The property is shown by appointment only and will not be shown to people who happen by. You will need your passport or National ID card to view the property. Please call ahead for appointment. Many thanks.
How to Buy: It is customary in Thailand for payment to be made prior to signing and registration of new Deed (Chanote) which occurs at the Local Land Office. Typically this is done on the same morning. Funds are usually delivered via a Bank Cashiers Check (Not a Buyer check), direct deposit of funds into Sellers Thailand bank account, or CASH.
Who Can Buy: With various exceptions, only Thai citizens can own property in an individual name. This means that a foreigner married to a Thai will have no problem placing the property in the wife’s (or Thai husband’s) name. Retired or otherwise single foreigners cannot purchase in their own individual name, and most purchase through a Thai company owned by them. So, in summary, if you are a foreigner not married to a Thai, you have these options:
1. Purchase via a Corporation: Many foreigners use an attorney to set up a corporation and buy in the corporate name. If this is the case for you, the Sellers cannot deal seriously with you until your corporation is formed. Best to use a Bangkok or Phuket service for this as prices are better and they know what they are doing.
2. Take Possession via Longterm Lease: This is another common procedure in which an attorney can be very helpful. Essentially a 30 year lease is created, renewable for another 30 years, and recorded among the Land Records at the local Land Office. All kinds of protective clauses are added including the right to sell the property via automatic conversion to freehold.
3. Land Installment Contract with Nominal Lease: With this procedure, Buyer receives a Contract For Sale. And everything occurs except that the Land Office is not notified and the property remains titled in the Thai Seller. The Buyer is fully protected by a Paid in Full Lease ensuring full possession of the property to the Buyer. Additional protections can include a mortgage recorded on the property in favor of the Buyer, as well as a Power of Attorney from Seller to anyone of Buyer’s choosing, ensuring that if Buyer wants to sell in the future, the Buyer can control the entire process.
4. In short, if you would like to live in Thailand and buy property, this can be done. The Thai Elite Easy Pass Visa, which is essentially a long term multi-entry visa, is also a great way to solve any visa problem as there is no age requirements, travel in and out of the country is unlimited, and there are many other conveniences.
Deed Form: The title to the property is in the form of Chanote, which is the highest and best level of Deed for real estate in Thailand, and passes all rights of use and ownership to the Buyer upon signing and registration at the Land Office.
Use of Attorney. An attorney would certainly be helpful to the Buyer and provide some level of comfort in the examination of the Deed, making sure there are no recorded liens and mortgages against the property (there are none), and just in general approving the procedure and holding your hand. However, in Thailand, attorneys do NOT act as Escrow Agents, and hence funds must be paid directly to the Seller. If the Buyer deposits purchase funds with a Thailand attorney, this is at your risk, in that there will be no transfer until Seller is in receipt of the full purchase price. Some Buyers use a Power of Attorney and avoid meeting directly at the Land Office. This is customary for Buyers out of the area, and is up to the individual buyer.
Transfer Fees: Various types of fees relating to transfer are assessed at the Land Office, usually based upon the Land Office assessed valuation of the property. These fees include not only the Transfer Fee of 2%, but a Stamp Duty, as well as Business Tax, all of which fees amount to 5% of sale price (which usually means 5% times the Land Office assessed valuation of the property which can be lower than actual sales cost). The law requires that the 5% transfer fees be based on the assessed value or actual sale value, whichever is higher, but in actuality, the amount is based on assessed value of land because there is no tax imposed on furnishings, moveable property, equipment, electric service poles, water well and the like. Although subject to negotiation, it is customary in Thailand for the parties to share the cost of all transfer fees equally, and in any event, that is what is required in this case.
Legal Owner: The property is occupied by Walter Drake and Acharaporn Udomsri (Husband and Wife). Acharaporn uses her American name, Sara, but her ID papers and passport are in the name Acharaporn Udomsri, as is the Deed (Chanote). At the Land Office, the Seller is required to prove her identity to the officials, and the Buyer as well must prove identity before the transfer can be approved.
Contract: A relatively informal contract form is used. Down payment is the subject of negotiation. What is different from Western countries is that there is no efficient court system or usual banking system. It is a cash payment society. The Buyer is free to present their own Contract; or alternatively, the Seller can draft a 1-2 page Contract.
Possession: Possession of the property is not given until full payment is received. If a substantial unrefundable deposit is made, possession can be given on the day of closing (settlement). Otherwise, the Buyer must recognise that the Sellers may need a few days to collect and pack their belongings, make provisions for their dog, and exit the property in a reasonable manner. The Buyer also will need a few days of instruction by the Sellers as to how to use equipment, location of water and electric lines, and review of owners manuals for appliances.
If you view and like the property, further details on the transfer process will be given. Also, feel free to contact us with any questions you may have: Click on CONTACT page above.