Legally buy Phuket beach apartments for sale

On Phuket foreigners can only legally only buy, in their name, a leasehold or freehold Phuket beach apartment for sale or villa on a complex. Another option to explore, that’s if you want to buy land, a free standing house or Villa, or some type of business on Phuket, and want full security, is by setting up your own private limited company. As long as it has mixed Thai and foreign ownership, and foreign ownership is 49% or less, the company can be used to legally buy land or any other business or property on Phuket or in Thailand.

Also, there is a difference between a condo and apartment is ownership. An apartment is defined as a residence that is rented, often as part of a larger residential building. A condo can be similar in structure to a apartment — usually a unit within a larger residential building — but condos are owned instead of rented. Due to the terms, apartment, flat, condo are used differently all over the world for this article we will use the term ‘apartment’.

Step 1: Choose between Buying Leasehold and Freehold

Which one meets your investment strategy and goal? Before you can choose, you may need to understand the difference between them. We give a wide picture of the difference between Leasehold and Freehold in Thai law. In addition, there is a difference in the ownership ratio of the Phuket beach apartments for foreigners; it will be limited to 49% of the area of the apartment (Section 19(2) of Condominium Act B.E. 2551 ‘CA’). While buying the leasehold Phuket beach apartment for sale will not be limited, it can be leased to foreigners in any proportion.

Step 2: Chose the Phuket Apartment Project to Buy

To protect your investment, the completed project is the first choice to buy. The completed project clearly shows you what your unit looks like. As well as common property, land, and all properties for the benefit of the owner, including the CJP office, for instance. It is your co-ownership (sections 13, 14, and 15 of CA). Also, the Apartments Juristic Persons (CJP) composition, community, and how another owner makes a return.

A project that is in the pre-construction period or that is in the construction period should be considered for purchase when the developer has already completed the Phuket apartment’s registration. It means the developer must provide all important details of the apartment to the government agency, i.e., land title, master plan, the ratio of each owner and common property, as well as the draught of the regulations of CJP, etc. (sections 7 to 11 of CA).

A developer who has a strong financial status and a good reputation in the real estate business can be a good point but not an absolute protection. Keep this fact in mind: Phuket is one of the cities that gets a lot of attention from real estate developers and brokers. You have so many choices to choose from.

Step 3: Phuket Beach Apartments For Sale Due Diligence

After you choose one, it doesn’t mean you can buy a Phuket beach apartments for sale immediately. You might have seen the news that the Supreme Administrative Court has issued an order to cancel the land title of the apartment project in Phuket. This order affects the relevant licence, i.e., building permit or apartment licence.

When buying any Phuket apartments for sale doing your due diligence is one of the most important steps in buying a condo in Phuket. When buying a apartment in Phuket, you need to certify:

(1) Apartment Building Permit and Environmental Impact Assessment report (EIA); This makes sure you are going to buy a apartment, not a building that will never be able to give you freehold rights.

(2) Registration of the Phuket Apartment Ownership and Establishment of the CJP; This makes condos different from apartments and enables ownership rights for individual units.

(3) Building Safety Laws; Such as fire protection systems, ventilation systems, shortening of the building, providing a wastewater treatment system before releasing it into the public drainage, etc. Also, consider the construction safety requirements in determining the distance of the building. A condominium project with a height of more than 23 meters or a total building area of 10,000 square meters must have a distance of more than 6 meters from other people’s land, etc., and there are a lot more things of due diligence to do.

Step 4: Make a Freehold or Leasehold Apartment Sale and Purchase Contract

(1) Reservation Agreement; You will be bound by essential provisions. Such as the purchase price, sinking fund, next steps in the purchasing process, a time frame for your due diligence, etc. You will need to pay a deposit fee, which will be refundable if the due diligence is not passed and has a serious impact on your leasehold or freehold rights. For example, if the land title history is not enough to say the land title is legal because of an incorrect building permit or because the condo building is not complying with building safety laws,

(2) Apartment Sell and Purchase Contract (S&P); You will be bound by all the general provisions of the purchase contract. Such as purchasing price, payment, leasehold or freehold right transfer, closing date, registration date, default, penalty, dispute solution, etc. You may be interested in learning how to make a contract under Thai law and an idea for making a Freehold Sale and Purchase Contract. It is also useful for leaseholds.

On top of this, it is important to know that the brochure and all marketing advertising are past S&P (section 6/1 paragraph 3 of CA and supreme judgement no. 3274/2553).

Step 5: Phuket Apartment For Sale Registration and Handover

Both when buying freehold or leasehold Phuket apartment for sale it needs to be registered at the land department. It is a condition of validity under Thai law. The leasehold apartment (with more than a 3-year lease period) must be registered with the competent land department under Section 538 of the Civil and Commercial Code (CCC). The freehold apartment (purchasing an immovable property) must be registered with the competent land department under sections 456 and 1299 of the CCC.

This registration system is aimed at recording your rights to the public document. Your name will be shown on the title deed to declare your rights to the public.

In addition to Registration when buying a Phuket apartment for sale Required Documents The required documents for registration would be a basic document to identify a person, like your passport or ID card. In the event that you are a legal spouse, a consent letter from your husband or wife will be requested. You will also need to provide a bank credit note or bank advice to prove that you have transferred the funds from overseas to purchase the unit.

The documents must clearly describe the object of the fund transfer. For example, ‘to purchase condominium ABC unit 123′. Or you need a Thai bank certificate that clearly describes the object. That is the same amount that you have withdrawn from the bank to purchase a apartment unit number. In addition to the previous, more details shall be provided as requested by land department regulations.

