Condo purchase Thai buying from farang

[DrJack54]

So...buying condo from UK guy.

The buyer is  Thai national (my partner) 

Not sure how to proceed.

The UK owner is back in UK and I'm not sure how this sale proceeds. 

Have done this a few times but the owners previously were Thai. 

Very simple process at the land office. 

 

Just curious as to how this guy gets paid. 

 

Easy for me to transfer funds from Oz to my Thai bank using Wise but ignorant of the process regarding settlement. 

 

Any advice appreciated. 

[wordchild]

should be the same; everything needs to be done via the land office to ensure legal transfer of title and to ensure all the relevant taxes are paid. Why would it be any different just because the seller is none Thai?

 

I am sure the seller has given consideration to how he/she is going to get paid.

 

Would be cautious about agreeing anything outside the normal procedure with the seller; what would be the benefit for you?

 

 

 

Edited March 5, 2023 by wordchild

[scubascuba3]

If the seller is in the UK maybe he needs a Thai lawyer to act on his behalf, go to land office etc

[Pmbkk]

 

Won't you both need a representative at the land dept?

 

The taxes need to be paid ( they are being stricter on this, so at to match correct values - harder to say it's only worth x. and pay little tax). We bought our first place off an American, I didn't see any difference to when we bought another off a Thai couple.

 

We sold a place last month(BKK) - we had the purchaser give us four different cashier cheques as I didn't want such a large amount in one bank and it spread across a number.

The Land taxes we paid our half ( depending on what you've agreed with the seller) in cash to the land dept.

 

Make sure you get receipts for all taxes etc

 

 

I've often thought if I was going to mug/rob someone, the land dept would be best the place - many people walking around with millions in brown envelopes :-)

[BobBKK]

Don't do it? put it in your name?  if not let a Thai buy from a Thai - the farang quota is worth up to 30% more on the price. Why would a Thai buy from a farang - wierd.

[wordchild]

19 minutes ago, BobBKK said:

Don't do it? put it in your name?  if not let a Thai buy from a Thai - the farang quota is worth up to 30% more on the price. Why would a Thai buy from a farang - wierd.

Really depends on the situation for that particular condo. eg in Phuket many condos are (or used to be!)  at or close to the max for the foreign ownership ratio, so , yes,  a condo sold by a foreign owner in such a situation may attract a premium.

For most/all  condos in BKK the foreign ratio is nowhere near the maximum (49%) and if anything (from my experience )  foreign ownership has declined in recent years. So there is (usually) no premium for sales from the foreign allocation.

In my own condo, which is/was popular with foreign renters and owners , the ratio has fallen from c29% to c22% over the last several years

Edited March 5, 2023 by wordchild

[DrJack54]

39 minutes ago, Pmbkk said:

Won't you both need a representative at the land dept?

Thanks for reply.

I most likely would not have even started thread if the owner was in Thailand.

Yes he could use a Thai lawyer with power of attorney etc.

 

He may need to travel to Thailand. 

 

[DrJack54]

35 minutes ago, BobBKK said:

Don't do it? put it in your name?  if not let a Thai buy from a Thai - the farang quota is worth up to 30% more on the price. Why would a Thai buy from a farang - wierd.

I have placed many assets into my long term Thai partner.

3+ condos for LONG term relationship.

I can afford it. 

Thanks for advice. 

[DrJack54]

1 hour ago, scubascuba3 said:

If the seller is in the UK maybe he needs a Thai lawyer to act on his behalf, go to land office etc

That's my thinking.

 

[newnative]

12 hours ago, BobBKK said:

Don't do it? put it in your name?  if not let a Thai buy from a Thai - the farang quota is worth up to 30% more on the price. Why would a Thai buy from a farang - wierd.

Not weird.  My partner and I have sold 3 foreign quota condos to Thais.  'Why would a Thai buy from a farang'?  The same reason anybody else would--they want that particular condo.

[newnative]

13 hours ago, scubascuba3 said:

If the seller is in the UK maybe he needs a Thai lawyer to act on his behalf, go to land office etc

Yes, with a power of attorney (POA) from the seller.

[BobBKK]

33 minutes ago, newnative said:

Not weird.  My partner and I have sold 3 foreign quota condos to Thais.  'Why would a Thai buy from a farang'?  The same reason anybody else would--they want that particular condo.

Fair enough, of course, but much of the value is in the foreign quota element was my point. I have been buying and selling condos for 15 years (22 up to now) and I have sold one to a Thai but that is extremely rare as they can buy in the same building at up to 30% less because farangs cannot buy them. Anyway good luck.

