What are the expenses on the day of condo transfer?

► Condo transfer fee 2% of the condo’s appraised value or purchase price. The higher price will be used for the fee calculation. In most cases, the buyer and the seller will equally share the cost or the seller may pay all fees, depending on the agreement.
► Mortgage fee is the fee for registering with the Land Department. In the case that buyer applies for a loan from a bank, the fee is 1% of the mortgage amount or loan amount whereby the buyer must be liable for the said fees. In the case that the buyer pays in cash, he/she is not required to pay this fee.
►Stamp duty will be levied at 0.5% of the selling price and will be levied from the higher price, the same as the transfer fees. If you pay the Specific Business Tax, then you don’t have to pay Stamp duty. You pay only one type of the tax.
► Specific Business Tax will be withheld based on the regulations of the Revenue Department. 3.3% is charged for those who have acquired the condo transfer for less than 5 years. If the ownership holding is more than 5 years or your name was added into the house registration for more than 1 year, they will be exempted from the Specific Business Tax but they have to pay the Stamp duty.
► Income tax will be levied according to the regulations of the Revenue Department and will be paid for on the transfer date after being informed by the officer.
Other expenses:
1. Common Fee is calculated according to the size of ​​the condo unit (square meter), for example, the common fee is 50 Baht/Month/Sq.m. If the size of a condo unit is 40 square meter, the annual common fee can be calculated as follows (common fee) x 40 (room size per square meter) x 12 months (1 year).
2. Electricity meter security deposit
The security deposit for the Electricity meter will be paid for on the day of transfer. The cost is between 2,000 – 7,000 Baht. The fee depends on the size of the electricity meter and the conditions of the condo project.
3. Fire insurance premium expenses
The expenses will be paid on the day of condo transfer, normally for those who bought the condo through a bank loan and the fire insurance premiums must be paid to the bank. And the bank will be the beneficiary of the insurance if unexpected events happen. The insurance limit shall be paid off the loan. The terms of paying this type of expenses on the day of condo transfer is subject to the bank’s regulations.

4. The Sinking Fund Fee is a common expenses that the condominium juristic person has set aside or collected as a reserved fund to be spent in long-term administration and management project which is charged according to the size of the condo unit.

The expenses paid by the Seller:
– Transfer of ownership (50/50)
– Stamp duty or Specific Business Tax
– Withholding Tax

The expenses paid by the Buyer:
– Transfer of ownership (50/50)
– Mortgage fee
– Fire insurance
– Appraisal fee
– Expenses that must be paid to the project (funds, common fees and security deposit for electricity and water meters)
*** Terms and conditions that are agreed upon.
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