Four Steps of Owning a Condo - New Development
1. Title Search
This will be verify the status of a land over which a condominium is constructed. Normally, a land would be under mortgage with a supporting bank.
2. Sale and Purchase Agreement
This document specifies the selling price, terms and conditions of the sale. It is advised that a contract is to be reviewed by a lawyer for the best protection of rights of the buyer, however many buyers in Thailand do not do so.
a) Deposit: Normally, 1% of the total price of a unit is required as a deposit payment to reserve a right to purchase a condo.
b) Down payment: a sum of 25% or 30%, depending on the agreement between a buyer and a seller, of the total price of a unit is required as a first payment of the price of a unit. There may also be some payments to be made between a down payment and a transfer date. This will depend on your written agreement with the developer. The buyer's money to buy a condominium must be transferred into a Thailand bank account from abroad.
4. Registration of Ownership
After the delivery of condominium unit and the final payment, the seller will than transfer the ownership of the condominium unit into your name. The registration fee, stamp duty, and withholding tax must be paid at the time the transfer of ownership took place.
Four Steps of Owning a Condo - second hand sale in Condo Development
1. Title Search
Simila to a title search for a new condominium project, this step is essential for a purpose of verifying the status of the land where the building is located. Normally, as a used condominium, the land shall not be under mortgage, or, if it is, the buyer would acknowlegge his position over such land.
2. Sales Agreement
If you buy a condominium from an individual, the sales agreement is normally a ready-to-use contract (An agreement whice is not especially drafted for the sale between buyer and seller).
A norm is that a buyer shall pay a full price of property to the seller upon the transfer of ownership at the Land Department.
4. Registration od Ownership
When buying a condominium, the buyer (or a seller, or both parties, depending on the agreement between parties) shall be responsible for the payment of registration fee, stamp duty, (in case of having owned the property for more than 5 years) or a special business tax (in case of having owned the property for less than 5%), and withholding tax.