Transfer fees Chiang Mai Land Office...

[les1]

Can anyone tell me the current rate for Condo transfer fees in Chiang Mai & is that all that is to be paid on transferring a foreign owned Condo?

Thank you,

[naboo]

Not a flat rate. There is a tax on the sale price (or land office valuation, depending on which is higher) and a tax on the profit the seller is making depending on how long they have owned the property.

We negotiated for the seller to pay these - came to about 80,000B (the sellers were quite upset). We still had to pay to register the mortgage on top (don't remember the cost, same day had to shell out for building insurance for the duration of the mortgage, all in about 15,000B).

[Thighlander]

the value at the land office is almost always lower, and that is what you state as the selling price........some like to do things the hard way....

[naboo]

the value at the land office is almost always lower, and that is what you state as the selling price........some like to do things the hard way....

There was a change in valuations in 2012, when my wife bought last year, the land office valued 20% higher than the price she paid.

[Thighlander]

the value at the land office is almost always lower, and that is what you state as the selling price........some like to do things the hard way....

There was a change in valuations in 2012, when my wife bought last year, the land office valued 20% higher than the price she paid.

you stated depends on which is higher. It would have been more accurate to say they use the lower of the two, unless they think you are lying....then it's tea money time. Can be tricky on those 30 year leases too, but the stakes are higher for the transfer. Land prices go up a lot, when they do go up.....so I'm wondering if your wife's deal was more land based.......I know when my attorney bought at BWT, Amphur said the 60 wah was 300K, but that was upped to 600K a few years later, and that is probably where it stands today.....and 600K is pretty accurate, tough to get in there for less.

[beau thai]

Maybe I am wrong, but I have the impression that if you go to the Land Office with someone to 'help' you who is known there, and understands 'tea money' with their 'friend' at the LO, the tax tends to be less.

Anyone else found that?

[Thighlander]

That's an advantage of using a "good" realtor or attorney. It's a gray area.......seems like technically, they aren't suppose to give you the LO value if you paid more, but it is a common practice, but it's the wrong time for someone to put their foot in their mouth. I never said a word to the government personnel, for the condo purchase, just sat back in the chair and let the realtor do all the talking. Once we got outside, she gave me the Chinot; I gave her the cashier's check(s).

Another reason to make the seller cover all LO fees. And of course nothing is free, but you won't have any surprises, and it will be up to them to grease the proper wheels, in the proper manner. The good agents/attorneys know the nuances of the different Amphurs, also. I think when I sell, I will use a good agent; pay them 3%, but make it clear, it will be up to them to pull off the low price at the LO. We sold in 2008, and there was a temporary moratorium on the transfer taxes....it was like hitting the lottery. The buyer's nominee stated that a similar deal (but brand new) had cost her 50K more about 6 months earlier. I've sold seven homes in America, and one piece of land...for all intents and purposes; it is no more painful over here, especially when the standard commission is 6% in the US.

The key is to get a good deal going in, so you can give a good deal when you sell. Well priced properties sell efficiently here; others tend to sit; sometimes for years. Realtors as a profession can get a pretty bad rap. Most of my experiences with them have been completely pleasant and professional....just a little bit of due diligence will go a long way.

Edited July 6, 2014 by Thighlander

[les1]

Not a flat rate. There is a tax on the sale price (or land office valuation, depending on which is higher) and a tax on the profit the seller is making depending on how long they have owned the property.

We negotiated for the seller to pay these - came to about 80,000B (the sellers were quite upset). We still had to pay to register the mortgage on top (don't remember the cost, same day had to shell out for building insurance for the duration of the mortgage, all in about 15,000B).

I am buying a Condo in Chiang Mai the deal is 50-50 on the transfer fees. Are you saying that the transfer fees include any capital gains on the sale of the property by the seller? Which would mean that the buyer is contributing to the sellers capital gain?

[naboo]

Yes, and if the current owner has been there less than 5 years, it will be high.

See the link for an example. As I said, we pushed for the seller to pay all.

http://www.samuiforsale.com/real-estate/transfer-fees-and-taxes-for-a-condo-in-thailand.html

[skldd]

Transfer fee is 2% of selling price.

It can be 50-50 share or paid all by the owner.

Besides, there is specified business tax for 3.3% if the owner sell his/her unit within 5 years.

VAT is there.

[les1]

Yes, and if the current owner has been there less than 5 years, it will be high.

See the link for an example. As I said, we pushed for the seller to pay all.

http://www.samuiforsale.com/real-estate/transfer-fees-and-taxes-for-a-condo-in-thailand.html

Thanks for that information it's very interesting. I reckon a lot of sales are done 50-50 & the buyer is being fitted up because they do not know. I paid 24,000 baht as my 50% on a 1.7 million Studio...2% is 34,000baht so I paid part of the sellers fee's.Along with that I know it was declared for less...I guess you live & learn especially overseas. Thanks again,,

[Thighlander]

http://www.thailandlawonline.com/article-older-archive/immovable-property-conveyancing-tax

says here you would not be subject to specific business tax if it was used as your primary residence and your name appeared in the register for not less than one year.......By that, do they mean blue/yellow book? If so, that might be a good reason to get them.

[Mapguy]

Excellent thread! And relative to "house" purchase and sales, too, it appears.

The fundamental law and procedures are really quite clear. More information about their application in Chiang Mai would be interesting to hear about. I have yet to meet any "real estate agent" (joke!!) who doesn't "know someone" at the office.

Edited July 9, 2014 by Mapguy