Checklist for Foreign Condominium Buyers

Before committing to a purchase, a buyer should:

1.Verify the condominium title deed and confirm the seller's legal ownership.  Check that the unit details match the title deed and that the seller has the legal authority to transfer ownership.  Check for registered mortgages or other encumbrances that may affect the unit or the ownership transfer.

2. Confirm that foreign ownership quota is available.  Foreign ownership in Thai condominium is generally subject to a legal limit of 49% of the total unit area in the condominium.  Confirm the available quota with the condominium juristic person and the relevant Land Office before proceeding.

3. Check outstanding common area fees, unpaid charges and other liabilities.  Ask the condominium juristic person to confirm whether any common area fees or other charges remain unpaid.  Clarify which expenses must be settled before the ownership transfer can be registered.

4. Review the sale and purchase agreement, payment schedule and ownership transfer arrangements.  Make sure the purchase price, payment deadlines, responsibilities of each party, and conditions for completing the transfer are clearly stated.  Understand the contractual remedies available if the seller fails to complete the transfer as agreed.  Any arrangements concerning furniture, fixtures or included appliances should also be documented.

5. Confirm the required bank documents for foreign fund transfers.  Speak with the receiving bank and check the documentation required to support the purchase, including applicable foreign exchange transaction evidence.  Confirm the requirements before transferring funds, particularly if payments will be made in several instalments.

6. Check applicable transfer fees, taxes and any restrictions on the intended use of the unit.  Estimate the relevant transaction costs and clarify how they will be allocated between buyer and seller.  If the unit will be rented out, check the applicable rental rules, condominium regulations and tax obligations.

Final Recommendation

Before signing the agreement or transferring a substantial amount of money, resolve any outstanding questions about ownership, encumbrances, payment arrangement and the seller's contractual obligations.