Monday, July 26, 2010

Phuket Real Estate - Property - Condominium act

There are three legal acts relevant to the purchase of a condominium unit by an alien, being the Condominium Act  B.E. 2522 (or 1979, the Condominium Act (No. 2), B.E. 2534 (or 1991) and the Condominium Act (N. 3) B.E. 2542 (or 1999) issued on 28th April, 1999. Until recently, foreigners could only own forty percent (40%) of the aggregate unit space. This has been amended to 49% of the aggregate unit space although the ministerial regulations governing this change have not yet been issued. The new Act allows that aliens or alien juristic persons (majority foreign-owned companies) can own up to 100% of the aggregate unit space registered in a condominium up to 27th April 2004. The total development area in that case must be under 5 rai (8000 m2) and located in Bangkok, all municipal districts and "such other areas as shall hereafter be announced by the Minister of the Interior to be foreign owned, provided always (this is unchanged) that the funds for the purchase have been remitted from abroad".

Who can own a condominium:
Basically any foreigner who can enter Thailand legally can buy a condominium.

Currency:
Basically any negoti able foreign currency can be used to purchase a condominium.
The foreign currency MUST be transferred into Thailand as foreign currency and exchanged by the handling bank in Thai Baht.

Documents needed when buying a condominium:
For foreigners to be eligible to purchase a condominium in Thailand they must present proof to the Land Department that the funds have been remitted from overseas in foreign currency. Without such proof the Land Department will not permit the transfer of ownership to the foreign buyer.

1. Remittances must be sent in exactly ("to the letter") the same name as that on the purchase contract, i.e. if Tom Smith is the purchaser then the name Tom Smith must appear on the remittance advice. T. Smith or Smith Enterprises are unaccept able.
2. Transfers of funds MUST be made in FOREIGN CURRENCY only and NOT in Thai Baht, i.e. if you are working in US Dollars then remit in US Dollars. Do not remit in Thai Baht.
3. Amounts transferred must be more than $5,000 in order to obtain a Thor Tor 3 form. (The bank will NOT ISSUE a Thor Tor 3 form for amounts less than $5,000.) This may mean you will have to agree to a modified instalment schedule so that all amounts remitted are more than $5,000.
4. The purpose of the remittance MUST be stated on the remittance advice. This should be "FOR THE PURCHASE OF A CONDOMINIUM". The Bank of Thailand's code for this is 5.22.

A condominium title (first established under the condominium act of 1979) is a title to a part of a building or buildings with multiple owners, and a fractional interest in the land (always a Chanot) and other common assets (such as a swimming pool) and common parts of the building (such as the stair well or lobby). The title will state the
floor area of the private apartment, the ground area of the common land and the percentage interest which that apartment has in the common property. This percentage also represents the value of the voting interest in the condominium company or owners' association.

Buildings "other than condominiums" do not have any form of title document , but their sale or long lease can be registered at the Amphoer (district) land office. Proof of ownership, must be established either from proof of construction or document showing previous sale-purchase (not to be confused with the House Registration document, which is only a register of the house's occupants).

Transfer of a building as distinct from its land requires the posting of 30 days public notice (to see if anyone wishes to contest the ownership).
Foreign nationals (aliens) may own a building (as distinct from its land) and may register such transfer of ownership into their names at the local district office.

For more information contact your local legal representative
(ArticlesBase SC #897516)

Allphuketrealestate - About the Author:
We are living more than 11 years on Phuket Island and have a good knowledge abouth the local property market.

Source:  http://www.articlesbase.com/business-opportunities-articles/phuket-real-estate-property-condominium-act-897516.html