In compliance with Thai legislation, there are several conditions and benefits of owning a condo in Thailand:
Foreigners are legally able to purchase up to 49% of the registrable area of a Condominium Project (Foreign Quota). The remaining 51% can only be owned by Thai nationals or Thai entities.
The majority of condominiums in Bangkok are freehold. Foreigners can own up to 49% of the total area of a condominium on a freehold basis.
Some developments in Bangkok are built on leasehold land with leases of 30 years and options to renew. Leasehold ownership is also offered in condos where the foreign quota for freehold title has been reached.
Bangkok Condo – Transaction Costs
There is normally a 2% transfer fee for new condos which is either paid by the vendor, the buyer, or is split between both parties, depending on the purchase agreement. For resale properties there may well be a fee for the transfer of the registration.
In a new condominium project, the buyer pays a one-off lump sum on transfer of the property from the developer to the purchaser. This money is to be used for major renovations and replacement of equipment when necessary. The aim of this fund is to ensure the maintenance of the building and ultimately its future value.
Each party pays its own legal fees and there is no norm as the purchase can depend on many different complexities.
Common area management fee/utilities:
These fees are paid by owners for the upkeep of the common areas of condominiums and housing estates. For new residential developments, it is common to pay up to several years’ management fees in advance. Utilities are generally paid on an “as use” basis.