Real Estate Purchase Agreement

There are three main types of real estate in which you can invest in Thailand as a foreigner: condominiums, houses/villas and apartments.

A condominium is a group of apartments in a building with common areas that are co-owned by the owners of each apartment. Unlike other types of property, the condominium law allows foreigners to purchase this type of apartment in their own name and thus have full ownership of the property for an unlimited period of time. The purchase must be made in a residence with a condominium license offering full ownership. The investor must ensure that foreigners have not already purchased 49% of the living space of the residence.

While the purchase of an apartment allows a foreigner to benefit from the entire property, it is different from the purchase of a house or a villa in Thailand. Indeed, a foreigner cannot buy a land. Investors wishing to buy this type of property will be offered a long-term lease for the land on which the property is located. This alternative solution to full ownership allows for a leasehold, a 30-year lease with the possibility of renewing it twice, for a total of 90 years.

The purchase of an apartment is also possible for foreigners thanks to the long-term lease of 30 to 90 years. However, apartments must be differentiated from condominiums as the buildings do not have a condominium license.

Within the framework of your real estate purchase agreement in Thailand, you must be protected in the event of problem, especially if you are foreigner and do not know the law in Thailand. Thus, it is essential to follow the following procedures to protect you legally and ensure the good progress of your real estate acquisition in Thailand:

You must be accompanied by a legal expert when you buy or sell your apartment. Indeed, the competent Thai lawyer will be able to:

In the real estate purchase agreement, a number of information and clauses must be included. Documents must also be attached. While the contract of sale and purchase must include the contact details of the seller and the buyer, it must also include a certain amount of information relating not to the parties to the contract but to the property sold. In particular, the sales agreement must contain the following information:

The real estate purchase agreement must mention certain elements such as:

Themis Partner provides you with sample contracts for the purchase and sale of real estate suitable for condominiums, apartments, villas, houses and land. Thanks to our documents, you can already obtain your professionally drafted real estate purchase agreement very quickly and at a lower cost. Finally, depending on your situation and that of the chosen property, you can always call on us to contact a competent lawyer.

Buying real estate without the help of a lawyer is a risky operation in Thailand. A lawyer is a professional who will be able to guide you to avoid the pitfalls throughout the process. Discover his role and the criteria to take into account when choosing a lawyer. The lawyer can be brought to check the conformity of your real estate project and the essential documents. The drafting and signing of the promise or compromise of sale requires particular attention. Any conflict following the signing of a preliminary sales agreement can lead to disastrous legal proceedings. It is therefore essential to master the content of the contract to avoid any unpleasant surprises.

The choice of a lawyer should not be based solely on the amount of the fees. Not all professionals have the same competence and an incompetent lawyer can hinder the smooth running of your project. It is essential to know that there are generalist lawyers and specialists. Some focus on specific areas of law, and not all have the same expertise in real estate law. The lawyer you choose should also have a good knowledge of the area and the real estate market. This will allow him or her to provide you with relevant advice during your purchase. He or she must also be able to interact with social organizations and settle any administrative disputes. He will also link your project to state and local regulations. Skills in public law and administrative law are thus essential.

A condominium is a type of property divided into multiple units, each independently owned, surrounded by familiar condominium areas. These residential structures are built like condominiums, but unlike tenant-rented apartments, condominium units are directly owned. The owners of the individual units also collectively own the common areas of the property, such as hallways, walkways, pools, gyms, laundry rooms, etc., as well as common facilities such as water and electricity, and shared facilities such as elevators. Common areas, services and utilities are managed collectively by the owners through a management company. The difference between an apartment complex and a condominium is purely legal.

There is no way to tell the difference between a condominium and an apartment simply by looking at or visiting the building. Technically, a condominium is a collection of individual housing units and common areas, as well as the land on which they are located. Condominiums have conditions, agreements, restrictions and often additional rules that govern how the owners of the individual units must share the space. They are governed primarily by their internal rules and regulations as well as by the Thai Condominium Act. The internal rules and regulations govern how the building is managed, i.e., the units cannot be used as commercial addresses or, for example, have restrictions on pets.

