The questions owners and buyers ask us most, answered plainly, including the exceptions worth knowing before you commit. If yours is not here, ask us. It costs nothing.
The transfer fee is 2% of the Land Department appraised value. By custom the buyer and seller split it equally, but the law does not require that: the two sides may agree otherwise, and it should be stated in the sale agreement so it does not become an argument on the day.
Sell a houseA seller faces two charges. First, personal income tax, calculated from the appraised value and how many years the property was held. Second, either specific business tax at 3.3% of the sale price or appraised value, whichever is higher, or stamp duty at 0.5%. Specific business tax applies where the property has been held under five years and the seller has not been on the house registration for a full year; meet either condition and stamp duty applies instead, which is considerably cheaper.
Sell a houseBeyond the deposit, budget for your share of the transfer fee, customarily half of the 2%, a mortgage registration fee of 1% of the loan amount if you are borrowing, the bank valuation fee, fire insurance, and advance common fees for a condominium or a managed estate. Together these usually come to around 2 to 3% of the purchase price.
It is an annual tax payable for as long as you own the property. The rate depends on use: a main residence is exempt up to a threshold, agricultural land is taxed lightly, and vacant unused land is taxed at the highest rate, which rises the longer it is left idle. Arrears must be cleared before a transfer can go through.
Sell landThree things. Whether anything is payable up front, and who carries the listing and marketing costs. Whether the fee is agreed in writing before work starts, and if there is exclusivity, how long it runs and how it can be ended. And whether the valuation comes from prices that actually closed nearby, or from other people’s listings, which are only asking prices.
Sell a houseThe original title deed, ID card and house registration for every registered owner, a marriage or divorce certificate if relevant, spousal consent where the property is marital property, a power of attorney if an owner cannot attend, and a debt clearance letter from the juristic person where the property sits in a managed estate or is a condominium unit. The clearance letter needs requesting in advance, as it takes time to issue.
Sell a houseYes. In practice, on transfer day the buyer pays part of the price directly to the bank to redeem the mortgage, the bank releases the deed, and the transfer to the buyer is then registered. Whatever remains after redemption goes to the seller. The bank appointment has to be booked in advance for the same day, or the transfer cannot complete.
Sell a housePrice against what similar properties nearby actually sold for, not what other sellers are asking. Asking prices are usually above what the market pays. Starting well above the market tends to leave a property sitting, and the longer a listing has been up, the harder buyers negotiate when they finally do enquire.
Sell a houseMost banks work to a rule that total monthly repayments should not exceed roughly 40% of income. So a mortgage payment of 20,000 baht a month implies income of about 50,000 baht a month. If you already have other repayments, a car or credit cards, those count towards the same limit and push the income requirement higher.
Check three things before paying a deposit. That the seller is the registered owner with authority to sell, verified against the deed at the Land Office. Whether anything is registered against the title, such as a mortgage, a servitude or a freeze. And the actual condition of the structure, particularly leaks, cracks and the electrical and plumbing systems, which are the costs most often overlooked and can exceed whatever you negotiated off the price.
A Thai tenant provides an ID card, house registration and proof of income or employment. A foreign tenant provides a passport, a valid visa, and evidence of work or study in Thailand. The usual terms are one month of rent in advance and a two month deposit on a one year lease, with the deposit returned at the end unless there is damage beyond fair wear and tear.
Rent outA foreign national can own a condominium unit in their own name, provided foreign ownership across that building does not exceed 49% of the total unit floor area. Land, and houses on land, cannot be owned outright by a foreign individual. The common alternatives are a long lease of up to 30 years per term, or owning the structure separately from the land. Each route carries different limitations and is worth checking with a lawyer before you commit.
Sell a condoIt is the rule that the unit floor area held by foreign owners in a condominium building must not exceed 49% of the total. If a building has used its quota, a foreign buyer cannot take title there in their own name until an existing foreign owner sells. You check it by asking the juristic person for the foreign ownership ratio certificate, which is required at transfer in any case.
Sell a condoTo a limited extent. Most Thai banks lend to foreign nationals only where there is a work permit and income in Thailand, or a Thai spouse borrowing jointly. Many foreign buyers therefore pay cash, and the funds must be remitted into Thailand in foreign currency with the purpose stated as buying property, because evidence of that inward remittance is required to register the title.
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