Things to know when selling a condo unit to a foreigner
As the purchase and sale of real estate, such as condominiums, is not limited to Thai buyers, it is important for sellers, whether professional or amateur, to have a basic understanding of how to sell to foreign buyers.
Foreign ownership of condominiums
Under the Condominium Act B.E. 2522 (1979), foreigners can own condominium units up to 49% of the total number of units in a building. The buyer must obtain a letter of certification from the condominium association stating the foreign ownership quota.
Sales contract
All businesses selling condominium units, whether the units are under construction, have been completed and will be registered as a condominium, or have been completed and registered as a condominium, are subject to contract law. Therefore, the contract between the business and the buyer must be in Thai and be clear and easy to read. It is recommended that the business also provide an English translation of the contract to facilitate the buyer’s understanding before making a purchase. The contract should at least include the following key points:
- A clause that confirms that the business has ownership of the land or condominium unit and that the person signing the contract is authorized to bind the business. The contract should also attach evidence of ownership of the land or condominium unit, as well as evidence of the person’s authority to bind the business.
- A clause that states whether the land, building, and condominium unit have any obligations to a financial institution or other party.
- The location of the land, the number of the land title deed, the area of the land in the project, and a map showing the boundaries of the land and the location of the condominium building.
- The price per square meter and the number of square meters of the condominium unit to be sold.
- The purpose of using all areas of the condominium building, the relevant details of the condominium unit in the building, the list and size of common property and amenities.
- The payment of income tax, business tax, and stamp duty for the transfer of ownership of the condominium unit. The business will pay the income tax, business tax, and stamp duty for the transfer of ownership of the condominium unit. The business and the buyer may agree to share the cost of the registration fees for the transfer of real property rights and interests in the condominium unit.
Documents for transfer of real property ownership (buyer)
The documents required for the transfer of ownership of a condominium unit are the same as those required for the transfer of ownership of land or land with buildings. The only difference is that for a condominium unit, a letter of clearance of debt issued by the condominium association is required.
Documents for transfer of real property ownership for Thai natural persons (buyer)
- A copy of the Thai national ID card of the buyer and spouse (if applicable) and documents showing any changes in name or surname (if applicable).
- A copy of the household registration of the buyer or spouse (if applicable).
- A letter of consent from the spouse (if applicable).
- A copy of the marriage certificate (if applicable).
- A power of attorney (if the buyer appoints someone else to act on his or her behalf).
- A copy of the Thai national ID card and household registration of the person authorized to act on behalf of the buyer.
Documents for transfer of real property ownership for foreign natural persons (buyer)
- A copy of the passport.
- Evidence of wire transfer into a foreign currency account (THT 3) or into a Thai currency account (THT 40) or a bank certificate confirming the wire transfer or evidence of exchange of foreign currency into Thai baht or a declaration form for foreign currency through the Customs Department or evidence of withdrawal of Thai baht from a Thai currency account (from a bankbook) or
- A copy of the foreign identification card (can buy a condominium unit without providing evidence of wire transfer or showing a bank account) or
- A copy of the residence permit (RESIDENCE PERMIT) (can buy a condominium unit without providing evidence of wire transfer or showing a bank account) or
- An investment promotion certificate from the Board of Investment or documents showing that the company has received investment promotion
- A power of attorney (if the buyer appoints someone else to act on his or her behalf).
- A copy of the Thai national ID card and household registration of the person authorized to act on behalf of the buyer.
Document Checklist for Transfer of Title for Foreign Corporations (Buyer)
Documents required for foreign corporations registered in Thailand:
- Certificate of Registration of Foreign Corporation
- Certificate of Incorporation from the Ministry of Commerce
- List of Shareholders (not older than 1 month)
- Board of Directors Meeting Minutes, stating the purpose of purchase and the source of funds used for purchase
- Copy of the passport of the authorized director
- Letter showing a sample signature of the director
Documents required for foreign corporations registered abroad:
- Certificate of Registration of Foreign Corporation
- Certificate of Incorporation from the Ministry of Commerce
- List of Shareholders (not older than 1 month)
- Board of Directors Meeting Minutes, stating the purpose of purchase and the source of funds used for purchase
- Copy of the passport of the authorized director
- Letter showing a sample signature of the director
- Notarization of a document listing the certificate of registration, power of attorney, and signatures of directors (for foreign corporations registered abroad)
- Proof of wire transfer to a foreign currency deposit account (TD 3) or a local currency deposit account (TD 40) or a bank certificate certifying the wire transfer or proof of exchanging currency into Thai baht or proof of a foreign currency declaration form through the Customs Department or proof of withdrawing Thai baht from a local currency deposit account (from the passbook)
- Investment promotion documents from the Board of Investment
- Power of Attorney (if authorized to another person)
- Copy of ID card and copy of residence registration of the authorized person
Note: Foreign corporations can only purchase condominiums. Land or land with buildings cannot be purchased.