Real estate taxes in Thailand are lower than in the West. In addition, the property transfer fee is only 2% of the property’s estimated value. And, if you’re renting out your property, tenants in Pattaya can be very good tenants. Then, you can enjoy lower property taxes and a lower cost of living.
Due Diligence Report
Before buying a property in Thailand, it is important to obtain a due diligence report. This report will confirm the legitimacy and legal status of the property. It will also cover all aspects of the property such as its telephone, sewage and other infrastructure. There are many benefits of getting a due diligence report, including the assurance that your new home is free of encumbrances.
A due diligence report will also help you determine if the property you are purchasing is in line with current zoning laws and any potential attachments. To prepare a due diligence report, you will need to hire a qualified property practitioner with legal experience. These professionals will be able to conduct a thorough land title search and evaluate any necessary building permits to ensure that the property is legal.
Right of Habitation
Right of habitation is a legal concept in property conveyancing in Thailand. This right grants a person the right to reside in a property without paying rent. The right is terminated when the rent becomes payable. This type of right is only applicable to residential properties in Thailand.
This right can be limited to a certain period of time or be lifetime. If you want to buy a property in Thailand, it is important to speak to a property lawyer to find out the specifics.
Legal Requirements
If you’re considering buying a property in Thailand, you may be wondering what the legal requirements are. In Thailand, property transactions are governed by the Civil and Commercial Code. This law states that any contract involving a piece of real estate should be registered with the Land Department. Likewise, any lease agreement that extends for more than three years must be recorded. Moreover, you’ll need to execute all relevant agreements before the transfer of ownership can be completed.
If you’re buying a property in Thailand, it is important to check the seller’s identity and ownership. This can be done by performing a title search. This step is particularly important in Thailand, because fake title deeds are rampant.
Cost
The costs of property conveyancing in Thailand vary depending on the value of the property. Normally, the seller and buyer share a 2% transfer fee, but this can be negotiated. In addition, stamp duty of 0.5% is charged if the property is owned for more than five years. However, this tax is not collected if the buyer or seller has a collective bargaining agreement.
The fees charged for a property purchase in Thailand may include the following: Stamp Duty, valuation, survey, and title search. The developer is not allowed to charge more than 50% of these fees in new builds, while fees for private sales are split 50/50 by the buyer and seller.