There are two types of residential buildings in Thailand, condominiums registered under the Condominium Act with a condominium license and apartments not registered under the Condominium Act. Only condominiums built under the Condominium Act and registered with the Land Office Department offer full individual ownership with a government-issued title. The Condominium Act specifies the procedure and requirements for a multi-unit condominium and how it disposes of units for sale to be purchased by foreigners under freehold ownership.

For foreigners buying a condominium in Thailand, there are no nationality restrictions: any foreigner who can legally enter Thailand can buy and own a condominium if they meet the ownership requirements:

Foreigners or legal entities who bring foreign currency into the Kingdom of Thailand or who have money in a Thai bank account while the same money must have been regularly transferred from a foreign bank account and in foreign currency to this Thai bank account. Therefore, the purchase price of a condominium must have been transferred to Thailand in foreign currency and converted into Thai baht by an authorized financial institution in Thailand.

The maximum number of purchasable units built for an individual foreigner in a condominium is 49% of the total number of units. This means that you cannot sell more than 49% of the total number of units built to foreigners in a condominium. Thais must own at least 51% of the condominium. When purchasing a condominium, the seller must provide a letter of guarantee issued by the legal entity of the condominium certifying that the condominium unit is part of the 49% ownership share of the condominium. This does not apply to condominiums that are still under construction. In this case, the legal entity of the condominium will be designated at the earliest when the condominium unit is completed to issue the letter of guarantee at a later date.

The real estate purchase agreement details the responsibilities of the buyer and seller. It provides for, among other things, the agreed upon price and payment details, the transfer date, exact details of the condominium, responsibilities for commissions and transfer fees, warranties and due diligence issues. Standard sales contracts must comply with the Condominium Act and consumer protection laws. The transfer of ownership is done through the provincial or local land department agency. A second formal sales contract is signed at the time of transfer, and transfer taxes and duties must be paid.

The transfer of a condominium in Thailand involves a series of taxes and duties.

After the property is registered, the new owner will receive the title to the property. Each unit in the condominium has a deed issued by the Department of Land Office. The deed must contain, among other things, the following information: the address, lot location and area of the condominium unit, the area and floor plan of the condominium showing the width, length, height, ratio of the property to the common areas, the first and last name of the person who owns the unit, the registration index, and the signature of the land office officer.

At the time of purchase, the seller must provide a letter of guarantee issued by the legal entity of the condominium stating that the condominium does not exceed the 49% foreign ownership share and a letter stating that there are no outstanding fees due to the legal entity. Other documents required at the time of transfer are identification cards or passports, a marriage or divorce certificate (if applicable), and a power of attorney if you are not going to the land office in person but wish to delegate someone else on your behalf, such as lawyers or attorneys.

Foreigners are not allowed to purchase freehold land under Thai law, but they can own real estate even if they do not own the land. However, they may have the following options if they wish to obtain the property:

In the case of a foreigner buying a house in Thailand, however, the foreigner may own the house but not the land. In the case where the ownership of a house is transferred separately from the land, the transfer procedure must be in accordance with Thai law by observing:

In Thailand, with the exception of condominiums, buildings are not deeded separately from the land. Thus, the procedure for obtaining ownership of a house on a piece of land is as follows:

When purchasing from a developer, the sale of a home separate from the ground lease is done either by:

If an individual wishes to build a house on land that he or she does not own but is a tenant, the building permit must be issued in the name of the tenant of the land in order for him or her to own the house that will be built on the land.

The sale of a completed or existing building separate from the land requires that both the current owner and the purchaser of the house:

Buying a house in Thailand can be complex, especially if you want to buy it with a Thai company. Themis Partner provides foreign real estate lawyers in Thailand to assist you in the formalities related to the purchase of your house in Thailand.