Foreigners Guide to Selling Property in Thailand
Want to sell your property in Thailand? Here’s what you need to know.
Set the Right Price
The first thing you need to do is to set your asking price. To get an idea of how much you should sell your condominium, you can observe recent sales of units within your condominium building or other similar condominiums in your area. You can also work with an appraisal firm around town and have them evaluate your property. You can also have an agent or a broker to help you with the pricing as well.
When setting the asking price, make sure to set a reserve price aside, which is the minimum price of the property you can accept.
Key Points
- Setting the right asking price is one of the most important thing when it comes to selling your property in Thailand.
- You should advertise your property whether you sell your property using an agent or not.
- Everything that is included with the property, such as furnishings and appliances, should be included in the purchase contract.
Using a Real Estate Agent or Broker
You need to consider whether you need to get a professional property service, such as using a real estate agent or a broker. A professional agent or broker can help you find a buyer, either locally or internationally, faster and easier. This is because they have better access to the market. They can also vet potential buyers to save you some time in responding to casual inquiries. In addition, an agent or broker should be able to assist you with the negotiation and provide valuable guidance so you can get the best price for the property.
In Thailand, real estate agents usually take up to 3% of the purchase price as their commission for the service.
Advertise Your Property
Whether you sell your property using an agent or not, you should advertise your property. If you hire an agent, make sure to reserve the right to sell the property yourself and don’t sign a contract with an unlimited time.
One of the best ways to advertise your property is by listing it on online property websites. These websites usually have a wider reach, thus providing you with much more exposure than hanging a ‘For Sale’ sign in front of your property.
When listing your property, make sure to make it stand out by using high-quality photos. Property with attractive pictures will attract more attention.
Having someone to provide legal advices is good way to avoid disputes.”
The Purchase Contract
When you find a prospective buyer, make sure to negotiate the terms. These include the agreed price and what items are included in the sale. A purchase contract should be drawn up when all parties involved reach an agreement.
Since Thai law retains the general principle of freedom of contract, all parties have the freedom to conclude any agreements as long as it’s not against public morals or the law.
Everything that is included with the property, such as furnishings and appliances, should be included in the agreement. In addition, you should include any liens or debts you have on the property in the contract. It is also recommended to have full and open disclosure of all physical aspects of your property and state it clearly in the sale and purchase agreement. While there is no legislative requirement to do so, it can help prevent any potential problems in the future.
All parties should sign the purchase contract. There is no legal requirement for documents to be notarized in Thailand. However, all copies of documents need to be signed as being true copies of the original.
The agent or the seller and purchaser can prepare the agreement.
A professional agent or broker can help you find a buyer, either locally or internationally, faster and easier.
Closing the Deal
After the seller and buyer reach an agreement and the purchase contract is made, it’s time to close the deal. The seller and buyer can meet at the real estate office or at a lawyer’s office (if a lawyer was hired) to sign the appropriate documents. You also have to visit the local Land Department office.
The required documents at the time of sale depend on the type of property you sell and the form in which the property is owned. If a company is involved, then a lawyer is necessary since the amount of paperwork required is large.
The following is some of the documents needed at the time of sale:
- Land or condo title deed.
- House Registration Document (Tabien Baan) if applicable.
- Passport or ID car.
- Any relevant tax, warranty, and documents that relates to the property.
- Power of Attorney form if applicable.
- Purchase agreement.
- Foreign Exchange Transfer form from the bank (for condominiums).
- Documents that states the percentage of foreign owned condos in the building is less than 49% (for condominiums).
- Marriage or divorce certificate if applicable.
- Document that states that there are no outstanding maintenance fees owed.
Tips to Make Your Property Sell Faster
The following are some things you can do to make your property sell faster:
- Finish any repairs before you advertise and show the house.
- If your property is vacant, make sure that it is cleaned regularly. If there’s a garden and lawn, make sure that they are regularly trimmed.
- Always be realistic. Avoid setting the price above market levels.
- Have an appraisal done to the property to discover the market value.
- Prepare and gather every document that relates to the property. Make sure that the documents are readily accessible.
- Draft a purchase and sale agreement even before you find a potential buyer.