Several aspects must be taken into account when you have a property for sale in Thailand, including legislation, competition and customers.
You will have to take care of the resale yourself if you have bought an individual property, or in a rental program, housing estate or other program that does not include a buy-back option.
A. Resale of a freehold apartment
The resale of an apartment purchased in freehold is the most regulated and supervised case of resale.
The act of resale consists of a simple transfer of ownership, including a change of name on the title deed, to the Land Department.
It is advisable to call in a lawyer to check that the seller is indeed the owner of the property and that there are no problems with the title deed. A lawyer will also be useful for the drafting of the purchase and sale contract, which defines the identity of the 2 parties, the terms of payment and transfer.
In cases of foreigners who do not speak Thai, they are usually represented by a Thai lawyer at the Land Department to carry out the transaction.
B. Resale of property acquired in Leasehold
Buying a property in Leasehold means renting a property for a period of 30 years, with a lease registered with the Land Department, contractually renewable, usually twice.
In the case of a resale, the conditions depend on those of the contract signed by the initial buyer. These conditions may include the transfer of the remaining years to the new buyer or the cancellation of the original lease and the registration of a new lease for the buyer.
It is also necessary for the buyer to hire a lawyer to study the initial contracts and propose the most suitable resale procedure.
When everything is done according to the rules, there are 2 transfers: the one of the lease on the land and the one of the construction.
C. Resale of property purchased “in Thai company”
In the case where a property is owned by a company under Thai law with Thai partners and a foreign shareholder with 49% of the shares and director of the company (see What is the purchase in “Thai Company”? Is it legal? ), the resale procedure can consist in changing the director of the company (a formality which is carried out at the Ministry of Labour), without the land changing ownership (which remains the same company). Therefore, such a procedure does not imply a transfer of ownership to the Land Department.
The intervention of a lawyer is thus necessary to carry out an audit of the company and to advise the buyer throughout the procedure. The seller must also call upon a lawyer to accompany him on his resale.
Several options are available to you if you wish to resell your property.
First of all, you can turn to the real estate agency that originally sold you the property. They will be the best qualified to advise you and carry out an objective evaluation of the property.
If you made your purchase through a property developer, the latter may have a service to manage resales.
Finally, if you choose not to go through a real estate agency, you can take care of the resale of your property yourself.
In order to maximize your chances of resale, here are some important steps to follow:
– By studying ads in newspapers or on the Internet, compare other properties to yours to make an objective evaluation and get an idea of the potential selling price. The first visits and some remarks will allow you to refine your idea of the price.
– It is advisable to hire a professional photographer who can advise you on some visual details, to take pictures of the property. The property will need to be cleaned, tidied up and displayed in the best possible way. We advise you to keep 10 to 15 photos, avoid showing the same thing several times and ask for a rendering in 2 formats: a high-resolution format (for possible printing of paper ads) and a web format (for online posting on the internet).
– Having a neat sales pitch will increase your chances of resale. Think about what initially seduces you when you buy and highlight all the advantages of the property, including certain details such as the immediate environment (access, possible proximity of shops, restaurants or places to live). Writing the description in several languages can be a plus.
– Be clear about the legal situation of the property, particularly concerning the status of the land and the building (if it is a house). Also be clear about the exact procedure to follow to complete the sale. You can contact the agency or law firm that accompanied you at the time of purchase to clarify this aspect.
– To maximize your chances, solicit a minimum of 2 or 3 agencies. Given the international aspect of the real estate market in Thailand, promoting your property in agencies of other nationalities will increase your chances.
DISCLAIMER : All the information contained in this FAQ is given for information purposes only and is not official information. It is a popularization of problems, some of which (property law and taxation in particular) require the opinion of experts and individual treatment on a case-by-case basis. Although TPG has produced this content in good faith, with the aim of providing information that is as accurate as possible, it cannot be held responsible if certain information proves to be inaccurate.