How to Buy a House in Phuket
In case the house is ready for occupancy
We are ready to be of service to you in every stage of the transaction.
We start by helping you find a suitable option and by advising you in pre-delivery inspection (in which we assess the true state of the property at the time of purchase) before signing the acceptance of transfer and registering the transfer of ownership.
After selecting a property, to guarantee his/her intention to purchase the chosen real estate, the buyer makes a deposit, which serves as a reservation payment.
As a rule, the preparation and signing of the contract takes place within a month after making the deposit.
After that, the parties draw up a contract, which should include:
- A description of the Property (location, surrounding area and other characteristics),
- The total price of the Property,
- Payment Terms and Conditions,
- Procedure and conditions for payment of the registration of the Transfer Of Ownership,
- The rights and obligations of the Parties,
- Responsibility of the Parties,
- Terms and procedure for termination of the contract, force majeure, etc.,
- Additional conditions,
- Contact details of the parties.
If, in formulating the contract, the parties disagree on some of the contract’s terms, a Supplemental Agreement is usually sufficient to sort out the disagreements. New conditions can be attached to the main contract.
After signing the contract, normally the buyer pays around 20-30% of the total Property cost. The down payment plan may vary, depending on the conditions specified in the agreement.
IMPORTANT: All payments should be recorded in the relevant legal documents!
What is the difference between the purchase and sale of existing real estate and of an off-plan property or property under construction?
The most important difference, when dealing with a private person vs. a developer company, is the absence of down payment and instalment plans.
However, it is not unusual for a buyer not to have enough funds available to cover the transaction in full. If this is the case, there is no need to worry, because this can always be negotiated case by case with the property owner.
You may be allowed to pay by an instalment plan. However, this is usually for no more than a year and you will only receive the proof of ownership after paying the full value of the property.
If the property is purchased from the developer company
The buyer makes a first deposit. The size of the deposit depends on the total amount of the transaction (typically 30-50% of the total cost).
The developer usually provides a standard contract, which can be amended with the necessary adjustments once you have reached agreement on what should be included.
Contracts are made in English. You have the right to request a translation of the agreement. But the translation cannot be used for legal purposes.
When purchasing Real Estate, prior to signing a contract, make sure you have carefully checked everything: contract, additional papers provided by the developer (Land Title Certificate, Building permit, etc.) and other related documents.
After signing the contract the future owner transfers 20-30% of the total value of the property to the seller. Then the buyer agrees to 3 additional payments of equal amounts.
Final payment occurs after the completion of construction, before receiving the keys and registration address.
IMPORTANT:All payments should be recorded in the relevant legal documents! ## Completion of the transaction
After settling all questions related to transactions and the final settlement between the Buyer and the Seller, the new owner is given the title document.
What are the nuances of payment and money transfer in Thailand?
* If you transfer money between banks in Thailand, you will need to obtain confirmation from the bank that the money is being spent for the acquisition of property - a Foreign Exchange Transaction certificate (FET). * If you transfer money from a foreign bank to Thailand, the seller can request the certificate from the local bank. * If you are going to do the transaction in cash (currency or traveler’s checks), it is best to open a local bank account in your own name, exchange currency or traveler’s checks to Thai baht and ask for the FET certificate. However, there is a caveat. Not every bank can open accounts for foreigners without a long-term visa or work permit. But again there is no need to worry; we will help you to resolve this issue.
What are the additional costs when buying property in Phuket?
All real estate transactions are recorded at the Land Department. This is where most of the associated additional costs will be incurred. Furthermore, the additional charges will depend on the method of acquisition of real estate and other factors.
Generally speaking, expect to pay:
- Registration with the Land Department.
- Registration for the Transfer of Ownership.
- Contribution to the Sinking Fund or Major Repair Fund when buying a new property.
- Registration of the company if the transaction is issued to a legal entity.
Our services are free for the client. Our commission is paid by the seller.