How to resell a property in Thailand?
Whether to cash in, or simply because you are moving on, there might be a time when you want to sell a property in Thailand. Below is a look at what needs to be done, and a few tips on making the process go smoothly.
How do I sell my property in Thailand?
When you are trying to resale a property in Thailand, one of the first things you will need to do is to advertise it.
This can be done in the same way you would do in your home country:
- You could try posting in some of the local newspapers and there are some English ones available.
- You can also try advertising online and you will find several forums and other online groups.
- You can use the services of a real estate agent to benefit from his network and knowledge of the market.
The latest option is the preferred option for most people and perhaps also the most effective. This is because a real estate agent will already have sophisticated marketing techniques in place that helps when trying to resale a property in Thailand. They will basically do much of the hard work while you wait for a buyer.
When it comes to selling, there are also certain steps you can take to help ensure everything goes as smoothly as possible:
- Have an appraisal done.
- Set a realistic asking price.
- Make any repairs before the property is shown.
- Make sure the property is as clean and tidy as possible before showings.
- Have a draft sale and purchase agreement available.
- Also have all other documents related to property on hand when needed.
What are the legal obligations for the seller in Thailand?
When the price and other details have been negotiated, a purchase contract will need to be drawn up and signed by all parties involved. This will usually be organized with help from the real estate agent. The purchase contract should also include any furniture and appliances that are included in the sale. It is at this point when a deposit on the property is usually paid.
The sale agreement should also include a clause stating the seller can withdraw just in case plans change. The seller will be expected to return the prospective buyer’s deposit in full if they withdraw.
Assuming the mortgage
In some cases, the seller will finance the purchase for the buyer. The buyer will be expected to pay a certain amount on completion, with the rest to be paid in instalments. This would be a private agreement between the parties involved. It is sometimes done in Thailand where foreigners are concerned because it can be difficult for the foreigner to get funding like mortgages themselves.
Exactly which documents will be provided can depend on the specifics when trying to resale a property in Thailand.
All or most of the documents below will likely be required:
- ID card or passport.
- Related title deeds.
- Purchase agreement contract.
- Marriage or divorce certificate.
- House registration document.
- Appropriate documentation from the bank if there is still a mortgage on the property.
- If the property is a condo unit, a document will be needed stating no more than 49% if the condos in the building are foreign owned.
- Power of attorney form if required.
- If the property is a condo, a Foreign Exchange Transfer from may be needed.
- A document declaring there are no outstanding maintenance fees.
- Any relevant warranty and property tax documents.
Reselling a freehold, leasehold or a property purchased with a Thai company
If you are trying to resale a property in Thailand that was purchased under a Thai company then the proceedings are quite like if you were selling as an individual. Differences are mainly in the documentation that will need to be provided to show the land is being transferred from a company.
In some cases, particularly when the buyer is a foreigner, it is easier for the company to be transferred to the buyer instead. The land will remain under the ownership of the company so the new company directory will also acquire the ownership of the land.
While this will help to cut through a lot of the proceedings involving the resale of a property, it will still be necessary to have lawyers involved in the transaction. The transaction will typically be carried out by the ministry of labor because the buyer will need to be installed as the new company director.
While this method might be preferred when there is a foreign buyer, it is less likely to be the case when there is a Thai buyer. This is simply because the buyer is less likely to want to acquire the company as well as the property.