Buyer’s guide

Buyer's guide

So you've decided to buy property in Thailand and are willing to cooperate with us. Why such cooperation can be beneficial to you, you can read here. We believe that you have had an opportunity to read about the legal aspects of the acquisition and possession of a house or condominium. If you have any additional questions - we will be happy to answer them.

Buying an apartment in a new development

1. How to choose?

There are more than a hundred (!) new condominium projects currently being built in Pattaya. Each developer is trying to offer a different “Flavour” and offering a different theme making each complex in their own style. The choice is huge. What to do? The list of new projects is not a mystery, and you can easy find it on the net. We also have our own list. But first you need to determine your requirements, because there are so many different options – to find something for yourself, or find an apartment that is easy to rent and therefore give you a return on your investment? You have to select the area as well as determine the level of quality that you can afford, based on your budget. You have to understand - whether you want to buy an apartment in the construction phase (which is obviously cheaper), or you're looking for a ready-made proposal. There are a lot of factors (including the assessment of the developer on the basis of its experience, some preliminary information about the possible future construction in this location, etc.) and we are ready to help you find out.

After a preliminary online selection, you probably (or obviously) will want to personally want to see either the finished project, or the construction site (or the site of the future construction) and visit the developer’s showroom. We will help you plan and organize these visits.

If you have any additional questions (for example, you want to buy two apartments and combine them into one, you need remodeling, or you have special requirements on the furniture package, etc.) - we are ready to help in solving these issues.

2. The Transaction Procedure

Once you have finally made your decision, the procedure starts. Just note that it can be done remotely and there is no need for you to be in Thailand at this time. We will act as the intermediary between you and the developer to make sure there are no misunderstandings between either side at any time. What are the steps?

First Step. You reserve your chosen house or condominium unit with a small booking fee, the developer issues a receipt and removes your chosen property from the market. The amount of booking fee depends on the seller and usually is between 30 to 50 thousand Thai Baht. You can pay by cash or credit card, if you are in Thailand or transfer money remotely (bank transfer). This advance payment will be included in the total amount of payment under the contract, but if you decide to cancel the purchase, it will (most likely) not be returned by the developer.

Second Step. After completing your reservation, developer will prepare the sales contract. To do this, the seller must have a copy of your Passport, your official address, phone, email, etc. It is possible to include to have the contract in more than one name if you so wish i.e. you and your partner as the buyers.

The developer provides a payment plan for a new condominium or house. In some cases, the installments can be up to three years (do not confuse it with a mortgage loan). The initial payment is typically 20-30 percent of the contract and must be paid within a few weeks after signing the contract. The construction period can be from 9 months for small projects up to 2-3 years for large complexes.

In the sales contract you should stipulate the agreed price and payment schedule, the date of transferring of ownership, the exact details of the condominium, principle of payment of fees and taxes on registration of transfer of ownership, issues of guarantees and examination (due diligence). The contract could be signed within Thailand or signed remotely (original copies signed by the developer will be sent to your country, and you will send back the signed copy to Thailand by express (courier) delivery.

Third Step. Settlement and registration of property rights.
Usually transferring the rights and settlement occurs simultaneously, when developer has received last tranche of payment. Accordingly, registration of ownership will be done when the developer will be in receipt of the full payment. Registration of property rights in the Land Department, as a rule, will be fulfilled by the developer (this requires authorization papers), after which you will receive a government issued certificate of ownership, a chanote (title deed) of the apartment. All legal issues relating to foreign quotas, licensing condominium registration in the name of the company, etc. you can see here.

Buying a property in the secondary market

1. Selection

At the pre-qualification stage, you need to work with our online database, or visit our office, where you together with one of our consultants, can review and discuss the various options. It should be noted that the number of proposals that are presented on the site, will be less than we have in our local database (for example, due to the poor quality of photos, some proposals are not showed on the Internet). Once you have selected some properties that interest you, we begin to create a schedule for presentation visits. We cannot imagine that you can decide to purchase "at a distance" without personal inspection (well, maybe for the rare exception, when the property for sale is familiar to you).

2. Negotiations with the seller

If you are buying new property, you usually follow the standard terms and conditions offered by the seller and sign a standard contract of sale, but in the case of secondary market contract - it is always a subject of free discussion and negotiation. This is a very important stage on which you will define the final price, possible financing from the owner (installments), stipulate the size of deposit, define the responsibility of each party in payments of taxes and fees required in the conveyance of the property, etc. It is also very important at this time to conduct independent technical and legal assessment of the proposed property (due diligence). Here you can read about what the criteria in this study should be considered. We are ready and able assist in this analysis.

3. Preparation of the transaction

If you buy an apartment in a licensed condominium, then you need some special documents to confirm your eligibility to acquire an apartment in full ownership (for instance, FET-form). We will help prepare the contract, in accordance with the reached agreements and help to prepare the necessary documents for you. We will try to provide the maximum security of your rights, including penalties of the seller if he was not able to transfer the property to your name within the prescribed period of the contract, etc. However, we will also protect the interests of the seller and the contract will include conditions of your financial responsibility in the event that you are unable to make payment, in accordance with the terms of the contract.

4. Registration of the deal

Closing of the transaction (re-registration of the property rights) takes place at the Land Department. At the time of registration all taxes and fees shall be paid (read here about the taxes in the case of sale of apartment and here in the case of the sale of the house). You can find more information about the legal aspects of real estate owning, property rights registration procedure and transfer taxes and fees at our legal section.

INSTANT CONTACTS

Phone +66-38-412-301/2
Fax +66-38-429-462
E-mail: info@pattayarealty.com


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