How To Buy A Condo?

[vicky]

Hi there!

First of all, I'm sorry if some of my questions seem rather stupid, but I really have very vague idea of the local real estate laws.

I came to BKK from Moscow 3 years ago to do master's at AU. At the moment I'm done with the studies and recently started working as a teacher. That is to say my work permit is still being done. Since I'm not planning to be back home shortly, my family decided to buy a condo here, which would be a good investment and at the same time would be of use while I'm here.

Finding a place to buy wasn't a problem at all; however, I've got heaps of questions and have no idea who to turn to. I'd really appreciate it if you could help me out. Here they are [finally got to the point, sorry ]:

1. Is there a way to transer the money to the seller from my local account rathen than doing it from abroad?

2. What taxes are to be paid when buying a condo, and WHO is paying them, i.e. the present owner or I?

3. Does it make much sense to find an attorney and how much do they usually charge?

Thank you in advance. Cheers! Vicky.

[PattayaParent]

1. Transfer the money in foreign currency to your bank account and then get a cahiers cheque in Baht to give to the seller, you will also neet the FET from the bank for the land office if >$20k, or a 'bai rap rong' if less than.

2. Seller is legally required to pay all taxes but most times the sales contract will split 50/50. So up to you to agree with seller on who pays. Don't know the exact tax rates but they're currently reduced (maybe 0.1% I think?)

3 An attorney with Power of Attorney will save you sitting around the tax office all day to make the transfer. Costs from 6k to 10k Baht per unit. The guy just up from Dolphin Roundabout on North Road is usually most recommended.

[vicky]

1. Transfer the money in foreign currency to your bank account and then get a cahiers cheque in Baht to give to the seller, you will also neet the FET from the bank for the land office if >$20k, or a 'bai rap rong' if less than.

2. Seller is legally required to pay all taxes but most times the sales contract will split 50/50. So up to you to agree with seller on who pays. Don't know the exact tax rates but they're currently reduced (maybe 0.1% I think?)

3 An attorney with Power of Attorney will save you sitting around the tax office all day to make the transfer. Costs from 6k to 10k Baht per unit. The guy just up from Dolphin Roundabout on North Road is usually most recommended.

OOPS... Quoted it accidently and have no idea how to delete it now

Edited September 8, 2008 by vicky

[vicky]

Dear "PatayaParent",

Thanks a lot for your quick and informative response! Very helpful indeed. It's funny how easily one can get lost in the vast of information...

Best wishes! Cheers!

[tangoll]

The fact that you have a work permit (or close to getting one) changes the process by which you can purchase a condo. These things you had better check with a lawyer. For one, with a WP, you as a non-Thai, may not need to provide the Foreign Exchange Transaction Form to show that funds were imported for the purchase. With a WP, you can get a local mortgage to finance your purchase of the condo. With a WP, you can open a checking account at a local bank.

Sunbelt Asia lawyers quoted me a fee of baht 8,000 plus VAT to assist me in doing the Transfer of Ownership at the Land Department Office. This fee does not include any help in drawing up the Sales and Purchase Agreement, or in negotiating a sale and purchase.

It seems you had better engage the services of a good lawyer plus find yourself a real estate agent who is very familiar with doing property purchases by foreigners and in doing the transfers at the Land Dept office.

[PattayaParent]

3 An attorney with Power of Attorney will save you sitting around the tax office all day to make the transfer. Costs from 6k to 10k Baht per unit. The guy just up from Dolphin Roundabout on North Road is usually most recommended.

Sorry, I thought this was Pattaya related hence the directions in Pattaya.

Maybe I've assumed that by AU you mean Asian University which is in Pattaya?

Or was this topic moved from the Pattaya Forum or is it me going crazy?

[Scott123]

.....

It seems you had better engage the services of a good lawyer plus find yourself a real estate agent who is very familiar with doing property purchases by foreigners and in doing the transfers at the Land Dept office.

A real estate agent's job is to find you a property that meets your requirement.

Why bother getting an agent after you already find a property? A lawyer can handle all aspects of the real estate transaction and can be much cheaper than an agent. (I think agent's fee is 5% of the property price.)

Edited September 9, 2008 by Scott123

[vicky]

Thank everyone for the advice! All the information's useful, really.

Have a good weekend!

P.S. AU referred to Assumption University (formerly ABAC), so yes, I'm actually in Bangkok, but thanks anyway

[stgrhe]

Even if you have found a property that you are interested in make sure you do a proper due diligence on the property, its developer (if it is a new project) or the company that manages the property if it is an existing one. For this you need help from a good and independent lawyer and every baht spent on this research is worth it.

Remember also that forigeners may only own up to 49% of the total area of the condo. In many areas this has created a dual market for the condos with one lower price for the condos that only can be owned by the Thais, and a higher price for those that also forigners can own. This means that the resale value of the latter in most cases are higher too.

G.