Frequently
Asked Questions
Things you need to know
How should I secure the property I like?
As a buyer, you will often spend a long time considering the pros and cons of
a property, the developer and its concept, and the location.
Once you choose your home in the sun, the next step might create a tension between
you and the developer, as a deposit will be required at that stage.
The developer will want to keep the property in the market until a deposit is
received, to be assured the buyer is a genuine one, and you will not want to
hand over payment until you are assured of the legality of the transaction.
You should have a professional advisor to check the pre-sales contract and make
sure it is commercially acceptable.
We can provide the services of a local lawyer with broad knowledge of the local real estate market. Email us for more details and contacts.
Is a deposit refundable if I decide not to go ahead with the buy?
Most developers will make a deposit non-refundable to cover administration fees
and the sales time and marketing costs they have invested into cultivating the
buyer until the point he/she is ready to proceed to the contractual stage.
The best way is to deal directly with the developer, and to ensure the deposit is
subject to clear title and agreement of contractual terms once your legal advisor
has looked into them. This will provide a strong support in case of a need for a
refund due to an issue with the lease or title arising at a later stage.
Ctop can offer a full return policy to all our clients. Email us for more information about cancellation policy.
How fast will I be expected to sign the contract once the title is clear?
Once your legal advisor has confirmed all documents are clear, the developer will
expect you to enter the sales agreement, which also specifies the payment terms.
The legal structure of a contract is usually geared towards protecting both the
buyer and the developer. Re-negotiating terms of a contract at a later stage is
a remote possibility. Again, have the contract scrutinized by your advisor, taking
some time to adjust terms and conditions if you think it necessary.
Are there property taxes in Thailand?
There are no property taxes as such in Thailand that are exactly equivalent to
the property taxes in the west, however, the most comparable taxes on properties
in Thailand are the Land Tax and the Structures Usage Tax.
The Land Tax levied on land is so miniscule, that in practice the body charged
to collect it, rarely bothers to do so, and if they do, they usually wait several
years until the amount accumulates.
The second tax, the Structures Usage Tax, relates to buildings, and is collected by
the municipal office or district office and is only applied to properties used
for commercial purpose.
Can I get a mortgage loan?
Foreigners generally cannot mortgage properties in Thailand, however, most of
the financial institutions in Thailand provide loans for real estate purchasing
to Thais and Thai companies.
It is common for a real estate developer to arrange for his customers to have a
financing package from a financial institution.
In most real estate development projects, a down payment can be made in installments
from 10 to 24 months.
After the down payment has been paid, the sale contract will be made and the balance
amount is paid through the loan, which is financed from a financial institution.
The financial institution requires you to mortgage the property with it as collateral
against the loan.
Ctop offers interesting credit facilities directly from the developer. Email us with your request, we will be able to answer all your questions about financing.
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