Connect with us

Property

By the Book: Tips on handling property transactions

Legacy Phuket Gazette

Published 

 on 

PHUKET: With the island’s real estate market staying strong, some owners could be thinking of selling their property. If so, here are some tips for making this move.

Establishing a Price

Consider what you paid for the property, how long you have lived there, what similar properties have sold for, any improvements added, present condition of the property, ask the agent about the current property climate and arm yourself with the facts.

Signage

Allowing the agent to erect a sign is very important as their brand name and reputation may draw in passers by as they understand the professional nature of the company which can assist with the buying process while also representing their interests.

Qualifying the buyer

A major part of the agent’s job is to ensure that you have a genuine buyer, that he or she is serious and that they actually have the funds available. Many times private sales end in disaster and wasted effort due to misunderstandings between the parties and lack of knowledge of the buying process.

Price Parity

If you are not listing exclusively with one agent, then ensuring that other agents offer the same price is important.

Negotiating

The key to remember is to not get wrapped up in any games. If you keep your goals in focus at all times, you will be better able to respond to offers. You will have three choices when an offer comes in. You can accept the offer, reject the offer or make a counter offer. In the end it is what the buyer is willing to pay that counts.

Sharing costs

In Thailand, it is customary for the seller and buyer to share the transfer costs 50/50, but this is up to you to negotiate. Sellers must understand the costs associated with selling their property and incorporate them into the selling price. Trying to renegotiate who pays what fees after a selling price has been agreed with a buyer will almost certainly lose the sale.

Buyer payment

Let your agent know at the beginning where and how you wish to be paid, as many buyers wish to make payment offshore or outside Thailand and they need to know up front to avoid unnecessary bank and interest charges. Regardless, a percentage of the purchase price must be paid in Thailand to cover transfer and tax fees but the amount depends on negotiation with the seller.

Title Deed

Ensure that there are no complications and that the property is free to be sold with no encumbrances and that the seller is the name on the back of the title deed (or company). If the property was set up through a Thai company, then the company must be ‘clean’ and cannot have been used for other business.

Sellers must ensure that they have all necessary original documentation for their property to complete a sale. A seller should be prepared to provide a buyer with copies of all property documents as soon as a sales price has been agreed so the buyer can complete due diligence on the property. If documentation cannot be provided in time, or is missing, this will delay the sale and could lose the sale altogether.

Incentives

To set your property aside from others, it is a good idea to offer some enticement such as advance rental bookings, thereby effectively giving the buyer a reduction in sales prices; free furniture; maid for a period; and so on.

Reservation deposit

When the buyer makes an offer acceptable to the seller, usually a non-refundable deposit is taken until such time as contracts are exchanged. This is a minimum 150,000 baht or 1 per cent of the selling price, whichever is greater. The reservation agreement allows the buyer 21 to 45 days to review and agree to the contracts. If a deal cannot be reached in that time, the reservation can be extended by mutual agreement.

From offer to close

It is normal once a reservation deposit has been secured for the process to take one to two months or more to the final payment. The buyer first needs a lawyer to do due diligence and for the seller to provide a ‘sale and purchase contract’ which has to be reviewed and agreed by the buyer’s lawyer and any changes made and agreed between the parties.

Once this is completed and contracts are signed, a visit to the land office to exchange title deed and buyer’s final payment is the final stage. In some instances, you may need to first give the land office a 30-day notice period prior to transferring ownership.

— Kevin Hodges

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Tourism2 hours ago

TAT announces 1,500 travellers arriving in Phuket July 1

Coronavirus (Covid-19)4 hours ago

5 million Moderna vaccines for Thailand, half of expectation

Coronavirus (Covid-19)7 hours ago

Covid-19 round-up for expats 3: Are countries helping Thailand?

Phuket Sandbox July 1st

days
hours
minutes
seconds

Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

image
Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)7 hours ago

Covid-19 round-up for expats 2: Will your country give a vaccine?

Coronavirus (Covid-19)7 hours ago

Covid-19 round-up for expats 1: Should you travel to Thailand?

Thailand7 hours ago

Thailand News Today | Lockdown for BKK? Demonstrations back on, Pathum Thani shooter arrested

Thailand7 hours ago

Myth busted: Drinking alcohol does not kill Covid-19 – VIDEO

Phuket9 hours ago

Power outages coming to Kathu, again

Tourism9 hours ago

List of countries by Covid-19 risk level, classified by Thailand’s DDC

Thailand9 hours ago

Legalised marijuana up next? Courts get closer to legalising kratom

Phuket10 hours ago

Phuket police raids nab suspects for allegedly having guns, drugs, kratom

World11 hours ago

Antivirus legend John McAfee apparent suicide in Spanish prison

Coronavirus (Covid-19)11 hours ago

Thursday Covid Update: 4,108 new cases; provincial totals

Coronavirus (Covid-19)11 hours ago

Bar girls in Pattaya arrested for allegedly violating Covid restrictions while live streaming

Protests12 hours ago

Gathering for 89th anniversary of constitutional monarchy

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand6 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending