Legal Process for Foreigners Buying Condos in Bangkok

Buying a condo in Bangkok as a foreigner involves specific legal steps. Thai law allows foreigners to own condos under certain conditions, but failing to meet the legal requirements can cause problems. This guide explains the purchasing process, the vital title deed verification step, and the role of property lawyers in securing a smooth transaction.

Legal Steps in Buying Condos

Before getting into the details, it’s important to understand that buying a condo in Bangkok as a foreigner comes with legal and financial requirements that must be met in a specific order for the purchase to be valid. Here’s a breakdown of the key legal steps you’ll need to follow:

1. Confirm Eligibility to Buy

Thai law limits foreign condo ownership to 49% of the total saleable area in a condominium project. So if the building you are hoping to buy a condo in is at its quota for foreign ownership, you cannot buy in that particular development.

Also, the money used to buy the condo must come from overseas in foreign currency and be converted to Thai baht in a local bank. The bank will issue a Foreign Exchange Transaction Form, which is required for property registration.

2. Conduct a Title Search

A title search confirms that the seller legally owns the condo and that no mortgages or legal claims exist on the property. This search happens at the Land Office, where you can also check if the condo is part of the foreign ownership quota. This step is a vital one for avoiding fraud or poor investments.

3. Review the Sales Contract and any Addendums

Before signing, you need to check that the contract includes:

• Payment schedule
• Responsibilities for taxes and fees
• Penalties for late payments or construction delays (if buying off-plan)
• Property transfer date

Some contracts favor sellers, so having a lawyer review the terms can prevent hidden risks or unjust clauses.

4. Transfer Money to Thailand

You must transfer the full purchase amount in foreign currency to a Thai bank. With a request to the bank by the Thai Bank account owner, they will issue a Foreign Exchange Transaction Form, which you must present at the Land Office during registration. Without this document, you cannot register the transfer of the condo.

5. Finalize the Transfer at the Land Office

On the transfer day, both buyer and seller (or their legal representatives) meet at the Land Office to complete the ownership transfer. The following fees are paid at this stage:

• Transfer fee: 2% of the official appraised value
• Stamp duty: 0.5% (if the seller has owned the unit for more than five years or has their name in the house registration book for more than 1 year.)
• Specific business tax: 3.3% (if the seller has owned the unit for less than five years)
• Income tax (for seller): Calculated based on a progressive rate

Once the transfer is complete, you’ll receive the updated title deed (Chanote) with your name as the legal owner.

Foreign Ownership in Condos

Thai law limits you to owning 49% of the total saleable area in a condominium project. However, there’s no limit on how many units you can own, as long as the development hasn’t reached its foreign ownership quota.

If the quota prevents your purchase, you have other options. You can secure a long-term lease or sub-lease a unit, giving you access to the Thai property market without full ownership. Despite these restrictions, condos remain the most popular choice since Thai law generally prohibits foreigners from owning land.

Role of Property Lawyers in Condo Transactions

A property lawyer makes sure the buying process follows the law and insulates you from poor investments and fraud on the part of the seller. Their role includes:

• Checking the title deed to confirm the seller is the legal owner
• Reviewing contracts to make sure the terms are fair and enforceable
• Handling the transfer process at the Land Office
• Making sure foreign currency rules are followed so the property is properly registered

Some sellers or agents may try to speed up the process or use vague contract terms to rush through an unfair agreement. A lawyer helps you avoid falling into this trap and the financial loss or legal trouble that would follow.

Handling Title Deeds and Contracts

A title deed proves property ownership, but not all deeds offer the same level of security. The Chanote (Nor Sor 4) provides full ownership with exact land measurements. Other deeds, like the Nor Sor 3 Gor, grant ownership but come with survey limitations that can cause boundary disputes. Less secure deeds, such as the Nor Sor 3, only indicate possession and require further verification before buying.

Skipping a title deed search can lead to serious problems, including boundary disputes, third-party claims, or fraudulent sales. Checking the title at the Land Office confirms the seller’s ownership and confirms that the property has no legal issues.

Contracts also need careful review. They should clearly state the purchase price, payment terms, tax responsibilities, penalties for delays, and termination conditions. Without legal guidance, buyers could agree to terms that create financial risks or complicate the purchase.

Final Steps to Secure Your Condo

Buying a condo in Bangkok as a foreigner is possible, but the process involves strict legal steps. You need to confirm that the property is within the foreign ownership quota, verify the title deed, follow foreign currency transfer rules, and make sure all documents meet legal requirements. A lawyer helps protect your investment by handling due diligence, contract reviews, and legal paperwork. Skipping any of these steps could lead to legal problems or possible financial loss. 

Siam Legal has years of experience guiding foreigners through Thailand’s property laws for a smooth and legally sound transaction. Our team reviews contracts, verifies property titles, and confirms all requirements are met, so you can buy your condo with confidence and avoid fraud and legal disputes. Contact us today to get started.

Category: Blog