Property Due Diligence is a thorough investigation of a property before buying it. Usually, a third-party, such as an attorney, will survey the target property to gather information that the buyer may find useful. Among the most important things to check out are whether the seller is the legal owner of the property and whether the property is free from encumbrances. However, if you are buying a property from an individual, you should ensure that your due diligence investigation includes everything from property encumbrances and building permits to taxes and land rights.
Check Building Permits
It is important to check building permits in Thailand if you are considering buying a property in the country. There are several laws that regulate building in Thailand, such as the Building Control Act and the Town and City Planning Act. You should also check the land for superficies, usufructs, and servitudes, and you should also be aware of zoning. You should hire a professional who is well versed in building laws in Thailand, so that you will be able to avoid costly mistakes and get a good deal.
The Thai government has a series of tax laws for property dealings. Generally, the buyer pays 2% of the assessed value of the property, while the seller pays 0.5 percent. There is a stamp duty of THB 1 per THB 200 of declared value, but this is waived in certain transactions. These laws apply to both individual sellers and commercial enterprises. To avoid misunderstandings, seek independent professional advice before making a decision.
The Thai government has recently introduced a new tax structure that imposes certain costs on property purchases and sales. Among these are stamp duty and real estate transfer taxes. The latter is applicable to properties owned for more than five years. Listed below are the details of these fees and how they are calculated. These fees are usually shared equally by the buyer and the seller. Listed below are the taxes paid at last transfer when buying property in Thailand.
Rights Against the Land
The law of Thailand is clear in defining two kinds of rights against land. The first, known as superficiary rights, involves a right to use the land, or a structure, on the land. These rights are not ownership of the land, but are only valid for the lifetime of the person who holds them. In Thailand, a superficiary may also be granted to a person for a limited period of time.
Importance of Having a Copy of Property Contract
The title deeds of your property in Thailand are important documents that must be present at the time of a sale or lease. The lease contract is attached to these title deeds and a copy of it must be kept at the land office. Thailand uses unique land measurements – Rai and Wah. Buildings are measured in meters. Generally, you have 30 years to renew your lease. This means that you can sublet or assign the remaining time period.