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For many homeownership is amongst the largest single investments you will most likely make during your life and it's in your best interest to be educated about the process involved. Many of you will no doubt have bought and sold many times in your home country but the rules are often somewhat different in Thailand. Buying a property regardless of value can often be a daunting task, but if you approach it in the right manner it can be a hassle-free process. We have listed below a number of points to be considered that we hope will help you proceed in confidence. In all instances, Cosy Estates are here to assist you every step of the way, so if there's something you are not sure about - always feel free to ask. Firstly let us consider the basic steps involved in buying your property; 1. Things to consider yourself
• What type of property you are looking for (Condo, bungalow etc)
• Which area you would like to live? If you don't have a lot of local knowledge yourself, contact Cosy Estates who will advise on the pros and cons of certain areas.
• Advise Cosy Estates on your basic requirements (no. bedrooms / swimming pool etc)
• What's your budget? With vastly differing prices for properties it's best to establish an upper limit of what you're prepared to spend. In all cases, Cosy Estates will always look to find the best deals possible with our resources available.
2. Searching & buying
• Cosy Estates will assist you with the search for your new home, usually providing you with a short-list of properties that meet your criteria for you to visit along with our knowledgeable staff.
• Upon finding a suitable property, advise your intention to place an offer / purchase.
• Upon offer being accepted, submit a deposit, usually 10%
• A Property Purchase Agreement is then signed
• Balance of property value transferred (see further notes regarding transferring funds).
• Contact the utility companies, water, electric, telephone.
• Final inspection (check inventory)
Neighbourhood
Once you locate a home that appears to fit the bill, arrange a second viewing, perhaps on a different day/time to get another perspective. Heavy traffic blaring into your peace and quiet at rush hour can be a nightmare. Conversely, if you have been used to city living, will you be able to appreciate just how quiet it can get in places? Some areas have not yet been developed to the extent where street lighting is none existent, so if you are living alone will you be able to handle the darkness? Buying outside of your Budget
Careful budgeting is a basic necessity. First time purchasers be warned that it is very easy to buy beyond your means. It is better to buy the home you need and can comfortably afford than experience being forced to sell and buy down. On the opposite end of the scale is purchasing a home that offers less function and feature than what you really need. Inevitably, you will end up purchasing the right home and have to bear the cost of reselling and moving again. Condo/Apartment Living
Condos in Thailand suit a variety of ages. Security and upkeep/maintenance of the gardens may be a concern for those who don't live here all year round. A condo can simply be locked up for the year and be ready for when you come back next time on holiday. For those of you who are retired from the workplace and are beginning to contemplate a smaller residence, a condo can be ideal - no more high maintenance yard work or too many rooms to clean. Determine your needs realistically:
• What are the maintenance charges and are they annually or monthly
• Are the local amenities close by (Laundry service, newsagent etc)?
• Is the Clubhouse open to family members, especially children, on holiday?
• Do the building rules forbid small pets?
• Are you in the same age bracket as the current residents?
• Is it a family-oriented building, or singles only?
• What are the noise restrictions?
• Can hanging baskets and lawn chairs decorate your balcony?
• Can you BBQ in your balcony?
• Is there adequate parking? Is covered parking available?
• Is the personal and building security systems to your liking?
• Are the communal hallways maintained & cleaned to a suitable standard? These are just a few of the questions that you may want to ask whilst you are considering buying a condo. Other questions to ask can be related to the actual ownership of the condo, i.e. can it be in your own name or is it owned in a Thai Ltd company name? Either way these points would usually be answered by our staff. Establishing Ownership & Title Searches
Protect your investment by asking for advice - avoid potential difficulties by having a title search performed as early as possible, establishing who owns the property, right of ways, builder's liens, leases, an undisclosed co-owner etc. Cosy Esates can conduct these searches on your behalf to give you peace of mind. Alternatively you can employ the services of a lawyer here in Pattaya and request that they include this in their remit. Vendor Errors
It is not uncommon to find that repairs have not been made, or other contractual obligations may delay settlement. Plan a walk-through of the property, contract in hand, and check off each item before paying the balance or final settlement. 3. Acceptance of Offer - The Next Stage
Upon acceptance of your offer, the property will be withdrawn from the market and will no longer feature in our window display etc because you have agreed in principle to buy the property. We would then request from you a deposit, usually 10% of the sale value. This can be paid by bank transfer, cash, credit card (Visa or Mastercard) or cashier cheque. The balance would then usually follow within 1 month of the deposit being made, but the timescale is usually agreed between the buyer and vendor (see note below regarding transferring funds from outside Thailand). Usually in any sale, we would prepare for you a 'Property Purchase Agreement' on receipt of the deposit for both the buyer and the vendor to sign. The agreement would contain details such as the name, address, passport details of the vendor and buyer, the property address, title deed reference number or plot details, the agreed sale price, deposit amount, balance and completion date. There will also be terms and conditions referenced which are there to protect both the buyer and vendor should things not be able to complete. It is generally accepted that you can withdraw from the sale at any time without penalty up to the point where a deposit has to be paid and the contract has been signed. Thereafter if you decide to withdraw, then you would usually forfeit the deposit amount. Similarly, if the sale cannot go ahead for reasons such as the information being incorrect as supplied by the vendor, then the vendor would usually be bound to reimburse the deposit amount plus a further amount as compensation to the buyer. Please note that you and your lawyer are responsible for checking the details of the Purchase Agreement as well as the title deed 'Chanot' itself which would ensure that it's 'all above board' and the property & land belong to the vendor. If you do not have legal representation here, Cosy Estates lawyer can conduct title searches etc on your behalf. Once the Property Purchase Agreement have been signed and exchanged, both the vendor and the buyer are committed. Any withdrawal from either party will incur financial penalties as described previously. Unexpected Costs
You should be aware of all costs associated with buying your property and yet to some it is not unusual to reach settlement stage only to find that 'hidden' expenses have occurred. It is important that you understand the buying process here in Thailand and can ensure that you are prepared financially for the payment of transfer fees, property tax, company formation etc. Cosy Estates will of course be pleased to assist with all of the above and will ensure that you are fully informed. Transferring Funds & Tor Tor 3 This is an important point to note and one which is often overlooked by the buyers here in Thailand. Having paid the initial 10% deposit for the property invariably you will need to transfer the remaining balance from your home country into Thailand. When doing so, you should take care to transfer the monies in your own currency ie from the UK send the balance of the payment in GBP Sterling. Also, make it known to the bank that the purpose of transferring such an amount is for buying property. By transferring in your own currency you will often gain a better exchange but more importantly it will make it easier for the bank to grant what is known here as a Tor Tor Sam, or Tor Tor 3. This is a bank certificate that is required whenever a transaction in excess of 20,000 USD takes place. The bank will often not release the funds or allow the transfer of the property to take place without this single piece of paper!
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