There are many different ways to purchase and own property in Thailand, from purchasing a single plot of land for a house to purchasing a condominium unit. Depending on the type of property purchased, there are certain legal requirements that must be met to ensure that the transaction goes through smoothly and that no issues arise later on.
1. Transfer of Ownership and Taxation
One of the most important aspects of any real estate transaction is the transfer of ownership from one person to another. This is usually done at the Land Department, and it’s essential to have a clear understanding of how the process works.
2. Land Title Deed and Registration of Encumbrances
The first step in the Thai Land Title Transfer is to obtain a title deed from the Land Department. This document shows the buyer’s rights to the land, and registered encumbrances (such as mortgages and leases) on the property.
3. Power of Attorney
A power of attorney is a legal document that authorizes another person to act on your behalf, such as an Attorney-in-Fact, and gives them permission to deal with specific legal matters for you. This is especially useful for people who are unable to physically attend a Land Department office in order to complete the transfer of ownership.
There are several types of taxes that apply to property transfers in Thailand, and these include transfer fee, stamp duty, business tax, and withholding tax. It is important to consult a qualified tax specialist to determine which fees are applicable in your case.
5. Foreign Exchange Transaction Certificate
The remittance of funds from overseas to be used for the purchase of a condominium unit is a government regulation that must be complied with. Non-compliance with this requirement will hinder the registration of the property under the buyer’s name and may lead to additional costs for you in the future.
6. Superficies and Registration of Ownership
When buying a house in Thailand, it’s important to make sure that the buyer is actually the owner of the house itself. There are a number of procedures to register this, including the issuance of a Superficies and registering the ownership on a Thai Title Deed.
7. Remittance of Money
Depending on the type of property purchased, it is possible to move money between Thai and foreign bank accounts using 3 different methods: wire transfer, cheque, or bank draft. In any event, the amount transferred should be small enough to avoid paying a transaction fee.
8. Buying Property for a Foreigner
In order to purchase property in Thailand as a foreigner, you must have a valid passport or other immigration documents. If you do not have these documents, TILA LEGAL can help to obtain them on your behalf.
9. Remote Ownership Transfer with Power of Attorney
There are a number of reasons why you might need to transfer your property ownership remotely from overseas. Whether it’s to prevent an unforeseen issue arising or to avoid having to pay high taxes on the transfer of ownership, a Power of Attorney can be used to allow you to complete the transfer remotely from overseas. This can be done either through video-call conferences or by a notarized Power of Attorney.