Step by step guide to buying a used Condo.

[Som wat]

As I remember it a few things are needed for a foreigner to buy a condo.

Money has to be from overseas.

You have to get a doc confirming that the building is not more than 49% foreigner owned.

That there are no outstanding debts to be paid.

So what are the steps taken between you having an offer accepted by the agent and you owning and moving into the condo?

1) Have an offer accepted. Sign contracts.

2) Get docs stating that the building is less than 49% foreign owned.

3) Get docs stating that there are no outstanding debts owed on the unit.

4) Have the money transfered in from overseas.

5) ?

Or completly different and incorrect?

First time buyer here.

Thanks.

[Senechal]

It's not just that the building is 49% foreign owned, it's that your intended unit is for foreign ownership.

[Som wat]

Thanks, anything else.

[PattayaPhom]

You require an FET from your bank stating funds are from abroad. The current owner needs to provide debt free letter from JP office along with foreign quoto. Land office will not transfer without any of these. JP letter needs to be issued no earlier than 30 days prior to transfer and only states there are no outstanding utility or maintenance charges. If any other leins/debts attached you need to address this with the owner.

Edited April 7, 2014 by PattayaPhom

[GinBoy2]

All of the above is correct, but if you're a first time buyer use a reputable agent, preferably an international company. User dosen't pay any fees, the seller pays the agent. Thailand is littered with horror stories (especially in Jomtienski and Pattayaski) of farangs being ripped off with deposits going missing. You pay a 10% deposit when you sign the contract and the rest on the day of title transfer

On the positive side I have purchased two condo's in Bangkok without any problems. The agent will 'facilitate' the work with the land office so it's quick. Just one point; The original FET after you sign it at the local bank branch is returned to HQ, make sure you ask them to give you a certified copy to take to the Land Office on the day of transfer

Edited April 7, 2014 by GinBoy2

[PattayaPhom]

All of the above is correct, but if you're a first time buyer use a reputable agent, preferably an international company. User dosen't pay any fees, the seller pays the agent. Thailand is littered with horror stories (especially in Jomtienski and Pattayaski) of farangs being ripped off with deposits going missing. You pay a 10% deposit when you sign the contract and the rest on the day of title transfer

On the positive side I have purchased two condo's in Bangkok without any problems. The agent will 'facilitate' the work with the land office so it's quick. Just one point; The original FET after you sign it at the local bank branch is returned to HQ, make sure you ask them to give you a certified copy to take to the Land Office on the day of transfer

Perfect customer in the know.....easy peasy lemon squezy and no wrong info from barflies.

[Som wat]

Thanks.

It would also be a condo in Chiang Mai, so well clear of Pattaya/Phuket agents. But of course need to be wary as well.

Thanks for the info GB2.

[KittenKong]

All of the above is correct, but if you're a first time buyer use a reputable agent, preferably an international company. User dosen't pay any fees, the seller pays the agent.

The buyer pays for everything, one way or another. Anyone who says otherwise is in fantasy land.

In Thailand you are more likely to be ripped off by an agent than you are by a vendor, as the vendor will be keen to shift his unwanted property.

[KittenKong]

It's not just that the building is 49% foreign owned, it's that your intended unit is for foreign ownership.

Not so.

A farang can buy a Thai name unit, as long as this doesn't put the building farang quota over 49%. Many condo buildings in Thailand are nowhere near the 49% farang ownership, especially outside the areas that are very popular with tourists.

[KittenKong]

So what are the steps taken between you having an offer accepted by the agent and you owning and moving into the condo?

1) Have an offer accepted. Sign contracts.

2) Get docs stating that the building is less than 49% foreign owned.

3) Get docs stating that there are no outstanding debts owed on the unit.

4) Have the money transfered in from overseas.

5) ?

You dont actually need a contract, though you can have one if you like. Contracts will mainly be of advantage to the vendor, as they may prevent you from changing your mind. You wont often hear of vendors changing their minds.

Nor do you need to pay any sort of deposit, especially the absurdly high 10% often requested. The only thing that matters is the transfer that the land office does.

