Renovating a Condo in Bangkok? – Before You Do Read This
Thailand offers significant opportunities for international condominium owners looking to establish their residence in this inviting country. Every day, a variety of condominiums—ranging from budget-friendly options to luxury condos—become available for purchase, particularly in vibrant locations like Bangkok.
However, as a foreign condo owner, it is crucial to prioritize your interests, especially if you are considering renovations in the near term.
Discover important information regarding condo renovations in Bangkok, including 5 important tips aimed at helping you save time and energy, while also reducing stress throughout and following your condo acquisition.
#1 – Transfer of Property Documents
It is essential to ensure that all required documents are properly organized.
When purchasing a condominium in Bangkok, the ownership transfer process involves creating a comprehensive written record of the transaction through a Sale and Purchase agreement, along with the associated fees and taxes that must be paid to the Land Department and the Government.
If the transfer process and necessary protocols are not followed, the ownership will not be legally recognized, even if both the buyer and developer have executed a Sale and Purchase Agreement.
The duration for transferring ownership of a condominium to a foreign buyer, or a house to a Thai citizen, can range from 30 to 120 days, typically taking about 30 days from the initial visit to the local land department office.
To legally transfer the property to a foreign condominium buyer, the sale deed must be officially stamped by Land Department officials, and identification documents must be collected and verified by those officials.
The following documents are required for the transfer of the purchased property:
• Tabien Bann – Property Registration Book
• Sales and Purchase Agreement
• Identification documents, including passports, for both the buyer and seller
• Land Title Deed registration paperwork
• Building permits for the property
• Full payment of Property Transfer Fees
#2 – Condominium Renovation: Understanding Building Permits and Codes in Thailand.
To facilitate a seamless condo renovation in Bangkok, it is essential to obtain a building permit issued by the Bor Tor. This document serves as verification of ownership and confirmation that all necessary approvals have been secured for the construction or renovation of the property. The permit must be presented to the Land Department during the property transfer process, and prospective buyers should reach out to the condo developer for further clarification regarding this critical document.
According to the Building Control Act, noncompliance can lead to significant fines and potential imprisonment for over five years. Additionally, if any violations are identified, a work stoppage may be enforced, requiring the condo owner to implement all modifications and corrections within a timeline set by the Thailand Land Department. Failure to comply with the stipulated timeline could result in the demolition of improperly renovated sections of the property.
#3 – The Thai Civil and Commercial Code protecting Condominium Owners
Under Section 589 of the Thai Civil and Commercial Code (Section 589: Contractor Responsible for Good Quality Materials), homeowners of condos and houses receive significant protection. This section stipulates that the materials provided by the renovation contractor must meet high-quality standards as per the agreement. Should the contractor use inferior materials, they are liable for any resulting damage and defects attributed to those materials. Moreover, unless stipulated otherwise in the contract, the contractor holds responsibility for a duration of one year from the completion of the construction project.
In cases where the contractor attempts to conceal the use of lower-quality materials for cost-saving reasons, the one-year liability period does not apply, particularly if a fixed price has been agreed upon and documented in the contract. This means if the contractor provides an updated total estimate while work is in progress, after already reaching a written agreement on the price, they must adhere to using the specified materials and finalize the project without imposing additional costs. It is important to note that some contracts may include provisions allowing for a 10% to 20% increase in costs should material prices fluctuate during renovations.
#4 – Identifying, Engaging, and Compensating Contractors for Condominium Renovations in Thailand
There are numerous choices available for finding contractors for condo renovations in Bangkok. However, foreign condo owners should be aware about dishonest contractors who may exploit language differences and use deceptive advertising to attract clients.
If you encounter challenges with communication, consider enlisting the help of a Thai friend to assist with translation and negotiations. It’s crucial to ensure that all documentation, invoices, and receipts are issued in your name, as you are the rightful owner of the condo.
Additionally, verify that the contractor can demonstrate experience with similar projects and provide at least five references from former clients for you to contact. Exercising caution is essential.
With the prevalence of online resources, you can leverage platforms to research portfolios and reviews. Reviewing their work on social media and checking reputable review sites like TrustPilot can be advantageous.
Remember to create and sign a legally binding contract that is acknowledged by both parties and validated by a legal entity if necessary. Pay careful attention to the terms; failing to comply could lead to complications.
Prior to commencing any renovations, ensure you are fully aware of the property’s dimensions, relevant building and environmental regulations, and that you have obtained all necessary documentation, including a building permit.
While follow-up inspections are uncommon, they can occur, so it’s wise to be prepared.
#5 – Paying the Contractor for Condominium Renovations in Bangkok.
Typically, contractors will request a small percentage of the total payment as an advance or deposit, and they may also ask for payment for materials prior to starting the work. This advance usually ranges from 25% to 40% of the total cost, which is generally considered reasonable. It is advisable not to pay the full amount upfront, as this could lead to delays in project completion in some instances.
Payments can be made via cash, wire transfer, or payment applications, but it is always prudent to collect receipts regardless of the payment method used. While some emerging contractors may offer discounts for larger projects, it is essential to compare quotes from 3 to 5 contractors before making a final decision.
If you have any uncertainties, consider engaging a managed property solutions company. These companies maintain a roster of verified contractors who operate under formal agreements. Managed property service companies typically ensure timely project completion, as they oversee project management and address any issues that may arise, alleviating the stress associated with condo renovations.
They ensure that the renovated condo is cleaned, furnished, and ready for occupancy as soon as you arrive.