Checklist and Key Steps for Buying a Condo in Thailand

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Checklist for buying a condominium

Ready to buy a condominium in thailand

Purchasing a condominium unit is an exciting project but it is essential to fully understand the whole process before making any decision or financial commitment.
Our team of experts has gathered all essential information to create a short yet comprehensive 8-point checklist to guide you in the process.
Sense Property is committed to support and assist our buyers in the purchasing process and the transfer of property with the highest dedication. For other useful information, read:
- Tax regime on condominiums
- Financing for foreigners

Our comprehensive checklist

  • STEP 1: Check all costs related to the purchase (mandatory)

    A/ Conveyance taxes: Are they included in the asking price? For more information, read the tax regime page.
    B/ Commission: Is the agent fee included in the asking price? The commission is generally paid by the seller.

  • STEP 2: Check the condominium residence (mandatory)

    A/ Cost of utilities (electricity, water, etc) based on an average normal consumption of former residents B/ Common fees due by every co-owner of a condominium for the maintenance and management of the residence. They are determined on a monthly basis and generally comprised between 40 and 80 THB per square meters per month for second-hand condominiums, and between 90 and 180 THB per square meters per month for new condominiums (and most projects completed since 2018)..
    C/ Legal status of the residence: Is it registered and licensed as a condominium?
    D/ Internal rules of the condominium
    E/ Financial statements and sinking fund of the condominium: Check the ratio of unpaid common fees and if there are any renovation projects planned or budgeted (elevators, piping/drainage, roof, paint, etc.)

  • STEP 3: Check the title of deed (mandatory)

    This is the “ID” of the property, the only official ownership document. There are always 2 identical copies: the first copy is held by the land department (the public authority in charge of property ownerships), while the second copy is held by the owner.
    - Investors need to review the title deed held by the seller (the land department won’t release it to avoid loss or dispute)
    Notary service is not mandatory for property transactions in Thailand, it is therefore advised to hire a lawyer for due diligence.
    The back-side of the deed details the changes of ownership and potential liabilities and mortgages on the property.

  • STEP 4: Sign a Memorandum of Understanding ‘MoU’ (optional)

    This document contains the most important details of the transaction. Signing a MoU can be a useful step in case the buyer wants to secure the unit quickly before the SPA is signed (see step 7). This is usually followed with the payment of a booking fee up to 1 or 2% of the purchasing price, which becomes part of the security deposit.

  • STEP 5: Sign the Sale and Purchase Agreement 'SPA' (mandatory)

    This is the only necessary document to carry out the purchase or sale of a condominium unit. l† includes information about: - the property,
    - the seller,
    - the buyer,
    - the terms and conditions of the transaction.
    lt is usually recommended to hire a law firm for the draft and/or review of the SPA. Once the SPA ¡is signed, the buyer confirms his commitment by transferring immediately a security deposit of about 10% of the agreed purchase price. The transfer of property by the land department will occur within 1 to 2 months during which the outstanding amount is due by the buyer.

  • STEP 6: Conduct technical inspections (highly recommended)

    The buyer may ask technicians or architects to inspect the quality and state of the unit, between the date of the signature of SPA and the date of transfer. lf any structural defects in the unit are observed, the buyer could decide to stop the transfer the property and claim a refund of the security deposit. To avoid any future dispute with the seller, it is recommended to add a relevant clause to the SPA.

  • STEP 7: Transfer the condominium unit (mandatory)

    The buyer and the seller or their representatives meet at the land department with their agent and/or lawyer on the date agreed on the SPA.The buyer is usually requested to bring 3 cheques (cashier cheques only, ¡.e. verified by the bank): - T for the seller corresponding to the outstanding amount on the sale (minus the tax and the commission), - T for the land department corresponding to the tax due by the seller, - 1 for the agent corresponding to the commission fee due by the seller, The whole process at the land department only takes a few hours.

  • STEP 8: Register the condominium unit in the “yellow book” (ecommended)

    This process takes place at the district office. Foreign buyers can declare if the property ¡is their first home ¡in Thailand, this will allow them to cut the special business tax after only 1 year of ownership (instead of 5 years if not registered). For more information, contact our team at Sense Property.

More about investing

Tax regime for condominiums
During the purchasing processing, there will be some compulsory taxes to pay to the relevant department before you can become the legal owner of the chosen property. Our experts have gathered some valuable information to help you understand better the whole process.
MORE ABOUT THE TAX REGIME >
How to open a bank account in Thailand
It is not compulsory to open a bank account in Thailand in order to complete the purchase of your property. However, if you are planning to live here or let your property, it might be handy to have one. Find out more about the process to open a Thai bank account smoothly.
HOW TO OPEN A BANK ACCOUNT IN THAILAND >

More information

For more information on how to invest in Thailand:

READ OUR INVESTING GUIDE >
DISCOVER INVESTMENT OPPORTUNITIES BANGKOK >