You’ve found a project by a reputable Developer with a history of delivering projects on time. You want it, so what’s next?
Step 1 - Unit selection and agreement of terms and conditions
Generally there is little to no flexibility in developer pricing. Some Developers may be slightly flexible on payment plans or include (or discount) a furniture package. Make sure you understand the position of the desired unit in the project and what facilities/features immediately surround it.
Ensure all parties understand and agree the major terms and conditions of the transaction such as:
- The purchase price
- Reservation deposit value that will remove the property from the open market
- Will the buyer conduct a due diligence?
- If so, will the reservation deposit be refundable? Subject to which terms and conditions?
- What is included in the purchase price? Any furniture or fittings?
- Taxes and transfer fees - what is the buyer responsible for and what is the developer responsible for?
- What is the payment schedule for upcoming payments?
- What is the projected completion date for the project and what penalties are in place if the Developer is late?
Step 2 - Reservation Agreement
This document is provided by the developer and outlines the general purchase terms and timeline agreed above that are associated with your investment.
Step 3 - Reservation Deposit
A deposit of approximately 2% of the purchase price (varies from developer to developer and market to market) will secure the unit of interest removing it from the open market. Some deposits are refundable subject to legal due diligence. Ensure that you work with the Developer to obtain a payment slip for the transfer.
Step 4 - Sales and Purchase Agreement
Typically you will have 30 days to review the terms and conditions of the Sales and Purchase Agreement which contractually outlines the complete overview of the project and details of the unit you are purchasing.
Step 5 - 1st Contract Payment
This payment can range anywhere between 20-40% of the purchase price. For non-residents of Thailand the funds must be transferred into the country from an overseas bank account.
Step 6 - Payment Instalments
Depending on where the project is in the build cycle, your next payment will be linked to milestones in the construction progress. Rough dates can be provided by the developer but a payment should be linked to completion of critical advancements in the project. Again, payment must come from overseas.
Step 7 - Snag List
Two to three weeks prior to handover a snag list will be created to correct any defects in the property prior to handover.
Step 8 - Transfer
When the build is finished the Developer will serve a notice to complete. You’ll pay the rest of the purchase amount and the property is yours. You are not required to be in Thailand to complete the handover process. This can be executed by a 3rd party on your behalf.
Now that we've got the basics covered, time to narrow down the best market in Thailand for you!