We recommend using a lawyer for any property transaction in Thailand although many buyers and renters tend to be their own lawyers and do their own 'due diligence'. In any case, whatever you decide, it pays to have a comprehensive knowledge yourself of the structure of a property transaction.

If you are looking at buying a NEW condo there will be four typical steps to completion:

1. Title
   This will verify the status of a land over which a condominium is constructed. Often land is under mortgage with a supporting bank. The developer should be able to produce a copy of the land title deed for your perusal.
   
2. Sale and Purchase Agreement
   This document specifies the selling price, terms and conditions of the sale. It is advised that a contract is to be reviewed by a lawyer for the best protection of rights of the buyer, however many buyers in Thailand do not do so.
   
3. Payment
   a) Deposit: Normally, 1% of the total price of a unit is required as a deposit payment to reserve a right to purchase a condo.
   b) Down Payment: a variable sum (perhaps 25% or 30%), depending on the agreement between a buyer and a seller, of the total price of a unit is required as a first payment of the price of a unit. There may also be some payments to be made between a down payment and a transfer date. This will depend on your written agreement with the developer. The buyer's money to buy a condominium must be transferred into a Thailand bank account from overseas.
   
4. Registration of Ownership
   After the delivery of condominium unit and the final payment and the final check on the construction by your or your representative, the seller will then transfer the ownership of the condominium unit into your name. The registration fee, stamp duty, and withholding tax must be paid at the time the transfer of ownership took place.

When purchasing a 2nd hand condo the steps are typically as follows:

1. Title
   Again this is essential for the purpose of verifying the status of the owner and the status of the land where the building is located. Unless under a mortgage the owner will have the original chanote to show you and will provide a copy of BOTH pages for you or your representative to check at the Land Office.
   
2. Sales
   If you buy a condominium from an individual, the sales agreement is normally a ready-to-use contract (An agreement which is not especially drafted for the sale between buyer and seller) or as in the case when Parker Bridge act for the parties it will be provided by Parker Bridge (or the seller if they insist on their own).
   
3. Payment
   A norm is that a buyer shall pay a full price of property to the seller upon the transfer of ownership at the Land Department and any deposits may vary according to the parties concerned however a deposit is usually taken at the time of the agreement of the terms and this deposit should ideally be held by the agent in escrow to protect the buyer.
   
4. Registration of Ownership
   When buying a condominium, the buyer (or a seller, or both parties, depending on the agreement between parties) shall be responsible for the payment of a registration fee, stamp duty and a special business tax (in case of having owned the property for less than 5 years), and withholding tax. This can be calculated in advance by Parker Bridge.

Land ownership : Foreigners are generally not allowed to own land in Thailand, even though the Land Code, since it was first promulgated in 1954, has provided that foreigners may own up to one Rai (1,600 square meters) of land for private residence, but only upon being granted approval by the Minister of the Ministry of Interior. This approval has practically never been given. However, though Thai Property Laws prohibits a foreigner from owning land in Thailand, there are several routes which many foreigners have taken to create situations where they have some degree of control over either the property or the land in question:

1. Thai Spouse
   In 1999, Thai property law, concerning a Thai whose spouse is foreign, was amended in favour of a Thai with a foreign spouse. Such couple may now legally own a land in Thailand. Nevertheless, the land must be registered under the name of the Thai. Also, a foreign spouse must sign a declaration stating that the funds using to buy a land is of a Thai spouse, so that he/she waives his/her right to the ownership of land.
   
2. Limited Company
   A foreigner can effectively own land in the name of a Thai company provided that majority of the shares are Thai owned (at least 51% of shares are Thai and 49% are foreign). However this has come under close scrutiny recently and we recommend contacting a lawyer before even considering this route.
   
3. Leasing
   This method has grown in popularity recently now that Limited Company setups have come under such close scrutiny. The maximum duration of a lease under Thai property law is 30 years and leases often refer to the possibility of renewing again but we understand that under Thai Law there is no absolute RIGHT to renew the lease - the renewal is made on a mutually agreed basis at the time. So assume, when negotiating, that you have 30 years only. If, say, the leaseholders joined together and owned the land the condo occupied via a Thai company this would in theory provide additional protection but the company must be majority Thai owned, naturally. A land lease over 3 years must be registered at the Land Department (this is VERY IMPORTANT). As always use a competent and qualified Thai lawyer.
   
4. Structure ownership
   A company or the Thai spouse of a foreigner may grant a Right of Superficies in favor of the foreigner, giving him the right to personally own all constructions situated on the land. By using this possibility, a foreign individual can be registered as the owner of a house without owning the land. The Right of Superficies can be conceded for a period of 30 years and can be renewed for another 30 years (but not automatically).