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The buying process
doesn't end once you have negotiated an acceptable price. There are
still a number of steps to be taken before you can even think of moving in.
You will need to:
In a private treaty
sale, the transfer process begins with your legal representative examining the
Purchase Agreement
prepared by the vendor's representative. This
Purchase
Agreement should detail the following:
- Title Deed
details;
- Property
address;
- Names of the
parties to the contract (you and the vendor);
- Selling Price;
- Chattels
(movable possessions which may be included in the sale);
- Terms and
conditions (e.g. conditional on financing, sale of an existing
property, satisfactory property inspection or repair work on the
property you want the vendor to complete prior to settlement);
- Settlement date
(the day on which you agree to pay the full purchase price and take
possession of the property).
Your legal
representative is
responsible for checking the details of the
Purchase
Agreement, ensuring
that it has a clean title and that it
doesn't contain anything detrimental to the purchase or intended use of
the property, e.g. caveats, encumbrances or title restrictions.
| Make
sure the
Purchase
Agreement
details all fittings and
inclusions to the property that you believe should be
incorporated into the purchase. Such items are
collectively known as chattels, examples of which
include the cooker and rangehood, curtains, light
fittings, and etc. |
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The
Purchase
Agreement
is signed once all the inspections are satisfactorily completed and the
finance has arrived into your Thai bank account. Each party signs their
own copy of the
Purchase
Agreement, which has been prepared in duplicate.
The vendor keeps the copy you have signed and you retain the copy the
vendor has signed. This process is referred to as the 'exchange of
contracts'.
Once all the parties
have signed the
Purchase
Agreement, it cannot be altered or changed.
However, there may be unforeseen changes of circumstance which affect
either party to the contract, between signing and settlement, that may
require a change to be made to the
Purchase
Agreement. Provided all parties
agree, there is no reason why changes cannot then be made.
If you are buying a
condominium, you will need to show that the funds have been sent into
Thailand in foreign currency from overseas. The local receiving bank
should be asked to provide the buyer with a
Tor
Tor 3 Certificate of remittance, stating that the funds arrived
in Thailand for the purpose of buying a condominium. These certificates
need to cover the full buying price of the condominium and need to be
presented at the Land Department when the transfer is made. The
certificates do not need to specify a particular property. The funds
sent into Thailand must be in a foreign currency and be converted into
Thai Baht on arrival - DO NOT send Thai Baht from overseas, as it will not
be accepted for the purchase of a condominium.
| Remember
to remit the monies into your Thai bank account in
foreign currency, and ensure you alert your bank to
provide you with a
Tor
Tor 3 for the remittance. |
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The settlement date
is the day on which you finalise payment and assume possession of the
property. In legal terms, settlement is the completion of the property
transaction.
Your legal
representative
should arrange the settlement date, time and location and inform you of
the details and requirements.
On settlement day,
the balance of the purchase price is paid and the title deeds (legal
documents stating property ownership) are taken to the Land Department
for registration of the transfer, and the keys to the property will be
handed over.
You will also need
any
Tor Tor 3's (if you are buying a condominium), your passport and a
photocopy of your passport, and details of your parents names, dates of
birth and place of birth. You will also need a copy of your name and
your parents details translated into Thai language for the Land
Department.
| You
are entitled to vacant possession at the time of
settlement. You are also entitled to a final inspection
just prior to settlement - if the property is not as
expected, i.e. the property has been unfavorably altered
in some way since you exchanged contracts, talk to your
Thai lawyer. Your lawyer may choose to inform the vendor
that you will not settle until the property is returned
to the state it was in at the time the offer was made. |
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Immediately following
settlement, ensure that you take out a cover note insuring both the
property and any movable possessions included in the sale. It may well be
worth taking out this cover note even earlier, i.e. as soon as you sign
the
Purchase Agreement. This will ensure that the property is fully
covered, just in case the vendor's insurance is inadequate or unpaid.
Most insurance
policies will provide for either 'replacement' or 'market value'. A
replacement policy will give you 'new for old', whilst an indemnity
insurance will give you 'old for old'.
Further information
on insuring your home can be found in
Insurance
Needs.
Now you are ready to
get stuck into planning your
move.
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