Hua Hin Property Purchase Guidelines

HUA HIN PROPERTY PAYMENT TERMS The majority of properties in Hua Hin are sold off-plan or in a partly built state. Property investors should study the terms of payment carefully. Buyers will always be asked to pay a reservation fee. This secures the property which will then be taken off the open market. Then, some time (usually 30 days) is given to allow for legal work to be completed before the first payment is due on signing of the contract. Once the first payment is made, the following payments will be split according to construction milestones. Here is an example: Signing of agreement: 20%  Completion of villa footings or pilings: 20%  Completion of columns, floor slabs and roof frames: 20%  Completion of villa shell, including external doors and windows: 20%  Substantial completion of the villa: 20% In Thailand, all foreigners wishing to buy real estate must transfer the funds to buy their property from abroad.

SINKING FUND In a new villa or condominium project, each owner will pay an initial amount into a sinking fund on transfer of ownership of the property. This will be used for major renovations in future and repairs which are outside the operating budget, such as repainting the external walls of the apartment blocks or replacing the pool pump. COMMON AREA MANAGEMENT COSTS In a villa or condo development, specifically appointed property managers, such as CBRE Thailand, will normally be responsible for managing all aspects of the common areas. This service normally includes: 24-hour on-site security  Maintenance and irrigation of all common area landscaping  Cleaning of all the common areas i.e. stairways, paths, management office  Cleaning of the communal swimming pool, including chemicals  Management office, estate manager, technician and all associated ancillary costs  Insurance for the common areas which shall include the structure of each apartment block  Electricity and water supply in the common areas up to the point of connection to the individual property units  Refuse collection  Pest control in common areas Accounting, including annual auditing The property management company reports directly to the owners’ committee monthly, providing regular financial statements identifying all relevant expenses and reporting on issues concerning the management of the common area of the property. This system ensures that resort condo and villa developments are managed transparently and effectively, ensuring that the investment made by each owner is protected and enhanced.