Process of Buying a Resale Property in Thailand

Hula Property
Process of Buying a Resale Property in Thailand

Process of Buying a Resale Property in Thailand

Purchasing a property on the secondary market from a private seller involves a straightforward process, condensed into 6 simple steps:

Step 1: Agreement of Terms and Conditions
Ensure a clear understanding and agreement on major transaction terms and conditions, including:

- Purchase Price
- Reservation Deposit Value (to remove the property from the market)
- Buyer's Due Diligence
  - Is the reservation deposit refundable? Under what conditions?
- Inclusions in the Purchase Price (e.g., furniture or fittings)
- Responsibilities for Taxes and Transfer Fees (buyer vs. seller)
- Completion Date for the Transfer of Ownership

By establishing consensus on these key elements, both parties lay the foundation for a smooth property transaction.

Step 2: Reservation Agreement
This document outlines the general purchase terms, conditions, and timeline associated with the pending property purchase. It serves as an initial agreement to solidify the commitment between the buyer and seller.

Step 3: Reservation Deposit
Secure the property by making a deposit, typically ranging from 5-10% of the purchase price (varies by market). This deposit, held by either the broker, lawyer, or seller, removes the property from the market and demonstrates the buyer's serious intent.

Step 4: Sales and Purchase Agreement
Within approximately 30 days, review the Sales and Purchase Agreement, a contractual document detailing the conditions of the sale. During this period, buyers may appoint an attorney to conduct legal due diligence on the contract, holding company, and land title deed.

Step 5: Settlement & Transfer
Parties, or their representatives (agents/lawyers), set a transfer date at the government land department. Buyers prepare funds for the balance of the purchase (excluding the deposit), and sellers present original ownership documents for the transfer. A representative, appointed through a Power of Attorney, may execute the transfer. The transfer mechanism at the Land Department can involve telegraphic transfer to a legal representative's account, followed by a cashier's cheque presentation by the buyer or their representative after the official transfer.

Step 6: Handover
With ownership officially transferred, keys and ownership documents are provided to the buyer. The new owner's details are registered with the Provincial Electricity Authority and, if applicable, the building or project's Juristic Department for the next billing cycle of CAM fees/electricity. This step marks the culmination of the property acquisition process.

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