Pre-Owned Condominium
The purchase of previously owned condominiums is common for a variety of good reasons, including more affordable and fair pricing, or perhaps because of a building's attractive architecture or interior design.
However, while contemplating such a transaction, it is critical to ask: how can a buyer be certain that a seller is the legal owner of the condominium unit?
In addition to this, the question of whether the title is subject to any liens or encumbrances should also be considered. Is the owner competent and authorized to sell the property? How can a foreign national considering the purchase of a unit from a Thai national (or another foreign national), be certain that the building has not exceeded its foreign ownership quota in relation to the saleable condominium area?
Before entering into a contract for the sale and purchase of a pre-owned condominium, here is some advice for conducting a title search on your own.
1. Verify the following essential details by examining the condominium title deed with the local land office:
• Are the details contained in the seller's copy identical to the copy maintained by the land office?
• Does the title deed exist?
• Is the vendor the legitimate owner of the condominium?
• Are there any encumbrances recorded on the title deed, such as a mortgage or lien?
2. Meet with the condominium juristic person to obtain background information about the seller, the condominium juristic person, and the condominium building. Common issues include:
• Potential delinquent maintenance fees associated with the unit
• Current tenants with an ongoing right to occupy the property
• Special condominium co-owner laws and restrictions that may influence a buying decision, e.g., are pets allowed in the building? Is the use of gas for cooking permitted?
• What amenities have been designated as common property?
• Are parking spaces offered for each unit? How many per unit?
• How much is the monthly common area or maintenance fee?
• Does the current foreign ownership quota pose a problem for non-Thai nationals?
• Do the condominium juristic person's personnel appear accommodating, qualified, and dependable?
• What is the status of the project's environment and site? Is it tranquil, well-maintained, and in a convenient location?
• How effective are the security and fire protection services?
3. Investigate the following details concerning the vendor:
• Is he/she of legal age and of sound mind?
• Are they solvent?
• Does he or she face any bankruptcy proceedings?
• If the seller is a minor, is the representative acting lawfully?
4. Perform some background research on the developer, for example:
• Who is the developer?
• How many previous projects have they completed? Did they complete them on schedule?
• In what state are these projects currently, if any? Have they aged favorably?
By adhering to these basic requirements, you will feel more secure and confident that you are dealing with the unit's legitimate owner and are prepared to record the transfer of ownership.
Remember that all documents at the land office will be in Thai.
Prior to entering into any legally binding agreement, it is prudent to contact a qualified Thai attorney if you are not a Thai national or if you do not have a reliable Thai friend with a legal background.
