What is a condominium?
A condominium, also known as a condo, is a type of housing. A condo is a single unit located within a larger condominium development. A condominium development would be a large property complex that is divided and sold in individual units (condos). The ownership of a condominium also includes shared ownership in the ‘common property’.
What is Common Property?
Common Property (common area) is defined as the parts of a condominium development that are not individually owned units. i.e the land on which the condominium development is situated and any parts of the property which are provided for use by, or for the common benefit of the co-owners.
What is the difference between a Condominium and an Apartment?
A condominium building which is governed by the Condominium Act provides individual title deeds for each unit with shared ownership in the common areas of the complex. A condominium unit can be owned under freehold or leasehold.
An apartment building is owned by a single owner / company with the individual units leased to buyers. An apartment can be sold only under leasehold.
Are there any requirements for a foreign individual to purchase a condominium in Thailand?
There are very little requirements to buying a condo in Thailand as a foreigner. However a foreigner must remit foreign currency into Thailand in order to purchase a condo.
Can foreigners legally own a Condominium unit in Thailand?
Yes, Foreigners can take ownership of a condo by either purchasing a condo unit with a freehold title or entering into a long lease agreement, commonly known as “Leasehold”.
What are Freehold and Leasehold ownership?
Foreigners may acquire freehold ownership of a condo unit in Thailand within the set foreign ownership quota of a condominium. By law foreigners can own up to 49% of the total saleable area of a condominium project. The remaining 51% can be acquired under leasehold ownership. Leasehold gives the right of use and possession of the unit for a set period of time and is fully transferable.
What is the maximum lease term available for leasehold ownership?
The maximum lease period is 30 years with additional 30 year renewals. In most cases developers of condominiums will offer a total of 90 years ownership (30yrs + 30yrs + 30yrs).
What is a condo unit title?
A condo unit title is the ownership document issued by the Land Department.
What is a house book in a Condominium?
A house book (a.k.a. blue book, or Ta Bien Baan) is a residential address registration book issued by the local government municipality. Foreigners would need to change to a “Yellow” house book. The house book should not be mistaken as a legal documentation pertaining to ownership.
Are there any taxes associated with owning a condo?
No. There are at present no taxes in Thailand for owning a condo.
Are there any additional running costs to owning a Condominium?
Yes. All co-owners will have to contribute to the general upkeep and running of the condominium, this required payment is known as a CAM Fee (Common Area Maintenance Fee). Your fee will be calculated per month based on the total sqm of your condominium unit. However the CAM Fee in Phuket is generally collected yearly.
Example: CAM Fee 50 baht per sqm, per month, condo unit size 100 sqm, total yearly fee = 50 baht X 100 sqm = 5,000 baht per month X 12 months = 60,000 baht per year.
Condos also have a special reserve fund for major repairs and upgrades of the building, this is known as a “Sinking Fund Fee”.
Should I appoint a lawyer when purchasing a condo?
Yes. Here at buyphuketcondos.com we would always recommend you to consult with a professional legal adviser even if the purchase seems straightforward. We are happy to recommend reputable law firms to ensure your purchase goes smoothly.
Can I get financing and mortgage for the condo?
As a general rule foreigners would not be able to secure mortgages to purchase property in Thailand from a Thai bank. Should you only be able to secure a property with the assistance of financial support please contact buyphuketcondos.com for further assistance and advice.