What Payment Schedule can I Expect when buying a "Re-sale" Unit?

What Payment Schedule can I Expect when buying a "Re-sale" Unit?

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 Reservation Agreement between buyer and seller. And a "re-sale" unit in Phuket refers to a completed property purchased on the secondary market.

It is typical to see a 2% reservation payment followed by a 30% deposit at contract signing (usually 30 days) and then the balance of the purchase price at the transfer of title.

A reservation 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 while the contract is being drafted. The reservation payment is made at the same time as the reservation agreement.

The contract is usually signed within 30 days of the reservation agreement. This gives the buyer enough time to perform due diligence on the property and review the contract with a property law firm. The deposit is due at contract signing.

It is common for new buyers to have many questions. 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 cashiers check or thru an escrow account or in cash.

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.

There are some developers offering financing terms of up to 5 years.

To learn more about re-sale properties or payment schedules please call +66 93 606 0906.

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