Condo transfer fee is a type of legal cost in Bangkok. This fee entails a mandatory charge during the transfer of ownership.
Authorities such as the Land Department impose this fee.
This fee differs from stamp duties and withholding taxes. Stamp duties involve documents, while withholding taxes pertain to income from property sales.
Condo transfer fees, on the other hand, focus on the legal change of ownership.
Popular features of condo transfer fees include a percentage of the assessed property value, calculation based on official property value, and applicability at the time of ownership transfer. Examples include the charge being 2% of the assessed value, the value determined by the Land Department, and the fee’s imposition during property handover.
Common features encompass shared responsibility between buyer and seller, negotiability, and inclusion in property sales agreements. For instance, buyers and sellers often split the fee, can negotiate who pays, and include this fee in their sales contracts.
Unusual features entail varying rates based on location, applicability to foreign buyers, and occasional exemptions. Some districts in Bangkok may offer lower rates, foreign buyers might face different conditions, and certain transactions may qualify for exemptions under specific circumstances.
Unique features include the potential adjustment of rates based on government policies, the requirement for payment at the Land Department, and the direct impact on total property acquisition cost. The government may adjust rates to stimulate the real estate market, payment must be made directly at the Land Department, and this fee significantly affects the overall cost of acquiring a condo.
Condo transfer fees offer a clearer and more direct association with property ownership change than similar charges such as stamp duties or withholding taxes. While stamp duties and withholding taxes relate more to the documentation and income aspects of property transactions, condo transfer fees explicitly address the legal recognition of a new owner.
For more detailed explanations and definitions related to real estate transactions, including condo transfer fees, visit our glossary about Bangkok real estate.