The Definitions of Buying Condominium in Thailand
Buying a condominium, is an option available to foreigners. The only restrictions on purchasing a condominium, are that the percentage of units sold to foreigners cannot exceed forty nine percent (49%) of the total number of units in the condominium block; and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a Tor Tor Sam. Purchases of condominiums by foreign individuals come under the jurisdiction of the Condominium Act B.E. 2535 (1992).
The owner of each condominium is issued with a certificate of unit ownership. The certificate also has a statement saying exactly what percentage of rights over the common areas of the building each owner has.
Tor Tor Sam (3): is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand. You must request a Tor Tor Sam from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium, and the Tor Tor Sam must specify that the remittance is solely for the purpose of purchasing a property - Code 5.22.
Title Deed: is the purest form of evidence that an individual owns a piece of land. Title Deeds are given only for areas of Thailand which are surveyed. For areas which are not surveyed, there are other documents for land possession such as evidence of the possession of the right to utilise the land or other interests in the land. These documents are called "Nor Sor Sam (3) and Nor Sor Sam (3) Kor". Unlike the Title Deeds, these Nor Sor documents are issued to show the possessors' exploitation of the land. Though these documents do not provide ownership rights, as do Title deeds, they can still be registered for transfer of the lands for which they are issued.
Mortgage Loan: Foreigners generally cannot mortgage properties in Thailand, however, most of the financial institutions in Thailand provide loans for real estate purchasing to Thais and Thai companies. Most real estate developers arrange for their customers to have a financing package from a financial institution. In most real estate development projects, a down payment can be made in installments from 10 to 24 months. After the down payment has been paid, the sale contract will be made and the balance amount is paid through the loan which is financed from a financial institution. The financial institution requires you to mortgage the property with it as collateral against the loan.
and Valuations: There are generally three different appraisal rates; the government rate, the appraisal company's rate and the rate which is considered to be fair market value of the land. Over the last few years all of these rates have begun to come closer together. With the East Coast team's wealth of experience in Thailand, they are well placed to assist you in valuing various properties proposals.
Sinking Fund: Major property related repairs, replacements, renewals and improvements. Includes all works to roofs, windows, buildings structure, gas boiler etc.
Maintenance Fees: Owners share both the use and the ongoing costs of upkeep of their unit and the common grounds of the condominium property. Yearly maintenance fees are set and directed by the owners at the condominium. Maintenance fees help maintain the quality and future value of the condominium property. They pay for onsite management, unit upkeep and refurbishing, applicable real estate taxes, and utilities and maintenance of the condominium’s common areas and amenities, such as pools, tennis courts and golf courses. The amount of the yearly maintenance fee typically depends on the size, location, and amenities of the condominium. Maintenance fees are assessed and paid monthly or annually by each vacation owner.
Transferring Fee: 2% each of total price for transfer fee to Land Department on the date of the transfer of the ownership of the condominium unit.