Buying "Re-sale" Property in Phuket Thailand
Buying "Re-sale" Property in Phuket
Phuket is still predominantly a cash market.
Most owners of "re-sale" units are looking for full payment within approximately 90 days. However, terms with a payment schedule can be negotiated in an "Offer" to the seller and formally written into the contract between buyer and seller. In Phuket, buying re-sale property refers to a completed property purchased on the secondary market.
When you purchase a property under construction in Phuket you will receive a payment schedule similar to the one below. The developer's payment schedule will correspond to the construction progress and as a stage of the property is completed, a payment is made by the buyer until the property is completed and transferred at the land office.
Reservation Payment when Buying Re-Sale Property
It is typical for a seller to ask for a 10% reservation payment (booking fee) once an offer is accepted and agreed on by both parties. The booking fee is usually followed by a 20-30% deposit at the time of contract signing which is usually in 30 days. This gives the buyer time to conduct due diligence on the property and both parties have enough time to go over the contract with legal counsel. The balance of the purchase price is due at closing and transfer of title at the land office. This can be anywhere from 30 days to 90 days from booking. It is also common for the balance to be paid in full at contract signing and the transfer is done simultaneously.
Reservation Agreement when Buying Re-Sale Property
A reservation agreement (booking agreement) is just a one or two-page document. It is designed to signify that the offer and terms have been accepted and the property is reserved (taken off the market) while the contract is being drafted and due diligence conducted. The reservation payment (booking fee) is made at this time and goes toward the purchase price. It is typically held by the solicitor in a holding account.
Contract when Buying Re-Sale Property
The contract is usually signed within 30 days of the reservation agreement giving the buyer enough time to perform due diligence on the property and review the contract with a property law firm. A deposit is usually due at contract signing and can be put in a holding account.
It is common for new buyers to have many questions when buying re-sale property. Many are explained as frequently asked questions (FAQ).
The balance of the purchase price is paid to the seller at the time of transfer at the land office in Phuket. This can be with a cashier's check, in cash, or by bank transfer.
Payment Schedule for Off-Plan properties
The term payment schedule usually refers to "Off-Plan" properties and properties under construction.
They are generally paid over the course of construction according to a pre-defined payment schedule and the ongoing construction progress of the property. Payment schedules can differ from developer to developer and from project to project.
5 Year Payment Plan on New Construction
There are some developers offering financing terms of up to 5 years. Laguna Phuket is one developer offering this. These longer terms usually come with some interest. When buying re-sale property the buyer can ask for terms from the seller and is on a case by case basis. It just depends.
To learn more about buying re-sale property in Phuket Thailand or if you are considering investing in this market, we would be happy to talk with you.
Call us today at +66 93 606 0906.