Condo Resale in Thailand

Condo Resale in Thailand. In Thailand, condominiums are among the few types of real estate that foreign nationals can legally own freehold, making them a popular option for both residence and investment. Resale of a condominium—whether by a Thai or foreign owner—follows specific legal, regulatory, and procedural steps under the Condominium Act B.E. 2522 (1979) and related regulations.

Unlike off-plan or first-hand units purchased from a developer, resale transactions involve title transfer between private parties, due diligence on existing ownership, and compliance with the 50% foreign quota, fund remittance rules, and Land Office registration requirements.

This article provides a comprehensive legal and procedural guide to resale of condominiums in Thailand, including ownership restrictions, tax implications, buyer qualifications, and key risks to watch for during the process.

**1. Legal Framework for Condominium Ownership and Resale

1.1 Key Legislation

• Condominium Act B.E. 2522 (1979) (and amendments)

• Land Code

• Foreign Exchange Regulations issued by the Bank of Thailand

• Revenue Code (for taxation of property transfers)

• Civil and Commercial Code (for contract law)

1.2 Administrative Authorities

• Department of Lands (Land Offices)

• Bank of Thailand (for foreign currency remittance oversight)

• Condominium Juristic Person (managing the building)

2. Eligibility to Own and Transfer Condominiums

2.1 For Foreign Buyers

Foreign individuals can buy and hold freehold ownership in a condominium unit if:

1. The foreign ownership within the condo project does not exceed 49% of total saleable area (Section 19 of the Condominium Act)

2. The buyer remits funds from abroad in foreign currency, equivalent to the purchase price

3. The remitted funds are registered via Foreign Exchange Transaction Form (FET Form) or bank-issued credit advice

4. The buyer is an individual—not a foreign company or entity (unless exceptions apply under BOI or Treaty of Amity)

Foreigners cannot own land under Thai law, but they may own units above ground level with freehold rights.

3. Resale vs. Developer Sale: Legal Differences

4. Step-by-Step Procedure for Resale Condominium Transfer

Step 1: Due Diligence

• Verify title deed (Chanote), unit number, and square meters

• Check for existing mortgages or encumbrances

• Review condo regulations for restrictions

• Confirm with juristic person that foreign ownership quota has not been exceeded

• For foreign buyers: Confirm eligibility and prepare foreign remittance documents

Step 2: Sale and Purchase Agreement (SPA)

• Draft a legally binding agreement outlining:

  • Purchase price

  • Payment terms

  • Deposits

  • Conditions precedent (e.g., foreign quota, transfer date)

  • Who pays what fees and taxes

• May be in Thai or dual-language format

Legal review is strongly recommended, particularly for foreign buyers unfamiliar with Thai property law.

Step 3: Fund Remittance (For Foreign Buyers)

• Buyer remits funds from abroad in foreign currency to a Thai bank account in their own name

• Purpose of transfer must be stated: “For purchase of condominium unit in Thailand”

• Obtain:

  • Foreign Exchange Transaction Form (FET) for amounts > USD 50,000

  • Bank Credit Advice or Confirmation Letter for smaller sums

Step 4: Juristic Person Clearance

• Obtain:

  • Debt clearance certificate (no unpaid maintenance or sinking fund)

  • Letter confirming foreign quota

  • Copy of building’s house registration (Tabien Baan)

• Some condos may charge administration fees for these documents

Step 5: Title Deed Transfer at Land Office

• Parties appear at the local Land Office (in the jurisdiction of the condo)

• Submit:

  • Chanote (title deed)

  • SPA

  • Identification documents

  • Power of attorney (if applicable)

  • FET Form or credit advice (for foreign buyer)

  • Taxpayer ID (if seller is Thai entity or individual)

  • Juristic person’s documents

• Land Officer will:

  • Review documents

  • Ensure full payment has been made

  • Collect transfer fees and taxes

  • Register the new owner on the Chanote

The entire process is typically completed within one day, unless disputes or documentation issues arise.

5. Transfer Fees and Tax Liabilities

Taxes are calculated on the government-assessed value, which may differ from market price.

6. Post-Transfer Considerations

6.1 Registration with the Condominium Juristic Person

• Provide copy of updated Chanote

• Update ownership records for:

  • Maintenance fee billing

  • Voting rights in general meetings

  • Common area access

6.2 Utilities Transfer

• Electricity (MEAs/PEAs) and water bills should be transferred to the new owner’s name

• Some condominiums offer support or standardized letters for this

7. Legal Risks and Pitfalls

8. Can Foreigners Resell Their Condo Units?

Yes. A foreigner who has legally acquired a condominium unit may resell it to another foreigner or Thai national. However:

• The foreign buyer must still remit foreign currency from abroad

• If selling to a Thai national, FET documentation is not required

• All transfer taxes apply as per usual

Conclusion

Reselling a condominium in Thailand is a legally well-defined process, but it requires careful attention to ownership documentation, foreign quota compliance, fund remittance regulations, and Land Office procedures. Both buyers and sellers—particularly when one party is a foreign national—should engage in documented agreements, perform thorough due diligence, and ensure proper registration of ownership and taxes.

Navigating the resale process with clarity ensures full legal protection, smooth transfer of ownership, and compliance with Thailand’s property and exchange control laws.