How to buy Condominium in Phuket?
The Essential Guide to Buying a Condo in Phuket for Foreigners (Century 21 Hero Phuket Edition)
Phuket remains one of Asia's most attractive locations for overseas property ownership. Buying a condominium in Thailand is relatively straightforward for non-residents, but navigating the legal framework is crucial.
As your trusted expert, Century 21 Hero Phuket provides this step-by-step guide to ensure your purchase process is smooth, legal, and hassle-free.
Step 1: Legal Due Diligence & Foreign Ownership Rule
The key to buying a condo in Thailand is understanding the Condominium Act B.E. 2522 (1979).
Expert Tip from Century 21 Hero Phuket: Always verify with the condo building management (or the Land Department) that the foreign quota has not been exceeded before signing any agreements.
Step 2: Securing Your Unit and Initial Agreements
Once you find the ideal Phuket condo for sale, the process of securing it begins:
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Reservation Agreement: You will sign a Reservation Agreement and pay a Reservation Fee (usually 50,000 THB to 200,000 THB). This fee secures the unit for a short period (e.g., days).
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Sale and Purchase Agreement (SPA): You will review and sign the formal SPA. This legally binding document outlines the payment schedule, completion date, and unit specifications.
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Initial Deposit: Upon signing the SPA, a deposit (usually 10% to 30% of the purchase price) is paid.
Step 3: Transferring Funds and Obtaining Official Documentation
This is the most critical step for foreign buyers to ensure a legal freehold title transfer.
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International Fund Transfer: Instruct your foreign bank to transfer the full purchase amount to a dedicated bank account in Thailand (either the developer's account or your personal Thai bank account).
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Currency Exchange: The funds must be received in foreign currency (USD, EUR, AUD, etc.) and converted into Thai Baht by the receiving Thai bank.
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Obtain the FET Form (Foreign Exchange Transaction Form): For transfers exceeding 50,000 USD (or its equivalent), the Thai bank must issue a FET Form (formerly known as Thor Tor 3). This document legally certifies that the foreign funds entered Thailand for the explicit purpose of purchasing the condo.
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Bank Confirmation Letter: For transfers below 50,000 USD, the bank will issue an official letter confirming the source and purpose of the funds.
Crucial Point: Without the FET Form or the Bank Confirmation Letter, the Thai Land Department will not allow the freehold title transfer to a foreign national.
Step 4: Final Transfer and Title Deed Acquisition
On the agreed-upon transfer date (usually upon project completion for new developments):
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Final Payment: The remaining balance is paid.
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Meeting at the Land Department: You (or your legal representative) will meet the seller/developer at the local Phuket Land Department office.
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Transfer Documentation: The FET Form and all required identity and ownership documents are submitted to the Land Department official.
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Taxes and Fees: Applicable transfer fees (typically 2% of the appraised value), stamp duty, and specific business tax (if applicable) are paid. These costs are often split 50/50 between the buyer and seller.
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Receive the Title Deed: The Land Department will register the ownership change and issue the Condominium Title Deed (Chanote) in your name.
Congratulations! You are now a freehold owner of a condo in Phuket.
Century 21 Hero Phuket: Your Partner in Phuket Investment
At Century 21 Hero Phuket, we specialize in connecting international buyers with the best Phuket real estate investment opportunities. We facilitate the entire process, including:
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Property Sourcing: Matching you with high-yield Phuket condos in prime locations like Bang Tao, Patong, and Kamala.
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Legal Review: Working with trusted legal counsel to review the SPA and ensure compliance.
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Fund Transfer Assistance: Guiding you on the necessary documentation (FET Form) required by the Thai Land Department.
Ready to own your piece of paradise? Contact Century 21 Hero Phuket today!