The vendor (or his agent) will obtain the necessary paperwork from the building.

Your money can already be here. It doesnt have to be freshly transferred. But you do need a certificate showing that it came from abroad, as mentioned.

5) Negotiate hard. Then negotiate harder. Then negotiate some more. There are untold thousands of condos for sale in Thailand. Ask yourself why.

6) Watch out for scams relating to the taxes/fees. As a buyer you should reasonably pay some of the transfer fee, but none of the taxes. They are the vendor's problem and are none of your business.

7) Only pay using a crossed cashier's cheque in the name of the vendor. Obtain a photocopy of his ID for this. If this is not acceptable, just walk away.

Edited April 7, 2014 by KittenKong

[Som wat]

^ What are the average transfer fees and taxes?

Are the transfer fees set or a % of the value or size?

Tax is a % of the value? as declared by?

Thanks.

[GinBoy2]

Its 3% of the condo price. In general the seller will start at a 50/50 split. This is a negotiation point

[Som wat]

Okay thanks. So 30k baht Transfer Fees on a 1m baht condo. % to be paid negotiable with the seller.

What tax is due either to the seller or buyer when a used condo is being purchased?

Edited April 8, 2014 by Som wat

[Som wat]

1) Have an offer accepted, including who's paying what % of the transfer fee (3% of total cost) and taxes (?). Sign contracts, some buyers pay deposit up to around 10%.

2) The current owner needs to provide debt free letter from JP office along with foreign quoto. Issued no earlier than 30 days prior to notice.

3) Have the money transfered in from overseas, get an FET from the bank. The original FET after you sign it at the local bank branch is returned to HQ, make sure you ask them to give you a certified copy to take to the Land Office on the day of transfer.

4) Only pay using a crossed cashier's cheque in the name of the vendor. Obtain a photocopy of his ID for this.

5) Take all to the Land Office, give the cashier cheque, transfer ownership to your name.

6) Move in.

Pretty much about it?

[GinBoy2]

1) Have an offer accepted, including who's paying what % of the transfer fee (3% of total cost) and taxes (?). Sign contracts, some buyers pay deposit up to around 10%.

2) The current owner needs to provide debt free letter from JP office along with foreign quoto. Issued no earlier than 30 days prior to notice.

3) Have the money transfered in from overseas, get an FET from the bank. The original FET after you sign it at the local bank branch is returned to HQ, make sure you ask them to give you a certified copy to take to the Land Office on the day of transfer.

4) Only pay using a crossed cashier's cheque in the name of the vendor. Obtain a photocopy of his ID for this.

5) Take all to the Land Office, give the cashier cheque, transfer ownership to your name.

6) Move in.

Pretty much about it?

On the check itself. If your bank branch isn't in Bangkok they may not issue you with a cashiers check, it'll be a draft check. It's nit picky I know, but as this is Thailand, there's a % charge for a draft

[PattayaPhom]

Okay thanks. So 30k baht Transfer Fees on a 1m baht condo. % to be paid negotiable with the seller.

What tax is due either to the seller or buyer when a used condo is being purchased?

Not quite, most land offices have a set fee per sqm for units in their jurisdiction....regardless of what you sell/buy for taxes/fees will be calculated according to their valuation. Balcony area is set at half cost of internal area. As for the comment above that buyer pays for everything, thats ludicrous, in rebuttle to that you can then say the seller sells for free....

[KittenKong]

As for the comment above that buyer pays for everything, thats ludicrous, in rebuttle to that you can then say the seller sells for free....

Yes, you could say that if you like. I wouldn't.

It would be more accurate to say that the buyer ultimately pays for everything and that the vendor may have some costs to deduct from the price that is paid by the buyer (agent's fees, land office taxes & transfer fees, building debt-free fees, etc.). And the more the vendor can reduce these costs the more of the purchase price he will keep in his pocket.

But either way all the money spent comes out of the buyer's pocket. Unless perhaps the vendor is selling a property in which he has negative equity, which for used farang-name condos seems very unlikely.