Part 4: Ownership transfer day and documents

Chapter 10 The process at the land office

This chapter turns transfer day into a series of work steps. Start by booking a slot in advance, with details of the title deed, the parties, the type of legal transaction and the price, then request the land office's document list in writing. If several units are transferred on the same day, give advance notice, prepare a separate file for each unit and assign clear responsibility.

The handbook divides the work on transfer day into 8 steps: registration, submission and signing, document checking, valuation and tax assessment, issue of the payment order, payment, registration of the transaction, and collection of documents. As a general rule, allow half a day to a full day.

The calculation base differs by item. SBT and WHT for juristic persons use the higher of the selling price and the appraised value. The transfer fee uses the appraised value, while the lease registration fee and stamp duty use the rent over the whole lease term. Declaring a price below the actual price saves little compared with the tax risk and the scrutiny of the transaction.

When preparing a cashier's cheque, spell the payee's name exactly, separate cheques by each charge, and allow for business days. At the end of transfer day, check the documents received, scan them immediately, send them to the accounting and legal teams, and keep the originals of the WHT evidence and receipts in a safe place, because this set of documents is used later for the accounting entries and tax filing.

Chapter 11 Documents for Thai customers

Thai customers have a shorter process, but completeness still needs to be checked. Individuals use their national ID card, house registration and name-change documents, if any. If they do not attend in person, they need a power of attorney in the Land Department's form, which clearly identifies the property and the transaction and carries a signature matching the supporting evidence.

Thai juristic persons must prepare a company certificate, shareholder list, documents showing signing authority, director documents and a resolution approving the purchase. The validity period of documents should follow what the land office requires. Where the buyer has foreign shareholders, check the shareholding structure and its effect on the right to hold the property before accepting a booking, and have a lawyer review cases close to the threshold.

On the spouse issue, check marital status and any connection to marital property, especially where the transaction is a disposal or a mortgage, or where the officer asks for additional evidence. Documents that may be needed include the marriage certificate, divorce registration, death certificate or a letter of consent.

Chapter 12 Documents for foreign customers

This chapter organises foreign buyers' documents into 4 groups. The identity group covers the passport, a visa or entry stamp where required, a power of attorney and status documents. The finance group covers evidence of the foreign remittance and evidence of the source of funds. The payment group covers the contract, receipts, the statement of account and a paid-in-full letter. The project group covers the title deed, permits, company documents, approval resolutions and a quota certificate for freehold purchases.

A power of attorney from overseas takes the longest. Plan for notarisation, translation and authentication as required by the land office and the foreign affairs authority; as a general rule, allow 4 to 8 weeks.

On the quota, foreigners may collectively hold ownership of no more than 49% of the total area of the condominium units, not 49% of the number of units. A tracker by area should therefore be kept and updated at every booking or transfer, with a reserve held for buyers who may drop out, and no sales beyond the quota. A master checklist is used to track each customer's status, and key items must be closed by T-30.

Chapter 13 FET Form: the core of foreign buyer compliance

The FET Form is evidence issued by a bank for foreign currency transferred into Thailand, generally for transactions of USD 50,000 or more. For smaller amounts, a credit advice or a bank certificate may be used, and you must check with the land office first which evidence it accepts. For freehold purchases, this document relates directly to evidence of the funds brought in. For leasehold, although it is not subject to the same conditions, it should still be obtained to prove the source of funds and to support a future resale.

The handbook says to control the following before the customer remits the funds: the remitter's name is spelled exactly as in the passport, the recipient is the selling company, the stated purpose matches the transaction (purchase of a condominium unit or a lease), and the document for every instalment is requested within a few days of the funds arriving.

Where payment is made in several instalments, prepare an FET reconciliation showing the foreign currency amount, the exchange rate, the THB amount and the cumulative total, so that the total covers the price as the land office requires. Common problems are mismatched names, the wrong purpose, shortfalls caused by fees or exchange rates, and transfers to the wrong account. Corrections usually take time, so check immediately.