Real estate firm Siam Real Estate has said that, in their experience, some 15 percent of sales will fail, be delayed or result in higher closing fees than necessary due sellers being unaware of the sales process, the documents required and the options available to them.
Before a buyer is found for a property and the negotiations begin, the firm strongly advises ensuring ‘your house is in order’. It recommends all owners looking to sell their property should check the following through a certified lawyer in Thailand.
- That all the correct ownership documents to sell a property are in place.
- That these documents are up-to-date and match the records at the Land Office.
- You have the necessary documentation (the Tor Tor 3 form) required to take the sales proceeds out of Thailand once a sale has been completed.
- An estimate is provided for the transfer taxes payable upon the sale.
- An explanation of the selling options available is given. Can you sell the property leasehold or freehold? Can you sell the property with the land owning company
- Whether or not you need to be physically present to complete a sale, or you can give a Power of Attorney to your lawyer now whilst you are in Thailand.
It is not uncommon that, having found a buyer and negotiated the sale price and terms, the seller finds they are missing ownership documents, the tax is much higher than anticipated, they do not have a TT3 form from when they brought funds into Thailand (therefore making it difficult to take the sales proceeds out of Thailand), the freeholder/lessor is required to complete the sale … the list goes on.
All of these are more than likely to result in a lost sale, or at the very least having to return to the negotiating table, thus delaying the sale and resulting in higher closing costs. Checking the above now before a buyer is found will ensure that, having done all the hard work to find a buyer for your property, you do not lose out.
Some real estate agencies, including Siam Real Estate, offer its owners a ‘Property Check-Up’ through a certified lawyer. The ‘Check-Up’ will include:
- Meeting at a lawyer office in Phuket, with ongoing telephone and email contacts.
- Check all ownership documents.
- A check at the Land Office that records there match the documents you have.
- An estimate of the transfer taxes payable.
- A review of all available sales options.
- An explanation of selling process, and a third party needs to be involved (freeholder/lessor).
- The advantages of undertaking such a process are very likely to be:
- A faster sales completion.
- A smooth sales process.
Peace of mind for both seller and buyer when entering into an agreement. - The due diligence will already be completed in advance of finding a buyer.
- Vastly reduce your chances of losing a sale.
- Reduced completion costs and transaction taxes.
- A full knowledge of the sales process through to completion.
- An estimate of the transaction costs and taxes.
- No issues regarding repatriating funds or offshore payments.
- A banner on the property listing, in this case with Siam Real Estate, showing the ownership has been checked by a certified lawyer. This will increase buyers’ confidence in your property and make it more marketable.
This article was contributed by Kevin Hodges of Siam Real Estate. For more information contact him, quoting “Property Check-Up” at kevin@siamrealestate.com.