Introduction: Buying or selling land in Thailand involves a specific process, in most cases, very different from Western countries that ensures a smooth and legally binding transaction. In this blog post, we will explore the steps involved in the settlement of land sales between the buyer, seller, and Isan Real Estate Co., Ltd at Thailand Land Offices. Understanding this process can help both buyers and sellers navigate the complexities of land transactions and ensure a successful outcome.
- Finding the Right Property: The buyer typically begins the land sales process by searching for a suitable property. Isan Real Estate Co., Ltd, as a reputable real estate agency in Thailand, can assist buyers in finding properties that meet their needs and requirements and assist them through the entire process.
- Due Diligence: During this stage, the buyer conducts due diligence on the property, verifying its legal status, boundaries, and any encumbrances. Isan Real Estate Co., Ltd can help facilitate the necessary checks and ensure all legal requirements are met.
- Offer and Acceptance: Once the buyer has found a property, they submit an offer to the seller through Isan Real Estate Co., Ltd. If the seller accepts the offer, the buyer pays a deposit to secure the property.
- Sale and Purchase Agreement: Once the due diligence is complete, a Sale and Purchase Agreement (SPA) is prepared by Isan Real Estate Co., Ltd. The SPA outlines the terms and conditions of the transaction, including the purchase price, payment schedule, and transfer of ownership.
- Payment: The buyer is required to make a deposit payment as specified in the SPA. This typically involves the buyer transferring the funds to an escrow/trust account managed by Isan Real Estate Co., Ltd. The funds are held until the completion of the transaction.
- Transfer of Ownership: Both the buyer and seller, accompanied by representatives from Isan Real Estate Co., Ltd, visit the Land Office to transfer ownership of the land. The required documents, including the original title deed, buyer and seller personal ID, Tabien Baan (house registration book) and in the case of a Thai registered company, copies of the Thai registered company shareholders, are submitted to the Land Office.
- Land Office Procedures: At the Land Office, the transfer of ownership is processed. The Land Office checks the documents for accuracy and authenticity. They will also verify the amount in Thai Baht of transfer taxes, duties and which will be required to be paid to the Land office, either by the seller, buyer or proportionally by both. Once everything is in order, the Land Office updates the land title deed to reflect the new ownership.
- Stamp Duty and Taxes: The buyer, seller or both as agreed on by the SPA is responsible for paying stamp duty and taxes associated with the land transfer. Isan Real Estate Co., Ltd can provide guidance on the applicable fees and help facilitate their payment.
- Completion and Handover: Upon the successful transfer of ownership, the Land Office issues a new title deed reflecting the buyer’s name. Isan Real Estate Co., Ltd assists in the completion of the transaction by handing over the new title deed to the buyer and ensuring all necessary documents are provided.
- Additionally, Isan Real Estate Co., Ltd goes the extra mile to ensure a smooth transition for both the buyer and seller. They kindly arrange transportation to accompany you to the local Amphur (City regional office) where the names on the blue house registration book (Tabien Baan) can be easily changed. Moreover, they take care of visiting the necessary authorities, such as the Provincial Electricity Authority (PEA) and the Water Authority, to update the billing names for the newly purchased property. With their friendly assistance, you can relax and leave the paperwork in capable hands, making the entire process hassle-free.
The settlement of land sales in Thailand involves a series of well-defined steps to protect the rights of both buyers and sellers. By engaging with Isan Real Estate Co., Ltd, buyers and sellers can benefit from their expertise and guidance throughout the entire process. From finding the right property to completing the transfer of ownership at the Land Office, Isan Real Estate Co., Ltd plays a vital role in facilitating a successful and legally binding land transaction in Thailand.
Author: Ernie Draper, Managing Director, Isan Real Estate Co., Ltd.
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