.
For more information please contact our team at email@example.com.
CAN I SELL MY CONDOMINIUM?
Yes, you can. Raimon Land provides resale services, and there are also a number of capable third-party agents who can assist you in putting your property on the market, if you wish to use their service.
To contact to us, please send an email to firstname.lastname@example.org
About Raimon Land Public Company Limited
SET-listed Raimon Land Public Company Limited (RML) is an award-winning real estate firm specializing in the development of high quality super-luxurious residential and resort properties with unique architectural concepts and interior design. Since 2004, the company has completed 20 outstanding residential properties in Thailand, including the iconic 185 Rajadamri, The River, The Lofts Yennakart, The Lofts Ekkamai, The Lofts Asoke, The Lofts Silom, and Mews Yen Akat, in Bangkok as well as The Heights Phuket, Northshore, Northpoint and Zire Wongamat, in Pattaya.
TERMS AND CONDITIONS
@Copyright 2021 Raimon Land. All information provided herein is correct at the time of print and is provided as a general guide only. Raimon Land will not be liable for any loss or damage nor will it take responsibility for any decision made resulting from the use of information provided in this guide which later proves to be incorrect.