Buying off plan real estate

Housing and condominium developers in Thailand and escrow agreements

Off plan or pre-construction or under construction real estate developments in Thailand are usually financed by the buyers who pay deposits and price installments during the construction directly to the developer who uses these payments to finance the housing or apartment project. In the event of default or bankruptcy of the developer the buyers could lose all monies paid unless his payments were deposited in an escrow account held by a third party

Condominium Conveyance Tax

Ownership transfer tax and fees

Total transfer fees and taxes involved for the buyer with the transfer of ownership of a condo in Thailand could range from a relatively small amount to a more substantial amount depending on the agreement with the seller. In a sale and purchase of a newly built apartment unit consumer protection laws specify that the developer may only ask up to half of the 2% transfer fees from the buyer, all other taxes, fees and costs involved with ownership registration on the name of the buyer must be born by the developer.

Investing in real estate in Thailand

By foreign nationals

Foreigners can own an apartment in a condominium in Thailand, but ownership of land or land and house is limited to only Thai nationals. It is under the Thailand Land Code Act not possible for foreigners to obtain outright ownership over land and house in Thailand. Foreign land ownership limitations apply but many foreign investors have been duped into believing that they can own land in their own name in Thailand.

What is a right of usufruct in Thailand

The essence of a right of usufruct (section 1417) is that it transfers the rights of possession, use, enjoyment and management of an immovable property from the owner to the usufructuary (the person granted the right of usufruct). It gives certain strong rights but also obligations that are normally associated with ownership of the property (right of management and obtaining benefits from the property). Usufruct is governed by sections 1417 to 1428 civil and commercial code.