Bangkok is the capital and the most populous city of Thailand with a population of over 10 million. Bangkok is also known to be the hub of the Thailand economic engine and the perfect gateway to the ASEAN market. Therefore, real estate investing in Bangkok can turn out to be a very profitable business with sky-high potential.
Thai law forbids foreigners to buy land in Thailand except for American citizens. However, foreigners are allowed to own up to 49% of Thai condominium units. Foreigners are also allowed to buy a building without buying the land on which it is built.
Setting up Business
Hence, the easiest and the most practical way of buying and selling property in Bangkok is to own a private limited company which gives owners the ability to invest in properties. A private Thai limited company would require a minimum of three shareholders while the liability of each shareholder will be limited to the value of their shares. Foreigners can own up to 49% of shares in a limited company. Assigning a system through an attorney where the foreign shareholders hold greater voting rights will indirectly give the foreign owners the majority influence in the management.
After a successful establishment of the private limited company, the next step would be to select a property agent in Bangkok who would know the city inside and out. The agent should be versatile and skilled in knowing the business hotspots of the city and choose a property accordingly. Although some foreigners tend to skip this step it is advised to use an agent because of the ability of the agent to be a liaison between the company and the owner.
Speak With Legal Experts
Getting legal advice through a Thai law firm that specialises in Bangkok real estate would be the next task while doing a title search of the property. The seller should have a clear legal deed and the title search will trace property origins back to the original owner. The title search will also help a foreigner in verifying the access rights of the property. The law firm would prove useful in completing this title search.
Paying the Money
Making a deposit and reviewing the contract would be the final steps of buying a property. The deposit is usually non-refundable, and the seller will then draft the property contract. Therefore, it is pivotal to get assistance from a local law firm to finalise the details and make sure there aren’t any loopholes or flukes in the contract. Obtaining insurance is also a legal requirement in property investment.
Selling a specific property would be the opposite way around. If the company wants to sell a property, they can advertise it them self or hire a property agent to do all the needful. A purchase contract should be drawn with the assistance of a law firm to negotiate the terms which would include the agreed price and the items included in the sale. Once the purchase contract has been agreed upon and signed by both parties, the property would be successfully sold.