Condominium lawyers: Bangkok, Pattaya, Hua Hin, Phuket
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Condominium acquisition in Thailand
A condominium is an apartment building in which each apartment is owned separately by the people living in it, but also containing shared common areas. Condos are regulated by the Condominium Acts of Thailand and registered with the Thailand Land Department. Each condominium unit has a condominium unit title deed. This document states the owner of the unit and if there are any third party rights registered against the unit such as a lease or mortgage. The apartment unit title deed is an important document officially administrated at the local land office where the condominium is located.Foreigners are under the Thailand condominium act allowed to own condominium apartment units (condos) freehold in Thailand. There is however one restriction which aims to limit foreign freehold ownership of condos in Thailand; not more than 49% of the total floor area of all units in a condominium building combined can be foreign owned. In case of 100 equal units 49 can be foreign owned, the other 51 must be owned by Thai nationals. The units in a condominium project exceeding the 49% foreign freehold ownership quota may be sold under a registered leasehold to foreigners but must be owned by Thai nationals. There is no restriction for foreigners renting real estate in Thailand. Condo contracts for hire, lease or rental exceeding 3 years must be registered in the foreigner's name on the condo unit title deed.
Unless (section 19) the foreigner is permitted to have residence in Thailand under the Immigration Law or permitted or to enter Thailand under the Investment Promotion Law, the main requirement under the Condominium Act for the purchase of a freehold condo by a foreigner is that the full purchase price for the condo unit must have been remitted into Thailand in foreign currency (see current exchange rates).
The handling bank inside Thailand must exchange the amount of foreign currency into Thai baht and will issue a Foreign Exchange Transaction form for amount exceeding 50,000 USD (or equivalent in other currencies), and for lesser amounts a bank's FOREX credit note and confirmation letter of the transferred amounts in foreign currency on request. Without proof of remittance of the full purchase price into Thailand in foreign currency and exchange into Thai baht the Land Department cannot register ownership of a condominium in the foreigner's name.
Resources
| Online contracts drafting and review - from 4,800 THB | Condominium conveyancing package - from 39,500 THB (all in) |
- Click here for our contact details and quick contact form. Order a service by filling in the contact form we will try to respond as soon as we can (usually you will receive a reply within 24 hours)
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Buying a condominium 'off the plan' in Thailand
Buying a condominium in a project that is not yet completed or based on the plans of a building requires a different approach than buying in a completed building or a resale unit. In case of an off the plan purchase the pre-contract phase should include a check on the background and track record of the developer, including verification with government departments if various development licenses have been granted or applied for and if the project is legally viable (planning and land title deed issues). The pre-contract due diligence phase is aimed at minimizing the risk of loosing your deposits and discovering existing legal issues that could obstruct completion of the project and possible default by the developer. This includes reviewing and negotiating the terms and conditions of the sale and purchase agreement (i.e. including minimum contract standard clauses protecting the buyer and advising on the procedure of escrow in Thailand).
An off the plan purchase of a condominium by foreigners could involve a freehold or leasehold purchase contract, depending if the 49% foreign quota in the project has been sold out. The sale and purchase contract of a condominium by a foreigner should clearly state that it is a condominium registered under the Thailand Condominium Act and if it is a freehold or leasehold purchase. The condominium freehold purchase contract in an off the plan project (not re-sale) must comply with minimum standards as required by the Condominium Act and Consumer Protection Laws, but this does not apply to a leasehold purchase. Note that in 90% of the reviewed contracts we see provisions included in the contract that are not according to the law (e.g. relating to the building warranty periods or calculation of assignment fees or transfer costs that are passed on to the buyer but are by law the responsibility of the developer). Also in condominium leasehold sale agreements aimed at foreigners we often see controversial clauses that should be explained as these are not always warranted by existing Thai law.
We review condominium purchase and leasehold contracts online for 4,800 THB. A qualified English speaking Thai lawyer will advice in detail on the contract and suggest required amendments (if any) and advices on compliance with the law. In the majority of the cases we review a condominium purchase contract this is profitable for the buyer. You will save on lawyer fees and travel time.
The unit contract sale price in an off the plan sale and purchase agreement is usually based on the 'saleable' floor area (price per square meter according to the plans of the building) and the final price on the 'registered' floor area of the unit. Saleable area means the area on which the contract price is based, and registered area means the price based on the exact final floor area upon completion of the condominium building as measured by the Land Department (as will be shown in the condominium unit title deed). In the survey by the Land Department the registrable area is measured from the center of the walls between the units and is not the exact floor area measured from wall to wall. The outside structural wall of the condominium is again common property and not private property belonging to the unit. The final condominium price paid on transfer of the condominium based on the measured area by the Land Department is often higher than the original contract price as stated in the condominium sale and purchase agreement .
Resources
- Paying escrow in a condominium project
- Registered and unregistered residential apartment buildings
- Condominium Act (2008 updated)
- Condominium handbook (external)
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Online purchase contract review - from 4,800 THB
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Traditional lawyer off the plan purchase package - from 39,500 THB |
Condo acquired by inheritance (or gift)
The Condominium Act divides foreign heirs of condos in qualified and unqualified heirs for ownership registration of the inherited condominium unit. Unless the foreign heir or successor is qualified for ownership under section 19 of the Condominium Act, any foreign heir who acquires a condominium unit by inheritance, either under will or as a statutory heir, must dispose of the unit within one year of acquisition of the unit (section 19 septum Condominium Act). The mere fact of heirship does not qualify the foreign heir for registering foreign ownership at the Land Department and a foreign heir must meet the same criteria as any other foreign purchaser of a condominium in Thailand .
It is not unusual for foreign heirs obtaining ownership of a condominium by inheritance to encounter problems having to deal with transferring ownership of the condominium at the Thailand Land Department or even selling the unit in time. Foreigners owning a condominium could prevent problems by planning succession of their unit in a Thai last will, and foreign heirs of a condo unit should obtain legal advice and assistance to have their rights and duties under the Thailand Condominium Act explained in an early stage of obtaining ownership of the unit by legal professionals familiar with condominium conveyancing procedures.
| Thailand legal services by qualified lawyers - from 1,500 THB |
Condominium conveyancing package - from 39,500 THB |
Condominium Tabien Baan 
Each condominium unit has a unit title deed issued by the Provincial Land Department or its branch office and a Tabien Baan or House Registration book issued by the local municipality. The house book primary use is registration of the condominium unit's address and verification of a Thai person's address living in the condominium. The normal house book issued for each address in Thailand is the blue version of the Tabien Baan. Foreigners owning a property are usually not registered in the blue book as owner or resident. Opposite Thai nationals foreigners often have an empty blue house book, unless they have Thai residency.
There is a separate version of the Tabien Baan for foreigners, the 'yellow book'. It is possible for foreigners to exchange the blue book for a yellow book if the foreigner meets the specific requirements for the application. A yellow book is unusual and it is not necessary for foreigners to exchange the blue book for a yellow book. The majority of foreigners have the blue book together with the ownership unit title deed.
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