How to Buy Property in Thailand as a Foreigner – Step-by-Step Guide

Buying property in Thailand as a foreigner can be an attractive opportunity, as the country offers a unique blend of natural beauty, cultural richness, and investment potential.

However, for a foreign buyer, the process can seem complex at first. With this guide aims to provide a clear, step-by-step approach to help you understand the essential aspects of purchasing property in Thailand. Whether you’re looking for a vacation home, an investment property, or a permanent residence, we hope that this article will equip you with the necessary information to make an informed decision.

The process of a successful property purchase in Thailand starts with you. Here are our recommended steps to follow:

1. Find a Knowledgeable Local Real Estate Agent

First, look for an agent fluent in English and with long experience in the local market. You can ask for referrals from other expats or check online reviews to find a reputable agent. Then, contact a couple of agents to get a feel for who understands your needs and is responsive to your inquiries.

2. Identify Suitable Properties & Schedule Tours

• Work with your agent to identify properties that fit your budget and preferences in terms of location, size, amenities, etc.
• Visit the shortlisted properties in person if possible so you’ll get a feel for the area and the property.
• Carefully consider factors like proximity to the beach, schools, shopping, and other amenities that are important to you.

3. Put an Offer or Ask Your Agent to Negotiate

• Once you’ve decided on a property, your agent will submit an offer to the seller on your behalf.
• They will work with you and negotiate the price and terms to get you the best deal possible.
• Be prepared to counter-offer if the seller’s asking price is too high.

4. Put Down a Reservation Fee and Sign the Reservation Agreement

• After your offer is accepted, you’ll need to pay a reservation fee (typically 1-2% of the purchase price) to remove the property from the market.
• Sign a reservation agreement outlining the sale terms and your intention to purchase the property.

5. Hire a Lawyer to Conduct Due Diligence

• Engage a Thai property lawyer to review all legal documents and permits related to the property.
• Your lawyer will conduct a title search to ensure the seller’s ownership is clear and there are no outstanding liens or encumbrances.
• The lawyer will also advise you on the best ownership structure for your situation (e.g., freehold, leasehold, company ownership).

6. Read and Sign the Sales and Purchase Agreement

• Once you’re satisfied with the due diligence results, your lawyer will draft a Sales and Purchase Agreement.
• Carefully review the agreement to ensure it accurately reflects the terms you negotiated.
• Sign the agreement in the presence of your lawyer and the seller.

7. Follow the Payment Terms

• The agreement will outline the payment schedule, typically involving an initial deposit followed by progress payments during construction (for off-plan properties) or a lump sum upon completion.
• Ensure you make all payments on time to avoid delays or penalties.

8. Conduct a Survey and Defect Check

• Before taking possession of the property, arrange for a professional survey and defect check.
• This will identify any issues or defects that need to be addressed by the seller or developer.
• If significant defects are found, you may be able to negotiate a price reduction or request the seller fix them before handover.

9. Complete the Handover at the Land Office

• On the handover day, visit the local Land Office with the seller and your lawyer.
• Depending on the ownership structure, the title deed will be transferred to you (or your company) or a leasehold agreement will be registered in your name.
• Pay any applicable taxes and fees, such as transfer fees and stamp duty.

By following these steps and working closely with your real estate agent and lawyer, you can confidently and easily buy property in Thailand as a foreigner.

Meet the Author

Mikael Lundin

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Do not hesitate to contact us if you have any further questions on the subject, or if you would like to know more about property in Phuket in general.