Peculiarities of legal registration of real estate in Thailand and making payments

Peculiarities of legal registration of real estate in Thailand and making payments

Purchasing real estate abroad, especially in such exotic and attractive places as Thailand, is always associated with a number of legal issues and formalities. In Thailand, the process of acquiring real estate and related payments has its own unique features.

Legal Clearance

One of the key considerations when buying real estate in Thailand is titling. There are several types of real estate titles, namely:

1.Freehold (Freehold):

This is the most complete and unconditional ownership of land and real estate.

Foreigners can acquire freehold title to real estate in certain limited cases such as investment in construction or residence on a business visa.

2.Long-term leases (Leasehold):

Foreigners may enter into long-term leases on real estate.

Usually the term of such an agreement is 30 years and can be renewed for 30 years.

The legalization of real estate in Thailand involves several steps:

1.Property Selection: Selecting a suitable property, whether it is an apartment or a villa.

2.Document verification: It is important to check the ownership of the property and the legal cleanliness of the property. This includes checking the title deed (Chanote for land, Condominium Title Deed for apartments, etc.), tax and fee arrears.

3.Signing the Purchase and Sale Agreement: Once the property has been selected and the terms of the transaction have been approved, the Purchase and Sale Agreement is signed. This document should clearly spell out the terms of the transaction, price, payment methods and other material terms.

4.Transfer of Deposit: Often in Thailand, the buyer will pay a deposit (2% for a villa, 100,000 baht for a condominium) as security for the transaction.

5.Registration of the property: After signing the contract and paying the deposit, the process of re-registration of the property begins. To do this, you need to prepare all the necessary documents and submit them to the Land Registry Office (Land Department). This includes:

Signing the transfer agreement in front of a notary.

Payment of taxes and fees (1.1% property tax Leasehold, 6.3% on Freehold)

6.Obtaining the title deed in your name.

7.Registering the transaction: After completing all formalities and payment of taxes and fees, the transaction is registered with the Land Department.

8.Finalizing the transaction: After registering the transaction and obtaining the title deed, you become the full owner of the property in Thailand.

Buying with a mortgage:

Buying real estate abroad, especially in exotic locations such as Thailand, can be an exciting yet challenging process. For Russian buyers wishing to purchase property in Thailand with a mortgage, it is important to understand the peculiarities of the mortgage lending procedure. Below are steps and tips to help you realize your dream of owning Thai real estate.

1- Market research and real estate selection

The first step is to research the real estate market in Thailand. Determine your preferences regarding location, type of property (apartment, house, villa) and budget. Keep in mind that mortgage loans usually require a down payment of 20% to 30% of the property value.

2. Document preparation

Before you begin the process of obtaining a mortgage, make sure you have all the necessary documents. This usually includes:

Passport and a copy of your passport.

Proof of income (salary certificate, tax returns).

Bank statements for a certain period of time.

A certificate that you are not cohabiting in other credit obligations.

Documents for the selected property.

3. Selecting a bank and applying

Choose a bank that provides mortgage loans for foreign nationals to buy property in Thailand. Some banks such as Bangkok Bank, Kasikornbank and Siam Commercial Bank have mortgage loan programs for foreign buyers.

After selecting a bank, apply for a mortgage loan. The bank will usually request your documents to assess your creditworthiness and evaluate your chosen property.

4. real estate appraisal

The bank will conduct an appraisal of the selected property to determine its market value. This will allow the bank to ensure that the value of the property matches the loan amount requested.

5. Approval and conclusion of the contract

After a successful property appraisal and review of your financial documents, the bank will approve your mortgage application. You and the bank will then enter into a mortgage agreement that outlines all the terms of the loan, including the interest rate, loan term and monthly payments.

6. Transfer of funds and paperwork

Once the contract is finalized, you will be required to deposit the down payment and other required funds into the real estate seller's account. The bank will then transfer the funds to the seller and you will receive the title to the selected property.

7. Payment of monthly installments

Once you have purchased the property, you will be required to make monthly mortgage payments as per the terms of the agreement. The bank will invoice you for the payments.

Buying a property with a mortgage in Thailand can be a complicated process, so it is advisable to seek help from professionals in the field such as lawyers and real estate agents. They can help you with the legal aspects of the transaction and make the process more transparent and secure.