Real estate transactions in Thailand involve several steps that must be followed in order to ensure compliance with the country’s laws and regulations. These steps include obtaining the necessary approvals and permits, conducting due diligence, and completing the legal and financial aspects of the transaction.
Obtaining Approvals and Permits: Before a real estate transaction can take place, certain approvals and permits must be obtained. This includes obtaining a Foreign Business License if the property is being purchased by a foreign national, and obtaining approval from the Land Department for the transfer of ownership.
Due Diligence: Before a transaction is completed, it is important to conduct due diligence on the property. This includes verifying the property’s ownership, checking for any outstanding debts or liens on the property, and ensuring that the property is free of any encumbrances.
Preparing the Sale and Purchase Agreement: Once the due diligence has been completed and the necessary approvals and permits have been obtained, a Sale and Purchase Agreement must be prepared. This agreement should be reviewed by a lawyer to ensure that it is legally binding and enforceable.
Obtaining the Transfer of Ownership: After the Sale and Purchase Agreement has been signed, the transfer of ownership must be registered with the Land Department. This process involves obtaining a new title deed for the property and paying the necessary taxes and fees.
Completing the Financial Transaction: The final step in a real estate transaction is to complete the financial transaction. This includes paying the purchase price, as well as any taxes and fees associated with the transaction. It is important to ensure that all the financial transactions are conducted through a reputable bank or financial institution.
After Sale Process : After the sale, the buyer and the seller will have to go to the land department to transfer the ownership and get the new title deed issued on the buyer’s name. This process usually takes around 2 to 4 weeks.
It is important to note that real estate transactions in Thailand can be complex and time-consuming. Having a lawyer to guide you through the process can ensure that all the legal and financial aspects of the transaction are handled correctly and in compliance with the country’s laws and regulations. It’s also important to note that many legal documents in Thailand are written in Thai