shutterstock_1660691818x

Property Title Transfer in Thailand

Property Title Transfer in Thailand can be a complicated process and there are specific procedures and requirements that must be followed. Obtaining the services of a qualified lawyer or a real estate agent who is knowledgeable about Thai land titles and procedures is highly recommended.

The buyer and seller must go together to the Land Department with supporting documents such as the title deed (Chanote) and sales and purchase agreement. The buyer is also responsible for paying a number of fees and taxes.

Legal Requirements

The property title transfer procedure in Thailand can vary based on the type of property and region. To ensure a smooth and legally compliant process, it’s recommended that buyers consult with legal professionals or experts familiar with Thai property law to guide them through the process.

Due diligence is a crucial step in the transfer process, which should include reviewing the title deed, land surveys, and ownership history of the property to ensure it’s free of any liens or disputes. It’s also a good idea to make arrangements for the transfer of utilities, such as water and electricity, into the buyer’s name to guarantee continuity of service.

To complete the process, both the buyer and seller must present themselves at the Land Department with all required documents. If either party is unable to attend in person, they can sign a power of attorney and choose someone else to represent them (this can be your Keller Henson team or a local property lawyer). You will then need to pay the appropriate transfer fees and taxes at the Land Office.

Due Diligence

Due diligence involves a thorough investigation of specific facts and details about a property prior to purchase. This includes a review of the land title deed and its history, possessors, and registered encumbrances; checking that the company is legally registered and that the ownership share is properly recorded; a survey of the land size, shape and orientation (to ensure that the land title accurately represents the offered property); and zoning law reviews concerning permitted uses of the property.

If the property consists of land and house or condominium, the seller should be able to provide a certified copy of the office government issued ownership’s title deed front and back sides and a previous land office sale agreement (where applicable). If you are purchasing off plan, the developer should be able to show you a complete building permit and a detailed blueprint. You will also need to check that the zoning laws have been adhered to.

Transfer Fees and Taxes

In Thailand, transfer fees and taxes are imposed upon the sale and transfer of real property such as condominium apartment, land or house. They include a government transfer fee, specific business tax (SBT), and income withholding tax.

Specific business tax is 3.3% of the government appraised value or actual sales price whichever is higher. In this example, if the sale price is 800,000 baht, specific business tax would be 16,000 baht.

Buyers and sellers must pay these fees and taxes at the land office when they are transferring ownership of the property. If the seller or buyer cannot physically be present, they can make an Ownership Transfer Power of Attorney and appoint someone to go to the land office on their behalf. It is important that the power of attorney follows strict standards that are regulated by the Land Office. This ensures that the process is completed correctly and that the document will be accepted by the department.

Registration

Throughout the process, legal professionals should be utilized to ensure that all necessary paperwork is complete. This includes performing extensive due diligence, verifying ownership history, examining the land survey records and checking for any liens or other issues that would prevent a transfer. It’s also important to make arrangements for transferring utilities and services into the buyer’s name at the land office.

Property law and procedures vary based on region and individual circumstance; therefore, consulting with legal professionals specializing in Thai real estate is advisable. They will be able to offer individualized guidance and assistance.

Nor Sor 3 Gor is the most secure form of land title document in Thailand. It grants the owner full ownership rights and can be sold, transferred, assigned, leased, mortgaged or passed on to heirs. This type of land title can be upgraded to a Chanote document. Most other land titles in Thailand are SK1 documents, which do not grant true ownership but only a right of possession with inaccurate surveyed boundaries.

sebastian-herrmann-NbtIDoFKGO8-unsplash

Sales Contract Review in Thailand

A sales contract is a crucial document in Thailand’s vibrant real estate market, providing clarity, protection, and legal compliance for buyers and sellers alike. A professional review of the contract can help buyers avoid legal ambiguities and hidden clauses, reduce liability, and choose the right ownership structure for their purchase.

Legality

A sales contract is a legally binding document that lists the basic rights and obligations of both parties. It is usually written in Thai or English and should include a detailed description of the property along with penalties for breaching its terms. A thorough contract review is a must for buyers to protect themselves from legal pitfalls and hidden clauses that can result in costly litigation down the road. It also helps them decide on the best ownership structure for their purchase.

A legal expert who specializes in contract review can help clarify any ambiguity, reduce the liability of the seller, and strengthen their position in case of future disputes. They can also ensure that the information mentioned in the contract matches up with tax records, title deeds, and government permits. They can also check whether the land and property meet zoning regulations and environmental requirements. This due diligence service is essential for foreign buyers to avoid costly mistakes and receive a fair deal.

Clarity

In any property transaction, a sales contract lays out all the terms and conditions of a sale. It’s a legal document that binds the buyer and seller, and it must be carefully reviewed by a lawyer before signing. The review process will clarify ambiguity and prevent hidden clauses that could lead to future legal disputes. It will also ensure that the information in the sales contract matches with the title deed and government permits.

