How This Differs From a US Closing
No escrow company. No standardized purchase contract. No fixed closing date driven by a lender. The Phuket purchase is driven by your lawyer's due diligence, the Land Department's schedule, and international wire mechanics. More transparent — and slower — than most American buyers expect.
The most important structural difference: you need your own independent Thai property lawyer. Not the developer's lawyer. Your own. Budget $1,500–$3,000 for a standard transaction.
Step-by-Step
Step 1 — Engage Your Independent Thai Property Lawyer
Before any offer. Your lawyer receives the title documents on any property you are seriously considering before you sign a reservation agreement.
Step 2 — Reservation Agreement and Holding Deposit
Sign reservation, pay deposit ($2,000–$10,000 for villas; $1,000–$5,000 for condos). Typically refundable if due diligence reveals a material title defect.
Step 3 — Due Diligence (2–4 weeks)
Your lawyer: verifies Chanote title, confirms registered owner matches seller, searches for encumbrances, verifies property not in a protected zone, reviews all building permits, confirms foreign quota for condos.
Step 4 — Sales and Purchase Agreement
Your lawyer reviews and negotiates the SPA. Power of attorney: drafted by your lawyer, signed and notarized in the US, sent to Thailand. Allow 2–3 weeks.
Step 5 — Wire Transfer and the FET Form
Wire purchase funds from your US bank in foreign currency. The Thai bank issues a Foreign Exchange Transaction (FET) form. Keep permanently — required to repatriate sale proceeds when you sell. Separate FET form for each wire tranche.
Step 6 — Land Department Transfer
Your lawyer attends on your behalf via power of attorney. Transfer fees paid at this point. For freehold condo: Chanote transfers to your name. For leasehold: lease is registered.
Transaction Costs
| Cost | Rate | Paid By |
|---|---|---|
| Transfer Fee | 2% of appraised value | Split by negotiation |
| Transfer Fee (LTR holder) | 0.01% | Buyer (reduced) |
| Stamp Duty | 0.5% (held 5+ years) | Seller |
| Specific Business Tax | 3.3% (held under 5 years) | Seller |
| Thai property lawyer | $1,500–$3,000 | Buyer |
| Total buyer costs | ~1–3% of purchase price |
Timeline: 30–90 days for resale with clean titles. Off-plan: 12–36 months to handover.
Do I need to be in Thailand to complete the purchase?
No. Most American buyers complete entirely remotely via power of attorney. Your lawyer attends the Land Department transfer on your behalf.
BHHS New England Properties