How is Varline Agencies (Thailand) Co Ltd different from others in our field?
At Varline we pride ourselves on our transparency and integrity. We are a properly registered company with all the obligations that go with it.
We believe the Seller should receive full market value for the property and never mark up prices instead we encourage the seller to list at a more realistic market price. We will of course carry out the instructions of both Seller and Buyer during discussions however we will always seek to act in a fair and equitable manner.
A good deal is one where both parties are happy!
Our team check everything with the land office and will help prospective buyers to reach their decision by arranging expert opinion, for example: land surveys, meetings with the local authority, the electricity company etc.
Lastly, we encourage Buyer and Seller to meet at the earliest opportunity so that they can discuss and agree any issues that are of concern face to face.
Varline presents only the information provided by the seller. In the case of a lot of land sales in our area, the land is, basically, farmland. There may or may not be electricity, there may or may not be municipal water, there may or may not be public access. Whatever we know, we tell you.
If you are in any doubt about the suitability of the property for your purpose please ask us and we will find out or connect you with someone who can.
Do I have to pay a deposit?
This is a matter of negotiation between Seller and Buyer. In many cases the Buyer is ready to complete the purchase within a short period and two parties simply agree to meet at the Land Office a few days later.
If the Buyer requires a longer period, the Seller may require a deposit. Usually this is 10% however if a longer period is required a bigger deposit may be necessary.
What fees and taxes are there?
There are currently 4 relevant taxes. The Land Office or your lawyer can advise on these:
Transfer Fee: 2% of the appraised value of the property.
Stamp duty: 0.5% of the agreed sale price of the property.
Business Tax: 3.3% of the sale price. This is particularly relevant if the Seller has owned the land for less than 5 years but there are other instances when this is applicable.
Withholding Tax: The rate of this tax is variable if the seller is an individual however if the seller is a company, the tax is fixed at 1% of the sale value.
Who pays which tax has become a point of negotiation and occasionally confusion as "all taxes shared 50:50" is a common outcome without any knowledge of these taxes.
At Varline we will always specify clearly which taxes are included in any sharing agreement. Moreover, once all details are known we will contact the land office to get the exact amounts in advance so that all parties know what is required.
Please note this information is given for guidance only and is based upon our experience and information available in the public domain at the time of writing. For certainty, please talk to your legal advisors.
Can Foreigners own land?
The simple answer is "no".
Land can only be owned by a Thai person or company.
If you are neither we strongly recommend that you consult your legal advisors.
Do I need a lawyer?
We would always recommend that anyone, particularly a foreigner has independent legal advice.
The process of buying and selling land is actually very straightforward however everything, written and spoken, is in Thai.
At Varline we always assist our Clients through the buying process however this assistance is a part of our service and is not a substitute for professional legal or technical advice.
We always advise that buyers check the facts with the relevant authorities and professionals before making their final decisions and we are more than happy to arrange meetings and introductions.
How do your fees work?
We receive a commission from the Sellers of the property. The amount of commission is agreed in advance and is payable by the Seller to us on completion of the sale.
We never mark up the prices of properties and all financial transactions between Seller and Buyer are concluded at the Land Office in person and not through third parties.
Deposits are always held by the Seller and not the agent.
I am an agent. Can we work together?
We welcome genuine introductions from other agents subject to signed commission sharing agreements.
1. We do not accept multiple agents or chains.
2. As a Limited Company, we are liable for VAT and we require that co-agents meet their share of the VAT payable on the commission received. In the case of a Thai company, we will require a copy of the PP20 and a proper VAT invoice for the agreed commission.
3. We never mark up prices and we will not work with any agent who does. We work only on a fixed commission agreed beforehand with the Seller.
Please contact us if you would like further information.