In Thailand, the law prohibits foreigners from buying land. Nonetheless, as a non-citizen, you can purchase apartments and condominiums.It’s worth noting that foreigners can only own up to 49% of the total units in an apartment or condo building. Interestingly, you can buy the whole building as a foreigner, but not the land it stands on.

If you’re interested in buying a Thai villa or a larger property, you can do so through a leasehold agreement, but you won’t own the land.

Another option is setting up a Thai private limited company with mixed Thai and foreign ownership, where foreign ownership is capped at 49%. This setup allows you to legally purchase land or property in Thailand.

Buying property in a foreign country can be daunting, especially when the laws and procedures are different from what you’re accustomed to. It doesn’t help that Thailand’s real estate market is less regulated compared to other nations.However, with thorough research and precautionary measures, purchasing property in Thailand can be a secure and worry-free process.

Engaging the services of a dependable and impartial real estate lawyer is crucial to ensure a smooth transaction. Given the unregulated nature of the industry in the country, a seasoned attorney is necessary to navigate the intricate buying process, which involves managing all documentation, performing due diligence assessments, and fulfilling legal requirements.

One of the most common errors when purchasing real estate in Thailand is neglecting to hire a specialized real estate lawyer. Although it may not be mandatory, it is highly recommended. Without one, it is easy to stumble into avoidable complications and setbacks, and even unintentionally violate the law.There are other factors to keep in mind, such as:

Conducting due diligence – all financial transactions in Thailand need to be thoroughly examined to ensure that the property purchase is a wise investment. This may involve investigating the developer’s background and verifying with previous owners that they are content with the quality of construction. These are all procedures that an experienced real estate attorney should undertake on your behalf.

Deposits – unless the deposit agreement includes a specific clause allowing for a “get out,” the deposit you pay to reserve the property will be non-refundable if you change your mind.

When acquiring a property as a foreigner in Thailand, it is important to provide proof of the source of your funds. In the case where you do not have any income generated within the country, you will require a document showing that the funds used for the purchase are coming from overseas. The most common method of transferring funds is through a bank transfer, with the exchanged funds resulting in the issuance of a Foreign Exchange Transaction form (FET or FETF) by the involved bank.

The FETF document clearly indicates both the name of the sender of the funds overseas and the receiver of the funds. However, it is mandatory that either the sender or receiver name is the buyer, with the property name specified as the transfer object.

In the event that someone else pays on your behalf, and the buyer’s name does not appear as either the sender or receiver of the transfer, the transfer document must contain the buyer’s name.

You don’t need a Thai bank account for the buying process itself. However, suppose you are purchasing a property for investment, having a Thai bank account will help if you plan to receive rentals from your tenants locally. Having access to local funds and local transfers via bank Apps is also convenient. For example, it simplifies the process of transferring unexpected expenses when overseas.

If you want to open a simple savings or current bank account, some banks in Thailand will ask for a valid work permit or a letter of residency of your address in Thailand from your respective embassy. Other banks may only request the original copies of your passport, an original lease agreement if you’re a tenant or an original sales and purchase agreement if you’re a property investor. The whole process usually takes around 30 minutes and you’ll have a Debit Card and a Bankbook. You can use the Debit card to pay or withdraw money in any country outside Thailand.

Let’s go over the steps involved in purchasing a home in Thailand:

SELECTED THE RIGHT HOMES

At Martínez-Colomer Real Estate, we take the time to understand our clients’ needs and desires. We work closely with them to create a tailor-made list of properties that meet all their requirements.

HOME VISIT

We arrange for in-person visits to the selected homes and take our clients on a tour of the neighborhood, highlighting the various facilities and services available in the area.

MAKING AN OFFER

Once our clients have found their dream property, we assist them in making an offer to the seller. The seller can accept the offer as is, or make a counteroffer with adjustments to the terms. We are involved in all negotiations to ensure a smooth transaction.

Once both parties have agreed and signed the deposit contract, the buyer will be required to deposit 10-20% of the purchase value.

DEPOSIT CONTRACT

At this stage, we highly recommend that our clients seek the advice of a specialist real estate lawyer. While it is not legally required, it is strongly recommended as the contract will be multi-page document. Our team can also introduce them to our specialist real estate lawyer.

It is important to pay attention to the following in the deposit contract:

• Due Diligence, as final transactions in Thailand require investigation to ensure the property purchase is a sound investment.
• Deposits, including specific “get out” clauses in the contract, as the deposit will be non-refundable if the buyer decides to back out.

SIGN PROPERTY CONTRACT

Once the deposit contract is signed,the lawyer will present all necessary documentation to the Land Department for registration and to obtain the title deed. Once the registration is approved, the buyer will pay the remaining balance. It is crucial to keep these documents in a safe place.

CONGRATULATIONS!

 Our customers will receive the keys and move into their new property. Typically, the process of closing the sale takes between 30-60 days.

IMPORTANT NOTICE:

When paying for the property purchase in Thailand, any money sent from abroad must be converted to Baht and clearly labeled to show the purpose. This will assist the buyer in the future if they decide to sell the house and bring the money back to their home country