Registration Fees The registration fees are different between buying a freehold and a leasehold Phuket beach apartments for sale. Transfer fees and taxes for the leasehold in total are about 1.1% of the registration purchase price. The freehold in total is about 6% of the registration purchase price. Depending on many criteria, such as land department value and declared price, the seller is a juristic or natural person.

New Enact for the Apartment registration Land departments always enact new regulations in relation to documentation and fees. The best is to update from time to time before the registration. The Civil and Commercial Code and Rules and Regulations at the Land Department may puzzle some people. But you have to follow it to not see your registration fail.

Company Holding Apartment in Phuket In some cases, there will be an option to avoid condominium registration, taxes, and fees. That is, by taking over a Thai or BVI company that gets the leasehold or freehold of the Phuket beach apartment for sale. In this case, company due diligence will be another important part of the purchase.

On top of the company holding, you may be interested to know how to take full control of a Thai company. The BVI company structure is not complicated like that of a Thai company. A BVI company can only have one shareholder and one director. The seller needs to provide you with a good-standing certificate and an incumbency certificate. Also, BVI registered agent contact details are needed for future company maintenance.

3 Common Mistakes When Buying a Apartment in Phuket; 1-Not following the Land Department Regulations Relevant to oversea fund transfer documentation; For instance, not clearly describing the subject of the transfer Use bank certificates like a wire transfer, which is not acceptable by the land department. The issue is that your registration failed.

2-Not Declaring The True Price; Sometimes both parties agree to declare the registered price as low as possible. The risk is that you will have to pay a lot of income tax when you resell. Sometimes it has a bad effect on overseas refunds because the transaction and documentation will be reviewed and approved by the Bank of Thailand. Not the land department.

3-Not Doing the Apartment Due Diligence; Most of the cases happened when the buyer bought the Phuket apartment before the developer had done the registration of condominium ownership and establishment of the CJP. In this case, some headaches from the litigation procedure against the developer can occur. Notably, it is not only receiving the lease registration without the right to vote at the meeting. But also to be able to be nominated at the CJP. Of course, resale makes for easier marketing.

In conclusion, buying a Phuket beach apartment for sale or resale at the right time could yield a good return on investment. Understanding and knowing the relevant legal process is something you can do to protect your investment. To manage and prevent your risk, all 5 steps should take place, and 3 common mistakes should not arise when you buy an apartment in Phuket.

Our Local Phuket Property Services

La QingTing Property is a kind of Phuket estate service serving Bangtao, Cherngtalay and Surin beach. Our main service is offering Phuket beach apartments for sale or resale, but sometimes Thai and expat owners advertise their land, Hotel, bar or restaurant for sale with us. Properties come and go all the time.

We also offer a very unique service where we by-pass any agent and offer only Phuket beach Villas, flats / apartments for sale by owners, or via the management team of the Phuket beach Villa or Apartment / Flat complex. Owners simply come into our Bangtao Beach Bar & Café and put a for sale sign on our notice board. It’s that simple. Then if it sells the owner then offers us a small commission. This in turns keeps our lights on and staff happy, due to the staff get a tip with each sale also :). By doing this we can offer you the very same property that any agency is advertising at a massively reduced price, basically due to there’s no massive agent commissions to pay out. We also use the same proses if customers are interested in finding and purchasing a business like a restaurant, Hotel or Guesthouse to lease or buy.

At this moment in time Rental Property Phuket has many great freehold and leasehold Phuket beach properties for sale and villas in the Bangtao, Surin beach or Cherngtalay area of Phuket. These Phuket beach apartments for sale or resale, and also some cheap priced Villas and houses, are all sold between 1.8 million THB (Av: £40,300 – €47,000 – $51,400) and 3.5 million THB (Av: £78,400 – €91,000 – $99,900) for a two bedroom unit, and all are a great secure investment for anyone who wishes to rent out or retire and live in the Bangtao, Surin beach or Cherngtalay area on the North West coast of Phuket island. Also, all visa, banking and lawyer consultation and advise is provided once you are here to make your purchase and piece of mind as quick and safe as possible.

La QingTing Property Sales: We offer offer secure Apartments / Flats close to Laguna, Cherngtalay, Surin beach & Bangtao beach, and all within a 5 minute walk to many shops, banks / ATM, pharmacies, mini-markets, restaurants and cafés. Room amenities will include: Mini kitchen (With microwave, sink, large fridge, hob etc), shower / toilet room and living space. Some units have Wifi, flat screen TV and balcony. Complex facilities include: Parking, reception, lift, CCTV security and swimming pool. Some Condominiums also have a gym also

The legal side of buying Flats on Phuket

Just a recap. To make your Phuket beach apartment for sale purchase and living experience the best it can be from day one either you can meet the owners or our expat guide will pick you up from where you are staying and show you all available Phuket beach apartments for sale within your price range, quality and area requested, and then also help you to organise all visa (Be it tourist, business or retirement), banking, pension, lawyer consultation and general legal advise, making buying any Phuket beach apartment or villa as quick and safe as possible. You can read a bit of legality information about what foreigners can buy and the difference between buying an apartment / flats, villa or other business or land on Phuket by going to our Phuket beach flat ownership guide. What’s more we can offer local information and introductions to like minded expat and Thai community clubs, such as: Golf, darts and pool teams, diving, motor bike and social clubs to name a few, so you will be meeting like minded people right away.