Buying A Condo - Complications

[ingo67]

I am in the early stages of buying a condo (in foreign name), the complcations being that the current owner is not in Thailand, in fact he hasn't been here for years.

The seller did suggest signing the transfer ownership documents in Europe, but I very much doubt this is possible!

I understand that a seller can appoint a power of attorney to carry out the transfer (is this correct ?), so that should sort that problem out.

The next one is that the seller does not have a thai bank account to accept the sale proceeds; what if any, are the solutions to this problem.

Thanks for any advice.

[Delight]

This is not a very good solution but it will probably work. Others may offer better solutions

The seller visits Thailand -sets up a company and transfers the condo to that company. Maybe this can be done without a visit.

He then transfers his shares to you,such that you control the company and the condo. Again maybe can be done outside Thailand

You in turn transfer currency to his domestic bank account in his local currency

Obviously the condo has lost value as a consequence of this activity -this will be reflected in the purchase price.

[USNret]

Can't he hire an attorney (Sunbelt??) to act as his agent? They can assume power of attorney, handle the cash, etc.

[Delight]

Can't he hire an attorney (Sunbelt??) to act as his agent? They can assume power of attorney, handle the cash, etc.

I think that you are correct

Attachment explains more

POWER OF ATTORNEY.pdf

[jack1964]

I think if the seller hasnt been in Thailand for a long period of time, you may have problems, as he would need an entry visa some time in the previous 12 months from what I understand before he can use power of attorney? Check it out, but I think that he needs to have been in the country at some point in the last 12 months, and with him not being here, no bank accounts, land offices etc, this may be a painful journey for you.

[PattayaPhom]

Who showed you the condo, He can give POA to them, needs stamping in the country he stays. Ley him worry about how he will get the money

[belg]

with so many condo's for sale, why you want to break your head on this one ?

[Suradit69]

with so many condo's for sale, why you want to break your head on this one ?

I was thinking the same thing. It seems to be inviting problems. If it's because this condo is a real bargain, that would raise my level of concern.

How certain are you that the seller has free & clear ownership of the condo and that that he/she has no other legal issues pending?

I hope the transaction goes smoothly, but I would be worried about problems later unless you have a lawyer checking on this whole deal.

[Pando]

I have bought and sold condos outside of Thailand.

Your estate agent can draft the sale and purchase agreement, both buyer and seller sign copies and send

by mail to the agent. Faxes or emails are not acceptable.

Then your lawyer (to whom you need to give Power of Attorney) will contact the sellers lawyer to arrange the transfer of the unit.

You as buyer will have the foreign funds form from the bank, this goes to your lawyer

It quite simple really if you get it organised.

[lorbhaim]

with so many condo's for sale, why you want to break your head on this one ?

This guy is right.

If it is a too good deal and not strait forward - take extra care.

[lwilk]

The advice posted above is lethal !

Dont put it in a company name - that is plain illegal and at some point in time all these companies will be investigated and fall fould. Simply put it in your name ONLY. If you can not do that then go find another condo !

DONT DONT EVER give money to lawyer here - You go to Land registry on the day of completion and YOU give the money ( bankers draft ) to the owner once you are convinced the officials at Land Registry are transferring it into your name. I for sure know of stories of clients funds being stolen by "Lawyers" !

It sounds to me like your story might indicate a scam be very very careful

[Plastic Brontosaurus]

Would double check everything in a case like this. Is the purported owner really the owner? Why is he never in Thailand? The process of buying a condo in a foreign name in LOS is complicated enough as it is. Because of this situation, and as many Thais don't like buying used properties (presence of ghosts etc.) would definitely push for a huge discount on the price of what similar condos sell for (like 25-50% off). Because you may still be running unknown risks (even things such as wrong paperwork which might come to light later on etc.). Good luck.

[Rowdy100]

I can sell you my condo for 3.8 million baht....!! No worries... hassle free.... 2 yrs old, 2 br, 2 bth, 5 minutes walk from Phraknaong BTS, 65 sqm....brad new, fully furnished...

[wirat69]

My experience of transacting land from offshore.... I gave POA in required Land Office format, had it Notarised offshore and also had it presented to Thai Embassy for some consular stamp and then sent it to my (private) lawyer in BKK. He travelled to Samut Prakarn office for the "transaction paperwork day" where both vendor and purchaser are at Land Office together.

The actual cash settlement is not Land Office worry... vendor signs to say he has received. Land Office main concern is to ensure the vendor has paid tax, if any, and produces the receipt. Therefore the vendor may be happy with a bank transfer on morning of settlement, once papers are lodged or as others have suggested give the cashiers cheque to the vendors Attorney and let them sort it out]

I had no problems in transactions ( more than one) done in this way. Only slight hassle is the couple of hours involved at the Land Office [because I would not put 500 baht in amongst the papers handed to the Registrar!]

