Buying and selling property in Thailand is a very common activity, even for a foreigner. However, the process of transferring property ownership can be get confusing with limited guides on English. The following step-by-step guide breakdowns the entire process of transferring property ownership in Thailand.
Note: If you are buying or selling a property through a real estate agent, you will not need to worry about this process. Once you have agreed to buy or sell through the agents, the agents will help you with the ownership transfer process until it is completed. However, there are many cases where you might deal directly with the owners, so it is good to know what you need to do to transfer property ownership in Thailand smoothly.
Following are the most common steps for foreigners to complete the property transfer process.
Step 1) Pre-purchase agreement
Once you have agreed to buy or sell the condominiums, the first thing you should do is to sign the pre-purchase agreement with another party. The pre-purchase agreement is usually done at the same time with the deposit or the first payment. The agreement will include the details of both parties, the details of the property, selling price, payment terms, other conditions or remarks (if any).
Seller prepares:
- Purchase agreement (to be signed) – 2 copies
- Copy of Title deed (Chanote) – 2 copies
- Copy of ID/passport – 2 copies
Buyer prepares:
- Copy of ID/passport – 2 copies
Step 2) Buyer transfers fund from oversea
According to Thai law, the fund must come from another country other than Thailand – the one who transfer money from oversea need to fill in Telegraphic Transfer Form (T/T Form) specifying the objective of transaction as “For Purchase Condominium “Name of Condominium” Unit number XXX under (buyer’s full name)”. Purchase funds must be transferred in foreign currency ONLY and converted to Thai Baht by beneficiary Thai Bank.
Please note that the amount of funds transferred needs to exceed the purchase price of the property (equivalent or more).
Step 3) Buyer obtains the documents from Thai bank
After the fund is transferred to Thai bank, the buyer will need to go to the bank and the bank will issue the Foreign Exchange Transaction form (FET) or so called “Credit Advice”. This document is required by the Department of Land of Thailand to be presented as evidence of oversea fund transfer along with cashier cheques or cash amount of purchase price during the property ownership transfer.
Step 4) Seller obtains the foreign quota certificate and debt-free certificate
Seller will request the juristic office of the property to issue foreign quota certificate and debt-free certificate for all common expenses prior to ownership transfer date. Usually this process can take up to 15 days so the owner should request the documents in advance. The debt-free certificate will be valid for ownership transfer at the Department of Land only 7 days after the date of issue.
List of documents to obtain the foreign quota certificate and debt-free certificate
- Request form (prepared by the property’s juristic office)
- Copy of ID / Passport of buyer and seller
- Copy of Land Deed
Step 5) Ownership transfer at Department of Land
After all the documents are ready, both parties can schedule the transfer date at the Department of Land (in the same district as appeared on Chanote). It is advisable to go in the morning so the process can be done in the day. Usually it will take around 1-3 hours if there are no other complications or missing documents.
Seller prepares:
- Original Thai ID Card / Passport and copy
- Original Work permit and copy (if any)
- Original Chanote (Title Deed) and copy
- Original House Registration Book and copy
- Foreign Quota Certificate
- Debt-free certificate issued by Condo Juristic Office
- Copy of Up-to-date Utility Bills
- Keys, Key Cards, Access Cards, Parking Stickers, etc
- ID Card / Passport of spouse (if any)
Buyer prepares:
- Original Thai ID Card / Passport and copy
- Cashier Cheques or cash
- Proof of oversea fund transfer – Foreign Exchange Transaction Form (FET)
- Original Work permit and copy (if any)
- ID Card / Passport of spouse (if any)
On the day of the transfer, the following is required to be done at the Department of Land.
- Submit the documents of both parties at the reception to get queue number
- Transfer process at the counter: The officer will verify all documents and ask both parties to sign documents issued by the department (all documents will be in Thai)
- Pay the transfer fees, taxes, and related expenses
- Receive the Land deed: Please check and verify the name on the deed and all details after the officer has done the documentation.
Upon receiving the Land Deed, the buyer will exchange the cheques or cash with the seller. The seller will also handover the key sets, access card and all other necessary items to the buyer.
You might also be interested in our detailed guide on the types of property foreigners can buy in Thailand.
