FINDING A PROPERTY IN THAILAND

In many instances, clients locate the property that they wish to purchase through friends or family members who know of a home for sale in the area, and in the price range desired. However, for many prospective buyers, while they may know the general area in which they wish to buy and their own budget, beyond that they don’t really know where to start. The following is a brief description of the most common and sometimes overlooked sources for properties.

REAL ESTATE AGENTS

A real estate agent may represent the Seller, the Buyer or in certain circumstances, both Buyer and Seller. In many ways, Real Estate Agents in Thailand perform similar functions to those in other countries but, there are important differences that both Buyers and Sellers should be aware of in utilizing agents in Thailand. There are both Thai and Foreign real estate agents in Thailand, often working for the same agency. Traditionally, agent commission rates vary between 3% and 6% depending on the market and value of the property.

• A good agent should be thoroughly familiar with the geographic area he or she works in and should be able to narrow down your search substantially, based on your specific requirements. They should also be thoroughly familiar with market pricing in a specific area and be able to make a reasonable assessment of whether the price asked by a Seller is “fair” by local market measures.
• Agents should have access to a broader range of listed properties than the normal unassisted home shopper. However, you should also be aware that an agent may intentionally avoid showing properties listed by competing agencies, properties listed for sale by owner or, properties in which he or she feels that the commission earned may be less than they would like. Human nature is what it is.
• Please note that at this time, there are no widespread or comprehensive property listing databases in Thailand analogous to the “Multiple Listing Services” or “MLS” databases that exist in many countries in the West. “Open House Showings”, advertised to the public and which are a major realtor marketing tool in many other countries, are quite rare in Thailand. To a great extent, a real estate agent’s value in Thailand is determined by his or her personal knowledge of the target market and his or her personal connections and networks that provide an in depth and up to date knowledge of the properties available. 
• Your agent should also be able to help you narrow your search by going through a home with you and noting what you like and dislike to eliminate similar homes from your search list. The agent should also a source of information about the home itself: how long it’s been on the market, the neighborhood and access to schools, known defects in the home, etc.
• An agent will generally tender offers and counteroffers on your behalf. For Buyers uncomfortable with the give and take haggling quality of such negotiations, this buffer may have value to the Buyer.
• CAVEAT: Many real estate agents which we have encountered or dealt with in Thailand do not seem to fully appreciate the inherent conflict of interest for an agent in representing both Seller and Buyer to a property transaction (“dual representation”). Many just don’t see it as a problem at all notwithstanding what most Westerners view as the clear conflict brought about by the agent’s competing obligations to obtain the highest possible price and best terms for the Seller, while also being obligated to obtain the lowest possible price and best terms for the Buyer. There are detailed and enforced industry ethical guidelines dictating agent conduct in dual representation situations in many countries but, that is not the case in Thailand. Extra caution should therefore be exercised by Buyers or Sellers in dual representation situations or, legal counsel should be retained to act only on one party’s behalf as a “check and balance”. 

FOR SALE BY OWNER

Many home Sellers list their property for sale themselves, normally in hopes of avoiding paying a real estate agency commission, which can be beneficial for both Seller and Buyer, provided the two can find each other. 

English language sources for finding homes for sale by owner may include:

• Owner Listing Websites
• Thailand By Owner Website
• The Bangkok Post Classified Advertisements
• The Nation Classified Advertisements
• The Bangkok Trader Classified Advertisements
• The Pattaya Trader Classified Advertisements
• NOTE: The law firm of White & Weber Ltd. provides the foregoing links for public information purposes only. White & Weber Ltd. assumes no responsibility or liability for the contents thereof.

BANK FORECLOSURE PORTFOLIOS

As in many countries in the world today, stressful economic times lead to persons defaulting on their mortgage obligations, ending in a bank foreclosure wherein the mortgagee bank takes title to the property. Numerous banks in Thailand hold substantial property portfolios, offering properties for sale. The primary drawback of investigating these resources is that most such information is available only in the Thai language. If you wish to investigate bank property portfolios, we can refer you to bilingual (Thai-English) assistants to help you review available properties. Google translate functions may also be helpful, albeit imperfect.  The primary bank property resources are:

• Bangkok Bank (Thai)
• Kasikorn Bangkok (English) 
• TMB Bank (Thai)
• NOTE: The law firm of White & Weber Ltd. provides the foregoing links for public information purposes only. White & Weber Ltd. assumes no responsibility or liability for the contents thereof.

PROPERTY AUCTIONS

Major Thai banks and the Bankruptcy Courts hold periodic auctions of property. Bank auctions are fairly well advertised in advance both in print and on their websites but, many of the properties auctioned are often those properties which could not be disposed of through their normal sales procedures and which may be distressed in some way. That is, of course, fine if you are seeking a distressed property for rehabilitation or development and the price is appropriate. The Bankruptcy Courts also hold periodic property auctions of various types of real property which has fallen under receivership in Bankruptcy proceedings. The only practical way we have found to stay apprised of upcoming auctions and the properties offered is to physically go an pick up a catalogue of properties from the Court offices. As a practical matter, it is virtually impossible to buy property at auction in Thailand unless you speak Thai fluently or, have a fluent Thai speaker at your side. Finally, all laws and requirements relating to property ownership in Thailand apply equally to auction sales and, if you wish to purchase property at auction in Thailand you will need to be prepared to demonstrate compliance with all necessary legal requirements at the time of sale.

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THAICONDOLAW.COM, THAICONDOLAWYER.COM, BKKCONDOLAW.COM AND BKKCONDOLAWYER.COM are public information resources of White & Weber Ltd., Attorneys at Law. We are committed to making the confusing Thai property ownership system more understandable to, and more “user friendly” for, our clients and the general public. We are dedicated to protecting our client’s rights and promoting their understanding of those rights. Thailand is our home and we are happy to help you in making it your home as well.