[mushroomdave]

I have learned one thing in this country.........before delving into financial dealings............GET A LAWYER !!!!!!

[how241]

Can't he hire an attorney (Sunbelt??) to act as his agent? They can assume power of attorney, handle the cash, etc.

+1

[fish fingers]

I had an english owner email me after I replied to an ad for a condo in Chiang Mai, except all his emails read in thai english and insisting that it was going to sell quickly and please put a deposit.. after 2months 'he's' still emailing me lol

The advice of Iwilk is all you need!

[JomtienEats]

>The seller did suggest signing the transfer ownership documents in Europe, but I very much doubt this is possible!

Yes, not possible.

>I understand that a seller can appoint a power of attorney to carry out the transfer (is this correct ?), so that should sort that problem out.

That's correct.

>The next one is that the seller does not have a thai bank account to accept the sale proceeds; what if any, are the solutions to this problem.

He might be able to use the same power of attorney to open a bank account.

I was in a similar situation with a seller - he decided that it was simpler in the end to visit for a few days to conclude the deal.

My advice -

Don't put down a deposit or sign an agreement with anyone (unless there is a valid POA). You might be legally bound by it, but he sure won't. If you do put down a deposit, his problems suddenly become your problems, and any difficulties that arise are resolved in his favour.

Insist on paying with a crossed cashiers check.

Make sure to get a lawyer. Usually I'm wary of engaging 'professionals' . . . but I was very glad I did.

Edited April 13, 2013 by JomtienEats

[jpduggan]

What you need is the reliable advice of a good lawyer and not any of the armchair experts who write on this forum. I suggest you make an appointment with one of the farang lawers in Magna Carta law firm (who I used and found to be very good )or one of the others. You want to be sure everything is above board on these deals.

Jim

[BrianCR]

>The seller did suggest signing the transfer ownership documents in Europe, but I very much doubt this is possible!

Yes, not possible.

>I understand that a seller can appoint a power of attorney to carry out the transfer (is this correct ?), so that should sort that problem out.

That's correct.

>The next one is that the seller does not have a thai bank account to accept the sale proceeds; what if any, are the solutions to this problem.

He might be able to use the same power of attorney to open a bank account.

I was in a similar situation with a seller - he decided that it was simpler in the end to visit for a few days to conclude the deal.

My advice -

Don't put down a deposit or sign an agreement with anyone (unless there is a valid POA). You might be legally bound by it, but he sure won't. If you do put down a deposit, his problems suddenly become your problems, and any difficulties that arise are resolved in his favour.

Insist on paying with a crossed cashiers check.

Make sure to get a lawyer. Usually I'm wary of engaging 'professionals' . . . but I was very glad I did.

Best answer yet!

[BrianCR]

Can't he hire an attorney (Sunbelt??) to act as his agent? They can assume power of attorney, handle the cash, etc.

+1

Sunbelt? As I've been known to say before, my dog could handle it better!

[dighambara]

It seems you are receiving both good and bad advice...LOL

BLUE BOOK - have you seen it or a reasonable copy and verified the name on the document..??

I have purchased condos in Thailand without a lawyer, but it was a simple transaction, with a realtor in the middle.

[MichaelSong]

You know in advance there will be complications , so just walk away from the deal. If it is too good to be true then it is. And as for lawyers, in Europe they rob you in daylight, so cant even imagine how they operate in Thailand.

[kinmaew]

Walk away - this stinks, you should not have to worry about all this stuff when buying a place, you could lose all your money. Find a more transparent opportunity.

[jcnbkk]

I can sell you my condo for 3.8 million baht....!! No worries... hassle free.... 2 yrs old, 2 br, 2 bth, 5 minutes walk from Phraknaong BTS, 65 sqm....brad new, fully furnished...

What condo bldg?

[movsrus]

>The seller did suggest signing the transfer ownership documents in Europe, but I very much doubt this is possible!

Yes, not possible.

>I understand that a seller can appoint a power of attorney to carry out the transfer (is this correct ?), so that should sort that problem out.

That's correct.

>The next one is that the seller does not have a thai bank account to accept the sale proceeds; what if any, are the solutions to this problem.

He might be able to use the same power of attorney to open a bank account.

I was in a similar situation with a seller - he decided that it was simpler in the end to visit for a few days to conclude the deal.

My advice -

Don't put down a deposit or sign an agreement with anyone (unless there is a valid POA). You might be legally bound by it, but he sure won't. If you do put down a deposit, his problems suddenly become your problems, and any difficulties that arise are resolved in his favour.

Insist on paying with a crossed cashiers check.

Make sure to get a lawyer. Usually I'm wary of engaging 'professionals' . . . but I was very glad I did.

What is a crossed cashiers check? Have not heard that term before.