Stages of online real estate purchase in Thailand. How to avoid an unpleasant surprise after the conclusion of the transaction?

Stages of online real estate purchase in Thailand. How to avoid an unpleasant surprise after the conclusion of the transaction?

In 2023, anyone can find real estate in Thailand for sale even from outside the Kingdom. In this article, you are going to find out how an online purchase of housing goes: from choosing a unit to obtaining ownership documents.

Content:

Stages of online purchase

The main stages of purchasing an apartment or villa in Thailand remotely:

  • Selection of a residential facility
  • View housing
  • Checking the seller
  • Signing of documents
  • Payment
  • Property registration

Stages of online real estate purchase in Thailand. How to avoid an unpleasant surprise after the conclusion of the transaction?

Unit selection

The choice of a housing unit for viewing in most cases has always been remote: the buyer selects from the catalog options that satisfy them in terms of the cost, location, number of rooms, area and other parameters. The next step is to view the selected apartments.

Online viewing

Real estate that has not yet been commissioned can only be viewed virtually: luckily, video tours in 3D format are created by almost all construction organisations in Thailand.

If the housing is ready for sale, then you can have a look at it, even from another country.

Virtual viewing is carried out using:

  • A panoramic image taken by a 3D camera. The picture is similar to the photos in Google Maps.
  • A pre-prepared video. It is usually done by a real estate agent or the owner of the residential facility.
  • Live broadcast. When the buyer examines the housing via video link in real time, as if he himself is in the room. Usually, by agreement with the buyer, a realtor or the homeowner makes a video call in one of the messengers.

Remote viewing makes it possible to get a completely adequate idea of the condition of the new apartments. Meanwhile, studying Google maps helps to understand which area the residential complex is located in.

However, it is usually hard to get a full idea of secondary housing with the help of a video survey. Cracks, leaks and other malfunctions of the residential facility are not visible in the photo or video. Moreover, it is impossible to assess the humidity level inside the premises, the presence of an unpleasant smell, etc.

When buying remotely, it is impossible to communicate with neighbours who might be kind enough to tell more about the hidden shortcomings of the old house, the entrance and so on. As real estate agents say, if you choose to view secondary housing remotely, then you might as well be very disappointed after purchasing the property. Therefore, before transferring money for secondary housing, buyers are highly recommended to visit the selected house or apartment in person.

Reservation of a residential facility

After choosing an apartment, a reservation agreement is signed. After signing the agreement, the buyer must pay about 30% of the cost of the unit.

After that, the contract of sale will have to be signed within 14 days. Meanwhile, if purchasing housing remotely, this period can be extended up to 30 days by the agreement between the parties.

Stages of online real estate purchase in Thailand. How to avoid an unpleasant surprise after the conclusion of the transaction?

Checking the seller

At this step, it is necessary to check the seller's title documents. When purchasing primary housing, a developer or realtor will send necessary documents via the Internet, for example, by e-mail.

It is not easy to check the documents of the owner of secondary real estate in Thailand: an identity document and a certificate of ownership might not be enough. It is important to establish whether the apartments were bought with a mortgage and whether those have been fully paid. A lawyer will help you find out.

Mortgage

You can buy an apartment in Thailand on credit. It is also possible to collect a package of documents, send them to a credit institution and get an answer remotely.

Signing of documents

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

The agreement must specify the obligations of the buyer and seller. In addition, the document must contain a description of the apartment, townhouse or villa, the cost of the residential facility and other nuances.

Signing contracts and agreements may seem difficult for a foreign buyer. However, you should not worry. The lawyer will send the documents that need to be printed, signed, scanned and sent back. Online purchases of apartments and houses in Thailand are well regulated.

Payment

To make a payment, you need to contact a representative of your bank and make sure that the money transfer to Thailand is possible.

Keep in mind that funds are always transferred to a credit institution in Thailand in a foreign currency. The process for an online purchase is the same as for an offline transaction.

After transferring the money, you are to get a certificate of a completed transaction in a foreign currency. The document will confirm the transfer of funds by the buyer to the seller.

Property registration

It is necessary to register the ownership right in the Land Department, as well as in the municipality of the locality where the property is located.

The buyer and seller must meet with the specialists of the institution and sign an agreement. Representatives of the parties will also be able to do this if the transaction is carried out remotely. After registration, the seller and the buyer pay taxes, and a document of ownership is issued on the name of the buyer.

Documents confirming ownership and registration can be obtained later independently or through another person, who will issue a notarised power of attorney.

Stages of online real estate purchase in Thailand. How to avoid an unpleasant surprise after the conclusion of the transaction?

Transaction security: what to pay attention to

When buying a house in Thailand, many buyers, who are unaware of the local laws and regulations, sometimes get confused and lose sight of important points. How not to regret making a deal?

It must be remembered that foreign citizens are not allowed to own land in Thailand. A citizen of another country has the right only to rent a land plot in the Kingdom.

In addition, foreigners can own no more than 49% of the property in a condominium. When purchasing apartments from a developer, the quota will be met, but if the residential property is sold by an individual, the seller may not be aware of the exact quota in the residential complex. In this case, the information on the amount should be clarified with the management company in advance.

  • It is necessary to find out at what rate the tenants of the house are paid for the use of water and electricity. Those rates may differ in residential complexes of different classes. Otherwise, high cost of utilities may turn out to be an unpleasant surprise in the future.
  • You need to find out if there are any arrears on utility bills: whether electricity and water bills have been paid or whether funds have been deposited into the residential complex fund. When purchasing an actual house, it is necessary to know whether the building is registered on the land plot.
  • If you are considering renting out the purchased apartments, it is better to check in advance with the management company for how long it is allowed to do so. In some condominiums, owners have the right to rent an apartment only for a period of one year or more.
  • If you are planning on living in a purchased apartment with a pet, then before buying, you should ask if it is allowed. The rules of many residential complexes in Thailand prohibit keeping animals in the house.

A potential buyer have to keep in mind that apartments and villas in Thailand, sold at a reduced cost, may have hidden malfunctions or unpleasant surprises. This is especially true for secondary housing units. You also need to make sure that there are no sources of constant noise or bad smell near the house, as well as whether there is a parking lot near the residential complex.

Real estate agents and lawyers will help with the documents and verification. However, the buyer must be aware of what he is signing themselves.

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