Re-selling Your Condo
Know the basic terms and agreements and other legalities in re-selling your condo.
Different options on how to sell your condo unit in Thailand
Advertise the property
In Thailand, a property may be sold without the help of a real estate agent. If an agent is appointed, the seller should maintain the right to sell the property themselves rather than entering into a contract and having to pay an agent commission. Properties can also be marketed on the internet, in newspapers, social media or advertising in front of your homes with a for sale posted.
Using a real estate agent or broker
A reliable agent can assist you in locating a buyer, locally or globally. Agents have more business access and are willing to review prospective customers thus, saving you time in dealing with casual inquiries. They can also help with negotiations, provide legal advice and suggestions on the contract and get the best possible price for the estate. However, all agents in Thailand usually charge up to 3-5% commission of the purchasing price as a fee for this service.
Key points:
- You have the option of whether advertise your condo or get the help of a real estate agent.
- Revise the selling price of your property.
- Know the taxes and payment terms of property transfers.
Guidelines for setting the right selling price
The selling price of your property should be the most important aspect to keep in mind. You may ask around or do your own research to decide how much your property should be sold for based on recent market prices in your location.
However, getting advice from local appraisal companies will also help you figure out the selling price of your condo unit, or using an agent can be a very simple way to figure out the selling. Make sure you get the right minimum price for the property because you will need a more up to date and precise price about your real estate values.
How to divide the transfer costs of an existing re-sale condo?
Ownership transfer fees and taxes are split in a private transaction and the amount depends on the seller and buyer’s agreement. In a private transaction, there is no set rule or legal requirement for how the seller and buyer will split the costs. A buyer of a resale condominium should check with the seller in the sale and purchase agreement on who will be responsible for the transfer charge and all taxes, as well as what percentage will be paid.
In a private sale in Thailand, the taxes and fees associated with the transfer of a condominium are divided as follows:
- Transfer fees: rate= 2% (the buyer’s duty or shared)
- Specific Business Tax (SBT): rate= 3.3 % (the seller’s duty)
- Stamp duty: rate= 0.5% (the seller’s duty)
- Withholding tax (income): rate= 1% or progressive rate** (the seller’ duty)
Note: If a particular business tax is applicable, stamp duty is not required to be charged.
The transfer fee is 2% and is often measured over the condo’s appraised value as determined by the government.
Personal income withholding tax (retention tax) is calculated using the government appraised value and is calculated at a progressive rate based on the number of years the unit has been owned.
Know the right guidelines, legal terms and agreements when selling your condo.
What pre-contractual considerations must I keep in mind?
Both parties have complete flexibility in negotiating their deals as long as they do not violate Thai law or public morals. The Civil and Commercial Code of Thailand governs contract law rules, which are primarily based on continental European civil law concepts. You may choose a jurisdiction to control your contractual responsibilities which is helpful if you or your buyer are more familiar with certain specific sets of laws.
Before selling, perform a thorough inspection of the property for any flaws or liabilities and if any exist, notify the buyer.
A full and open declaration of all aspects of your property in the sales and purchase agreement.
There is no legal requirement in Thailand for liens or debts to be included in the contract, but it goes a long way toward avoiding possible issues with your buyer, particularly if your buyer is accustomed to these terms being common in their home jurisdiction.
Be aware of the various tax obligations when selling your condo unit.
List of documents foreign buyer needs before buying a condominium in Thailand
- Your passport
- Evidence of money transferred from aboard to the value of the condominium Tor Thor 3/FET Form or credit note. The money should be transferred from abroad in foreign currency and exchanged into Thai baht by the recipient bank.
- Marriage or divorce certificate.
- If someone other than yourself is representing you, you must have a power of attorney in Thai scrip notarized by a Notary Public or, if you are abroad, by the Thai consul.
- A certified copy of the authorising party’s and approved party’s identification cards and house registration.
Can a foreign national buy and sell a condo unit in Thailand?
Any foreigner who can legally enter Thailand (no visa-class requirements) can buy and own a condo unit within the condominium’s foreign ownership cap, but each foreigner must individually qualify for ownership under Section 19 of the Condominium Act.
Foreigners can own up to 49% of the unit area of any condominium under Thai law. A condominium unit can be entirely and legally titled in the name of a foreigner as long as the appropriate Thai-owned percentage within a development is maintained. As a foreigner, you can sell your property as long as you follow the right and legal procedure.