The contract review process is especially important for foreign buyers in Thailand. A lawyer will examine the contract and point out any issues that need to be addressed. They will also check that the land and buildings on it comply with zoning regulations and environmental laws. This will help ensure that the property is a good investment for the buyer. The review will also help avoid common legal pitfalls that can arise when buying a property in Thailand. It will protect the buyer’s interests and reduce liability on both sides of the transaction.

Liability

A Sales Contract Review is a mandatory procedure that strengthens your position, reduces liability, and prevents legal ambiguities when purchasing property in Thailand. A lawyer will review your contract to ensure that it doesn’t contain hidden clauses that could lead to future disputes and to make sure that the property information matches government permits and zoning regulations.

A thorough contract review will help you avoid misunderstandings and legal disputes in the future, which will save you money and time. It will also ensure that your purchase complies with Thai law and that you receive a fair deal.

A skilled attorney can review your sales contract and make changes to it if necessary. He or she can also check that the property information in your contract matches the tax records, title deed, and government permits to ensure that you are getting a genuine deal. In addition, a lawyer can advise you on the best ownership structure to protect your interests.

Negotiation

A sales contract review is a due diligence service that prevents legal ambiguity, reduces liability on both sides of the deal, and strengthens your position in the event of a dispute. It also helps you choose the best ownership structure for your property and ensures that the information in your contract matches the title deed and government regulations.

A legal practitioner conducting the contract review should use other contracts already in existence as reference, and make comparisons to discover what needs to be included or changed in your contract. The contract reviewer for the seller should do the same.

A thorough contract review can save you time and money in the long run. It can help you avoid costly lawsuits and ensure that the property you are purchasing complies with Thai law. It can also provide peace of mind and protect you from a bad investment. This is especially important for foreign buyers, who may not understand the language or laws of Thailand.

r-architecture-2gDwlIim3Uw-unsplash

Property Due Diligence in Thailand

Due Diligence is a general term used to describe the research and analysis carried out by a reasonable person in preparation for a business investment. This means taking extra precautions to avoid risks and liabilities.

Property Due Diligence in Thailand involves a physical inspection of the land as well as examining all legal documents involved. This includes checking the land title deed and evaluating building construction permits. It also checks for usufructs and servitudes such as a gas pipeline servicetude.

Visual Inspection

The property buyer needs to know what they are buying, and this is usually done by performing a visual inspection of the land or property. This involves checking the copies of the documents attached to the land or property and conducting a land title search at the land office.

A reliable charted surveyor will also check for land encroachment and other related issues. This is especially important for land or properties that have been sold off plan. For instance, the developers might have registered a servitude for a gas pipeline or power cables across the land. This needs to be checked in order to avoid any future complications such as having to pay for a liability insurance cover.

Moreover, the person conducting the due diligence should also conduct a legal background check on the developer such as reviewing the company registration date and shared capital; changes in the company name within three years; registered rights against the land; land taxes paid or to be paid and earlier transfer dates, etc.

Title Search

When buying land, houses or condominiums, it is important to check the ownership title deed and government permits. A reputable property lawyer in Thailand can assist you with this due diligence process. They will verify the seller’s identity and review their past transactions. This ensures that the seller has a valid and clear title to sell you the property and that they are not hiding any debts or other liens on their land.

They will also check the building permit and zoning laws. They can also help you to assess the developer’s background, especially if you are planning to buy off plan. There are many fraudulent dealers and developers out there that will take your deposit and then not build the project.

In addition, they will check whether the development encroaches on government land or is in an area that may be subject to future expropriation. They will also verify that the contract drafted by the seller is correct and free of any hidden costs or drawbacks.

Visit the Land Office

A visit to the land office is an important part of property due diligence in Thailand. This step ensures that the land description in the title deed matches the record held by the local land office. It also checks that the seller owns the land and has a legal right to sell it. It also examines any encumbrances on the land such as usufructs and servitudes (e.g. gas pipeline servitude).

It will also verify that the property is within zoning laws and has a building permit. If it does not, the buyer could be subject to fines from the local government. This is a key part of lowering the risk of an investment in Thailand. The comprehensive checks done in property due diligence can save investors from being scammed and losing money. They can also avoid expensive and time consuming litigation down the road. It is a process that will protect an investor’s long term interests in their place in paradise.

Contract Review

When investing in real estate, due diligence is an essential step. This involves a thorough inspection of the property as well as investigating all legal documents associated with the sale. Due diligence also includes evaluating the seller’s reputation and financial statements.

This is especially important in Thailand, where land ownership is complicated. In addition to a physical inspection, property due diligence requires researching the title deed and checking for liens or other attachments on the property. It’s advisable to hire a lawyer who is familiar with Thai property laws.

Besides the title deed, you should also check the initial environmental examination (IEE) and building construction permits. If you’re buying off plan, make sure the developer has enough money to complete the project before you make a payment. Otherwise, you could find yourself in a difficult situation. Acting with due diligence can save you from unnecessary legal problems.