Make sure you understand your rights as a foreign condominium owner in Thailand.
Thailand is one of the most popular locations for property investments. For many foreigners living in Thailand, buying a condo in Thailand is an attractive option because there are fewer constraints on nationality under the Condominium Act on ownership.
You might be already familiar with condominium titles in your home country. While the ownership rights are quite similar, some things are different. As a condo owner in Thailand, it is important that you understand your rights. If you want to learn more about your rights as a foreign condo owner in the Land of Smiles, keep reading!
Before purchasing a condo in Thailand, a foreigner must meet certain legal requirements outlined in the Condominium Act B.E 2552 of 1999. Stating that foreigner must have a valid residency permit as a minimum requirement. Foreigners with valid residency permits are not required to pay in foreign currency for their condo. Foreigners who do not have a Thai residency visa, on the other hand, must indicate that the funds they used originated outside of Thailand.
Foreigners who want to buy a condo in Thailand have a second legal option: apply for a stay permit under Thailand’s Investment Promotion Law.
The foreigner’s third legal choice is to bring in the entire amount required for the condo in foreign currency. This is also a condition for foreigners entering the country without a valid visa.
A foreign legal entity with BOI rights in Thailand can also be a foreign condo buyer. The final option is that the person is a foreign legal entity with land right in Thailand, as defined by Thailand’s Land Code.
In order to meet your expectations and lifestyle, there may be other considerations that you as a buyer should consider. Some condominiums have very strict rules that you wouldn’t have purchased the unit have you read the Rules and Regulations first. Though it can be long and difficult, you should still read it. Reading the condominium Rules and Regulations have many benefits that are well worth the effort. When reading the Rules and Regulations, make sure to keep an eye out for the following items:
The next thing you need to know before purchasing a condominium unit is the monthly maintenance fee and sinking fund. While some units in the secondary market will omit this information in their documents, it should be included in all new condominium unit contracts. You can request this from the seller, or you can get it directly from the condominium’s management business. Make sure to double-check the contract to see how much the maintenance fee and sinking fund are.
According to the Condominium Act, the maintenance fees must be proportional to the amount of room you possess. It must be expressed in terms of square meters and the amount must be reported at the local Land Office under the condominium’s Rules and By-laws. Any increase in the property’s price must be approved by a three-fourths majority vote of all joint-owners and the revised Rules and Regulations must be submitted to the Land Office before taking effect.
Keep an eye on all of the condominium association’s rules and regulations to prevent misunderstandings and conflicts.
The purchase and sale agreement is the most important part of a condo purchase in Thailand. Before closing the deal, this contract is used to finalise the interests of both the seller and the buyer. When purchasing a unit in a newly constructed condominium, the developer and buyer must adhere to regulations set forth by condo and consumer protection laws, and the buyer is afforded some protection by the law. Here is a list of condo sale and purchase agreement covers, among other things:
All condominium owners must hold a general meeting at least once a year, according to the Condominium Act.
Foreigners have the same privileges as Thai nationals when renting or leasing a property in Thailand. The Civil and Commercial Code (sections 537 to 571) governs the lease of immovable property such as land, home and condominium for residential purposes with the Thailand Supreme Court providing additional guidance. Foreigners are permitted to lease real estate property in Thailand for up to 30 years under Thai law.
A long-term lease or leasehold agreement is best defined as a prepaid rental contract under Thai law, as specified by the Thailand Civil and Commercial Code. A lease is a personal contract right that is primarily associated with the lessee. It is a personal contract right attached solely to the lessee, as opposed to a real property right (asset) or true leasehold.
There are no legal limits on foreigners selling condominium units in Thailand under Thai law; you just need to locate potential buyers on your own or with the aid of a real estate agent.
The “agreement to buy and sell condominium unit,” which specifies the main terms of the sale, the appropriate deposit, the transfer registration date, and other agreements of the condominium unit. The agreement, which is a government type agreement to be executed in front of the relevant land officer on the transfer registration date. There will be additional taxes fees when selling the condominium, which may vary depending on how long you have owned it and whether you are entitled to Thai income taxes.
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