Additional Documents Required for Transfer of Condominium Unit

It is almost common knowledge among foreign property buyers in Thailand that we need a Foreign Exchange Transaction form in order to buy a condominium in Thailand. It is an important document required so as to allow foreigners to purchase a freehold condominium unit here. This is essentially the only document you will need to show if you were buying off-plan and the Condominium Juristic Person (CJP) is yet to be registered. However, if you were buying a condominium unit in the secondary market, you would be required to have a few more additional documents in order to process the registration. There are many buyers who choose to handle the registration themselves so it may be worthwhile to note what you will need to take with you to the Land Department. Most of these documents will be in Thai but with some assistance and some patience waiting in queue, it is certainly quite doable.

Additional Documents Required for the Transfer

There are several additional documents that are required for the transfer of a condominium unit. These documents are necessary to ensure that the transfer is legal and secure.

1. Sale and Purchase Agreement: The Sale and Purchase Agreement is a legal document that outlines the terms and conditions of the property sale. This document should be signed by both the buyer and the seller and should include details such as the purchase price, payment terms, and transfer date.
2. Title Deed: The Title Deed is a legal document that proves ownership of the property. The Title Deed should be checked to ensure that it is in the seller’s name and that there are no liens or encumbrances on the property.
3. Condominium Juristic Person Certificate: The Condominium Juristic Person Certificate is a document that provides information about the condominium building and management. This document should be obtained from the building’s management office and should include details such as the condominium’s rules and regulations, maintenance fees, and any outstanding debts or liabilities.
4. Payment Receipts: Payment receipts should be provided to prove that the purchase price has been paid in full. It is important to ensure that these receipts are legitimate and that they are issued by the seller or the seller’s representative.
5. Power of Attorney: If the seller is unable to attend the transfer of the property, a Power of Attorney may be required. This document allows a representative to act on the seller’s behalf and should be signed by both the seller and the representative.
6. Passport: Both the buyer and the seller will need to provide a copy of their passport to prove their identity.
7. Transfer Fee Receipt: The transfer fee receipt is a document that proves that the transfer fee has been paid. This fee is typically 2% of the property’s appraised value and is paid by the buyer.

Along with a copy of the FET form obtained from the bank, a buyer will also need to bring along a Certificate of Expenditure from the Condominium Juristic Person (CJP). A CJP is similar to a Homeowner’s Committee (as it is known in the US and elsewhere) which, among others, manage the property. This certificate should be produced by the CJP to the current condominium owner in order to certify that the unit being transferred is free from any outstanding debt. Under the new Condominium Act, the CJP manager has to issue this certificate within 15 days of receiving such a request from the owner. Buyers should ensure that the seller has obtained this document prior to the transfer date and it would be a good idea to include this in the sale and purchase agreement as well. Further to this, if the buyer of the unit is a foreigner, the Land Department will also require the CJP to issue a certificate indicating that the property is under the 49% foreign ownership ratio and that such a purchase will not cause such ratio to be hindered. This is particularly important if you are buying a property from a Thai owner. If that is the case, this check on the ratio should really be conducted as part of the initial due diligence exercise prior to the signing of any contracts. It would also be a good idea to put this as a covenant of the seller in the contract in case any changes occur from signing to the date of transfer. Armed with all these documents, the registration process should go smoothly.

Conclusion

It is important to ensure that all of these documents are in order before completing the transfer of a condominium unit in Thailand. It is also recommended to work with a reputable lawyer who has experience in Thai property law to ensure that the transfer is legal and secure.