Purchase and registration of established real estate
All the nuances and features
Every year, thousands of foreign citizens become happy owners of established real estate in Phuket. Thailand is a country with a stable economy, wonderful climate and excellent ecology. Buying an apartment in Phuket is not only a cherished dream to live by the sea, but also a profitable investment.
Huge demand leads to the rising of real estate prices on the island. Having bought an apartment today, you can resell it profitably in a couple of years or just rent it out, except the period when you need to stay there during your own vacation.
To avoid surprises when buying an established housing, you need to learn about some nuances of its acquisition.
Features of buying a home in the secondary market of Thailand
So, you have made a choice of an established real estate, what are your next steps?
Each stage of the transaction of purchase and sale of housing in Phuket must be formalized legally. To do this, you will need the help of a lawyer and translator, or a specialist from a real estate agency who will take care of the collection and execution of all documents. The agency can also help you find the object which suits your requirements.
First of all, the seller needs to request a copy of Chanot and the passport of the current owner of the property. Chanot in Thailand is called a certificate of registration for a residential property. Next, you need by yourself or with the help of a realtor (which is much easier, then you will understand why) to find out some facts.
Does the person who represents the seller really own the property? All people who ever owned a house are indicated on the back side of Chanot and the seller must be the last owner. All inscriptions in Chanot are made in Thai, so it is hard to read it without the help of an agent or translator.
In addition to information about the owner, all data about the legal obligations is also included. For example, you can find out if the housing is on lease or a bank deposit.
An important point is to determine the market value of housing correctly because the amount of fees and charges to the Thai Land Department depends on it, as well as the fee for reissuance. In 2016, the registration a new owner of housing in Thailand costed 6.3% of the market value of the property. By agreement, the seller can pay most of the property taxes but it is necessary to draw up a contract of sale.
Proper execution of the contract of sale is the most important moment in the transaction. The contract states all the conditions of sale, includes all the nuances of the transaction and how the buyer pays the seller. Very often the buyer makes a deposit. If the transaction fails for some reason, the deposit is returned to the payer. The whole sum is paid after registration of the contract at the land property department. You should transfer the necessary amount to your bank account in advance. It will take about a week to convert funds and to receive a certificate with the admission to invest in the Thai economy.
If the buyer purchases housing to a third party, he must have a notarized power of attorney. The presence of the final purchaser of the property in the sale is not necessary. A realtor, his friend or relative can represent a foreign citizen. Therefore, it is so popular to purchase real estate in Phuket remotely.
The next stage is registration at the Land Department, when the buyer and seller have collected all the necessary documentation, duties and taxes have been paid. The Department is preparing a new act of sale in Thai, which is issued to the buyer. The previous act is declared invalid. The act indicates the estimated value of the property.
After signing the contract, an employee of the Land Department transfers Chanot to you, which confirms your ownership. The seller must give the house book to the new owner, with all paid utility bills and taxes. After this moment, the foreigner becomes the full owner of real estate in the Kingdom of Thailand.
As you can see, buying an apartment in Phuket on your own, without the help of specialists, is quite difficult. To do this, you will need knowledge of local law and Thai language, even if the seller is not the Thai. All original documents are issued in Thai. Employees of the Real Estate Gallery in Phuket are ready to provide professional assistance in all issues related to the buying of apartments or houses.
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