[LukKrueng]

15 hours ago, BobBKK said:

Don't do it? put it in your name?  if not let a Thai buy from a Thai - the farang quota is worth up to 30% more on the price. Why would a Thai buy from a farang - wierd.

Misconception. There's no foreign quota. At any time a foreigner wants to buy a condo unit (doesn't matter who the seller is) the condo office has to check the ratio of foreign ownership and issue an official letter to the land office of the ratio at the time of the letter issuance. There can be times that foreign ownership is more than 49% - for example if during a short time period few foreigners are in the process of buying units at the same complex but none of the sales has gone through yet, the condo office will still issue the letter with the same ratio. By the time all sales go through there might be a situation that more than 49% is owned by non Thais. The next foreigner that will try to buy a unit from a foreigner won't be able to do so as the current ratio won't allow it. So getting a higher price for a unit really depends on many factors.

[newnative]

4 hours ago, BobBKK said:

Fair enough, of course, but much of the value is in the foreign quota element was my point. I have been buying and selling condos for 15 years (22 up to now) and I have sold one to a Thai but that is extremely rare as they can buy in the same building at up to 30% less because farangs cannot buy them. Anyway good luck.

     Yes, I agree, foreign quota can be valuable in condo projects popular with expats, in places like Pattaya, with large numbers of expats.   As others have pointed out, less so in other places and in projects with lots of foreign quota still available.   It remains true what I said; Thais bought 3 of our foreign quota condos, and also a house, because they wanted those particular properties.  Good luck to you, too.

[soi3eddie]

20 hours ago, scubascuba3 said:

If the seller is in the UK maybe he needs a Thai lawyer to act on his behalf, go to land office etc

Most lawyer's should be able to do a "Power of Attorney" remotely for seller or buyer. Did that twice for Bangkok condo 2009/2017. Very easy process although the signed POA document will likely be needed by DHL/FEDEX or similar.

 

[DrJack54]

OP here....

This is just general info.

So there is no agent. 

In this complex there are several condo buildings. 

Each one has the office chick.

 

At various times there are units listed for sale with agents and some where the owner has made the office aware that they wish to sell.

 

In this case the owner has spoken with the office manager and conveyed his intention to sell.

The place has been empty since covid.

Anyway on Wednesday we do the contract and pay deposit.

It's prepared by office lady and (as I understand it) is electronically signed by UK owner.

The deposit is held by the condo complex.

 

As per my previous experiences the settlement is then within 30 days time..

 

I'm guessing that the owner needs to be in Thailand for the trip to land office on settlement. 

 

At this stage I'm guessing that I will have bank cheques drawn up and he will then deposit funds into his Thai bank account.

Subsequently transfer funds to UK using Dee money or whatever.

That's his business.

 

Aside note: for those never having purchased real estate in Thailand it's certainly surprisingly simple compared to what I'm used to in Oz. 

The Land office guy almost acts for both sides checking mortgage, title etc etc.

 

Have purchased couple of joints already however that was from Thai owners.

This owner being from (and currently in) UK , just interested in how this works. 

[BobBKK]

On 3/5/2023 at 6:55 PM, wordchild said:

Really depends on the situation for that particular condo. eg in Phuket many condos are (or used to be!)  at or close to the max for the foreign ownership ratio, so , yes,  a condo sold by a foreign owner in such a situation may attract a premium.

For most/all  condos in BKK the foreign ratio is nowhere near the maximum (49%) and if anything (from my experience )  foreign ownership has declined in recent years. So there is (usually) no premium for sales from the foreign allocation.

In my own condo, which is/was popular with foreign renters and owners , the ratio has fallen from c29% to c22% over the last several years

I've had the opposite problem in Chiang Mai where foreign quotas are often full in the better condos. I agree if the 49% has not been reached then it's not an issue - good luck.

[DrJack54]

Update: 

Things progressing quickly.

 

The Owner is flying from UK Saturday. 

Apparently we meet Monday at Condo office. The office manager is doing the contract etc (she has done so previously) 

 

Hand over deposit and sign contract and all go to Land Office.

 

Fortunately there is no mortgage.

Will hand over the balance in cash to the owner and let land office sort out the transfers (we split 50/50) and check title etc. 

 

Well that's the plan. 

[bang saen guy]

Good luck. Sounds too easy

[DrJack54]

All done! 

So the UK owner flew into Thailand Saturday.

We met this morning at condo office.

The condo office chick was the agent.

Quick drive to land office. 

Made it easy that the owner had no mortgage.

The Land office worker checked over the title etc .

All done very smoothly.

My forth time however this is first purchase from farang owner.

 

You certainly don't need a lawyer imo. 

So simple compared to my joint Oz.