Thai condo sale to foreigner

[Puffadder]

My Thai wife wants to sell a condo and therefore it is included in 51% Thai quota.

We have been informed the following:

1. The condo can be sold to a foreigner if total number of condos in complex is less than 49% foreign owned.

2. A letter confirming the status is issued by condo management.

If anyone has any experience with this issue any information would be appreciated.

Regards

PA

[Peterw42]

Thats my understanding of it, if the 49% quota is not full, then it can be sold foreign ownership. You would take a letter from the condo management to the land office on the day of transfer. 

I have looked at condos in some complexes and the real estate/condo manager have said, any condo in the complex can be purchased in foreign name , as the allocation is not full.

[Puffadder]

Thank you for the response that is good news

[1337markus]

Such an important event why would you not consult a lawyer than listen to gossip?

[KittenKong]

36 minutes ago, 1337markus said:

Such an important event why would you not consult a lawyer than listen to gossip?

Several reasons. The main ones being that the lawyer will have no idea, will charge a lot and will probably try to rip you off.

[1337markus]

Can you prove that statement KittenKong?

[KittenKong]

6 hours ago, Peterw42 said:

Thats my understanding of it, if the 49% quota is not full, then it can be sold foreign ownership. You would take a letter from the condo management to the land office on the day of transfer. 

I have looked at condos in some complexes and the real estate/condo manager have said, any condo in the complex can be purchased in foreign name , as the allocation is not full.

 

This is entirely correct. The JPM (Juristic Person Manager) is required by law to know the farang/Thai ratio in the building and should have no trouble informing any potential buyer/vendor in advance as to whether or not purchase by a farang will be acceptable.

[KittenKong]

2 minutes ago, 1337markus said:

Can you prove that statement KittenKong?

 

Prove it? It stands for itself. The JPM knows what the ratio is in a building and the only way that a lawyer can find out is to ask the JPM. I dont see the point of paying a lawyer to ask a question that I could ask myself for free. Any fee paid for such an unnecessary task would be too high, and when it comes to money and property I'm inclined by default to distrust most people of all nationalities here anyway, including lawyers.

 

YMMV

[Mysterion]

I heard there is a fee/tax to convert a thai held condo into a foreigner eligible unit. 

 

Anyone aware of this?

 

 

[KittenKong]

3 hours ago, Mysterion said:

I heard there is a fee/tax to convert a thai held condo into a foreigner eligible unit. 

 

Anyone aware of this?

 

There certainly is not. However any change of name equates to a sale and so the normal sale and transfer taxes would apply.

[trogers]

1 hour ago, KittenKong said:

 

There certainly is not. However any change of name equates to a sale and so the normal sale and transfer taxes would apply.

 

Change of names by gift or inheritance among relations is liable for transfer tax only.

[KittenKong]

^^^ I didnt want to confuse the OP as this (apparently) does not apply in his particular situation.

[Peterw42]

12 hours ago, Mysterion said:

I heard there is a fee/tax to convert a thai held condo into a foreigner eligible unit. 

 

Anyone aware of this?

 

 

 

What KittenKong says is correct, however I have come across the situation were the developer still owns a lot of the condos and will charge extra to buy a condo in foreign name. they own 20 Thai title condos and 20 foreign title condos and are charging to change the allocation within the condos they own.  

[trogers]

There can be no foreign or Thai owned allocation on unsold units by the developer when the foreign quota as registered with the Land Office is way below the 49%.

 

Any unsold unit can be picked and chosen freely by a foreign buyer. In this case, the developer is just profiteering off the foreign buyer.

[KittenKong]

3 hours ago, Peterw42 said:

 

What KittenKong says is correct, however I have come across the situation were the developer still owns a lot of the condos and will charge extra to buy a condo in foreign name. they own 20 Thai title condos and 20 foreign title condos and are charging to change the allocation within the condos they own.  

 

In tourist areas like Pattaya there is often a small premium on the asking price of the farang 49% in buildings which are popular with farangs. However this is entirely due to supply and demand and has nothing to do with taxes or fees. It applies to both off-plan sales and re-sales, though it is more obvious on new builds where there will often be a written price list showing the two prices for the same units. There is certainly such a difference in my older building.

 

This could also be seen as a discount on Thai (or company) name units.

 

Buildings that are more popular with Thai buyers generally dont have any sort of premium on farang sales, and there are several such buildings, old and new, in Pattaya/Jomtien. It isnt just the cheapest buildings either.

 

Some developers of new builds do "assign" the best/most expensive units into their own internal farang quota (with a view to maximising the farang premium), but this has no meaning in law and in fact any unit can be bought by anyone at any price, just as long as the global ratio does not exceed 49/51. It is important to negotiate very hard here and not to pay much attention to asking prices and sales pitches.

[onthemoon]

KittenKong is 100% correct. I bought a condo from a Thai pre-owner. JPM issued the letter. No need for a lawyer.

[Puffadder]

19 hours ago, 1337markus said:

Such an important event why would you not consult a lawyer than listen to gossip?

Just asking for some info. No money has changed hands

[Puffadder]

We have contacted the Condo management and the foreign quota is at 49% but we could sell to a company.

[onthemoon]

I've heard that before, and the management even said they'd help set up a company. It was the reason for me not to buy the condo.

[Puffadder]

Thank you all for the responses, I now have the info requested.

The moderator can close the thread.