Stages of Online Real Estate Purchase in Thailand: How to Avoid Unpleasant Surprises After Closing the Deal

Stages of Online Real Estate Purchase in Thailand: How to Avoid Unpleasant Surprises After Closing the Deal

In 2023, anyone can purchase real estate in Thailand even without being physically present in the country. In this article, you will learn about the process of buying property online, from selecting a unit to obtaining the ownership documents.

CONTENT:

• Stages of Online Purchase
• Unit Selection
• Online Viewing
• Reserving a Property
• Verifying the Seller
• Mortgage
• Signing the Documents
• Payment
• Property Registration
• Transaction Security: What to Watch Out For

STAGES OF ONLINE PURCHASE

The key stages of buying an apartment or villa in Thailand remotely include:

• Selecting a property
• Viewing the property
• Verifying the seller
• Signing the documents
• Payment
• Property registration

Unit Selection

The process of selecting a housing unit for viewing is often done remotely: buyers choose from catalogs, focusing on price, location, number of rooms, size, and other criteria. The next step is to view the chosen apartment.

Online Viewing

If the property is still under construction, it can only be viewed virtually. Fortunately, almost all construction companies in Thailand offer 3D video tours.

For properties ready for sale, you can still view them remotely, even from another country.

Virtual viewings can be conducted through:

• Panoramic images taken with a 3D camera, similar to Google Maps photos.
• Pre-recorded videos made by the real estate agent or the property owner.
• Live broadcasts, where the buyer views the property via video call in real time. A realtor or the owner conducts the video tour through a messaging app.

Remote viewing gives buyers a good understanding of the condition of newly built apartments. Additionally, using Google Maps can help buyers assess the surrounding area.

However, it can be difficult to fully assess secondary properties through video. Cracks, leaks, and other defects may not be visible in the photos or videos. Moreover, it’s impossible to gauge factors like humidity, unpleasant odors, or other issues.

When buying remotely, it’s also impossible to talk to neighbors who could provide insights into any hidden problems with the house or apartment. Real estate agents caution that if you choose to view secondary properties remotely, you risk being disappointed after the purchase. Therefore, it's highly recommended that buyers visit the property in person before transferring money for a secondary home.

Reserving a Property

After selecting an apartment, a reservation agreement is signed. At this stage, the buyer is required to pay around 30% of the property’s price.

Afterward, the sale contract must be signed within 14 days. However, when purchasing remotely, this period can be extended to 30 days by mutual agreement between the parties.

Checking the Seller

At this stage, it is essential to verify the seller’s ownership documents. For new properties, the developer or realtor will typically send the required documents via the Internet, often by email.

Checking the ownership documents for secondary properties in Thailand is more complex. An identity document and ownership certificate may not be sufficient. It’s crucial to determine whether the property was bought using a mortgage and whether it has been fully paid off. A lawyer can assist in this process.

Mortgage

It is possible to buy an apartment in Thailand on credit. You can collect the necessary documents, send them to a credit institution, and receive an answer remotely.

Signing of Documents

The lawyer will send the buyer a draft version of the sale contract in both English and Thai.

The contract should clearly outline the responsibilities of both the buyer and the seller. It must also include a description of the property, such as an apartment, townhouse, or villa, along with its cost and other specific details.

Signing contracts and agreements may seem complicated for foreign buyers, but there’s no need to worry. The lawyer will provide the necessary documents, which can be printed, signed, scanned, and returned. Online property purchases in Thailand are well-regulated.

Payment

To make the payment, contact your bank to ensure the transfer of funds to Thailand is possible.

Funds are always transferred to a Thai financial institution in foreign currency. The process for an online purchase is the same as for an offline transaction.

After transferring the funds, you will receive a certificate confirming the transaction was completed in foreign currency. This document will verify that the funds were transferred from the buyer to the seller.

Property Registration

The ownership of the property must be registered at the Land Department and the municipality where the property is located.

The buyer and seller need to meet with the officials and sign the necessary agreements. If the transaction is conducted remotely, representatives of both parties can handle this. After registration, taxes are paid, and the ownership document is issued in the buyer’s name.

Ownership documents can be collected later either personally or through a representative with a notarized power of attorney.

TRANSACTION SECURITY: What to Pay Attention To

When purchasing a house in Thailand, foreign buyers may overlook important legal aspects. How can you avoid regretting your decision?

First, remember that foreign citizens cannot own land in Thailand. Foreigners are only allowed to lease land.

Additionally, foreigners can own no more than 49% of the units in a condominium. When purchasing from a developer, this quota is typically met. However, when buying from an individual, the seller may not know the current quota status. It’s essential to check this with the property management company in advance.

You should also determine the cost of utilities, such as water and electricity. Rates can vary depending on the residential complex. Unexpectedly high utility bills could be an unpleasant surprise.

Check for any outstanding utility payments, such as unpaid electricity or water bills, or any unpaid contributions to the complex’s maintenance fund. If buying a house, confirm that the building is properly registered on the land.

If you intend to rent out your property, verify the minimum rental period allowed by the management company. Some condominiums only permit rentals for one year or more.

If you plan to live with a pet, ensure that pets are allowed. Many residential complexes in Thailand prohibit keeping animals.

Finally, beware of properties sold at a reduced price, especially secondary properties. They may have hidden defects or undesirable issues. Ensure there are no sources of constant noise or unpleasant odors nearby, and confirm that there is adequate parking.

Real estate agents and lawyers can assist with documents and verification, but the buyer should always fully understand what they are signing.