Becoming a Property Owner in Thailand
Step 1: The Agency
Even though the use of an agency is not necessary in France, the search for a home in Thailand can be difficult without a good knowledge of the market and its specificities. The regulations on access to the property, the language and cultural barrier, and the difference in practices and uses are all reasons that justify the assistance of a real estate agency. In addition, only the seller pays the agency commission. There are many reasons that justify the assistance of a real estate agency.
Step 2: The Research
Once you have more or less defined your real estate goals, research is a major step in your buyer journey. It is indeed during this step that you will refine your criteria and other elements that will be decisive in your choice.
Step 3: The Visits
Our agents are there for you and will make sure to accommodate you best by grouping a maximum number of visits on the same day or week.
Our tips for a successful visit: Once inside the property, remember to check the orientation of the property, the quality of materials (sound and thermal insulation), the operation of equipment (air conditioning, faucets, etc.) and the quality of furniture in the case of furnished housing.
Step 4: Negotiation
Our agents are experienced in the trading methods in Thailand. Knowing that 90% of the owners are Thai, the negotiation is very different from what one can know in Europe for example; the cultural gap can make things difficult! The acceptance of the Offer then leads to the signing of the sales agreement.
Step 5: The Sales Agreement
The sales agreement takes the form of a sales contract in which the seller agrees to sell his property to the buyer in exchange for payment of a deposit equal to 5 to 10% of the value of the property. It is during this stage that the date of transfer of ownership to the cadastre will be defined.
The sales contract confirms your commitment to the seller. Also, in the event that the transaction fails, the deposit made will remain with the seller, unless a clause was provided and accepted by both parties. Conversely, if the seller withdraws for a reason not provided for in the clauses of the sales agreement, the seller must compensate the buyer for an amount equal to 2 times the amount of the deposit.
For more information on this subject, we invite you to read our article on the legal aspects here.
Step 6: Financing
The transfer of funds remains the most common financing option in Thailand real estate for foreign buyers.
The home loan is the least common financing option in Thailand real estate for foreigners. It’s quite difficult for a foreigner to obtain a loan in Thailand because the conditions of obtaining it are very restrictive and the contribution requested can represent up to 50% of the loan.
Step 7: The Documents
We will take care of all the necessary steps and procedures with the Land Department, the Thai equivalent of the Cadastre. They will validate any transaction. The average duration of a real estate transaction is about 1 month, when in France it lasts about 3 to 4 months.
Step 8: The Sale
The final step of your journey, signing the deed of sale, marks the culmination of your project and makes you a full owner. This stage occurs in the Thai cadastre, when in France it happens at the notary.
You can find a more detailed version of this article on the website of our real estate agency by clicking here.