Procedure To Transfer Name For Condo Purchase

[moondancer]

Hi, my friend is interested to buy a freehold condo from the 1st-hand owner who bought it from a developer. The owner has paid a small downpayment to the developer.

The transfer will happen in two months' time and my friend is now planning to buy the condo from the owner.

Please advise me what is the purchase procedure? Do we show up at the developer's office and effect the change? What's the related expenses - transfer fee 0.01%, Specific Business Tax 0.11% and Transaction Fee 0.01% ?

Can a foreigner and a thai buy a condo together? Would this be considered under foreign or thai quota or 50:50 ?

Many thanks.

[jerrylee]

Hi, my friend is interested to buy a freehold condo from the 1st-hand owner who bought it from a developer. The owner has paid a small downpayment to the developer.

The transfer will happen in two months' time and my friend is now planning to buy the condo from the owner.

Please advise me what is the purchase procedure? Do we show up at the developer's office and effect the change? What's the related expenses - transfer fee 0.01%, Specific Business Tax 0.11% and Transaction Fee 0.01% ?

Can a foreigner and a thai buy a condo together? Would this be considered under foreign or thai quota or 50:50 ?

Many thanks.

Your first hand owner will not have his name on the title, so technically its transferring name from developer to your friend.

You should'nt have to pay any Taxes, and even the transfer fee is normally paid by seller, I suggest that you hire a lawyer to draw up the contact of purchase - these should include copies of title deed, list of fixtures included in sale, schedule of payment, fees payable etc., copies of owners and buyers ID cards, bank clearance for money tranferred to buy condo.

Beware of this joint ownership thing, thats not how quotas based on!

[moondancer]

Thanks, Jerry. I now understand the juristic office should provide a certified declaration of foreign ownership.

[cqr]

Hi, my friend is interested to buy a freehold condo from the 1st-hand owner who bought it from a developer. The owner has paid a small downpayment to the developer.

The transfer will happen in two months' time and my friend is now planning to buy the condo from the owner.

Please advise me what is the purchase procedure? Do we show up at the developer's office and effect the change? What's the related expenses - transfer fee 0.01%, Specific Business Tax 0.11% and Transaction Fee 0.01% ?

Can a foreigner and a thai buy a condo together? Would this be considered under foreign or thai quota or 50:50 ?

Many thanks.

Your first hand owner will not have his name on the title, so technically its transferring name from developer to your friend.

You should'nt have to pay any Taxes, and even the transfer fee is normally paid by seller, I suggest that you hire a lawyer to draw up the contact of purchase - these should include copies of title deed, list of fixtures included in sale, schedule of payment, fees payable etc., copies of owners and buyers ID cards, bank clearance for money tranferred to buy condo.

Beware of this joint ownership thing, thats not how quotas based on!

Most of the time I’m aware of where people are buying 2^nd hand property, the tax and transfer fee is split 50/50, and with new I know that sometimes the buyer shall pay all the transfer tax, plus sinking fund and common area fee (2 years in advance).

For the tax percentage I think whey has raised that again, so try to see if you can get the exact price for tax etc.

Another thing make sure that the developer will accept that the transfer will be to other than the originally buyer, I know of one case where a guy bought by condo paying the down payment and then he later have problems with paying the rest and want to sell, the developer will not let him sell it to 3^rd part before he has paid everything and the title was in his name!!

/Claus

[moondancer]

Thanks, Claus. The owner wants to split the fees/taxes with my friend on 50:50 basis.

The rates for the various taxes are valid until Mar 2010. Will get exact breakdown and receipt before making the payment.

[frenchFARANGbkk]

Hi,

I also wonder if it would be considered under foreign or thai quota or 50:50 ?

And what happens when you buy a condo that is registered with Thai AND farang name but the farang quota of the building is already reached, can you buy this condo only with farang name ?

Thanks.

[samILO]

Hi, my friend is interested to buy a freehold condo from the 1st-hand owner who bought it from a developer. The owner has paid a small downpayment to the developer.

The transfer will happen in two months' time and my friend is now planning to buy the condo from the owner.

Please advise me what is the purchase procedure? Do we show up at the developer's office and effect the change? What's the related expenses - transfer fee 0.01%, Specific Business Tax 0.11% and Transaction Fee 0.01% ?

Can a foreigner and a thai buy a condo together? Would this be considered under foreign or thai quota or 50:50 ?

Many thanks.

Hi Monndancer,

Yes the condo under such purchase in the name of foreign and Thai would be considered foreign owned. I would also ask the seller to pay the taxes himself, registration fees 50 % each (as the Thai law describes) if no other agreement reached on such matter) though currently with all the deduction its anyway much cheaper then its used to be. It all depends on the negotiations. Condo ownership has to be majority owned by THais, means like 50.xx % thai and remainder can be foreigner. Calculated from the total private square meters of a condo project, the Condo Juristic Manager will have such details (so does the land department). Best to transfer the title to your name when you pay money at the land department, same day you do the ownership transaction (you have to trasnfer the money in foreign currency to Thailand with the remark to purchase a condominium - so you can get the foreign exchange form from your bank, which is necessary to transfer a Condo Unit to a foreigners name (again there are some exceptions)

[tangoll]

As I understand the OP's post, first buyer is holding the S+P contract with the developer for this condo still under construction. This first buyer has not transferred the condo unit into the first buyer's name yet (as he's only paid a deposit to the developer, per the post). Basically the first buyer is not selling the condo unit to the friend; he's only assigning the developer's contract to the friend's name, and in this resale, probably having to pay the developing a "name change fee" to assign the S+P contract into the friend's name. Two months later, the friend will then have the condo unit transferred by the developer into the friend's name.

In the first transaction, there are no transfer fees involved; there probably will be a name change fee paid to the developer, and of course, some monies to be paid by the friend to the first buyer for taking over the contract.

In the second transaction, this will be the actual transfer from the developer to the name on the S+P Contract, by then the friend's name, and the transfer fees/tax will be paid according to what's on the S+P contract.

Straightforward and simple. I don't know what the rule regarding joint Thai/farang ownership of a condo unit and how that would be calculated as to the foreign quota for a project. Best to check with the developer and whoever will be the juristic person managing the project.

[moondancer]

Tangoll, you are correct. It's the 1st case - the developer wants B100,000 to effect the name change from the 1st owner to my friend.

Thanks all for the good responses so far.