Thailand real estate terms M
Letter M covers mortgage, market value, and maintenance fund. Title search at Land Office reveals registered mortgages. Transfer tax worksheets use multiple valuation bases. Condominium resale buyers must verify sinking fund and common fee status with the juristic person.
For broader context see our property hub and the full real estate glossary.
Must discharge before clean title transfer unless buyer assumes loan.
What buyer and seller agree; may exceed government assessment.
Check arrears and balance before resale condo purchase.
Common area maintenance billed by juristic person.
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Terms starting with M
Mortgage
A mortgage registers as an encumbrance on title at the Department of Lands, securing repayment of a loan. Buyers require discharge before receiving clean Chanote unless assuming the loan under bank approval. Title deed search is the first due diligence step for every resale.
Seller mortgages are common on Bangkok resales. SPA should require seller to clear the charge from proceeds on transfer day. Your lawyer verifies discharge appears on the new title deed issued to you.
Market value
Market value is the price a willing buyer and seller agree in arm length negotiation. It may exceed government assessment value used for withholding tax. All three figures appear on Land Office transfer worksheets: market price in SPA, registered value declared at counter, and assessment schedule from Revenue Department.
See letter G for assessment value detail and letter R for registered value at transfer.
Maintenance fund (sinking fund)
Condominium juristic persons maintain a sinking fund reserve for capital expenditures: lift modernisation, waterproofing, facade repair. Owners contribute at purchase and through ongoing fees. Resale buyers inherit the unit fund balance and any unpaid arrears from the seller.
Request juristic person confirmation of zero arrears before transfer. Unpaid fees can block registration the same way foreign quota issues do.
Three values at transfer
Expats negotiating Bangkok or Phuket resales should understand how each value type affects tax and registration.
| Value | Source | Typical use |
|---|---|---|
| Market value | Buyer and seller negotiation | Actual purchase price in SPA |
| Registered value | Declared at Land Office | 2% transfer fee calculation |
| Government assessment | Revenue Department schedule | Withholding tax for individual sellers |
Sinking fund due diligence checklist
- Request juristic person statement of sinking fund balance for the unit
- Confirm seller paid all common fee and sinking fund arrears before transfer
- Review AGM minutes for upcoming special assessments or major repair projects
- Compare sinking fund contribution rate with similar buildings in the district
- Verify no juristic person block on transfer due to unpaid fees
Legal context for foreign buyers
Mortgages register under Land Code and Civil and Commercial Code security provisions. Market and assessment values interact with Revenue Department rules at transfer. Sinking fund obligations arise from Condominium Act and juristic person by-laws binding on all unit owners including foreigners within the 49% quota.
Common mistakes foreigners make
- Assuming clean title without title search showing registered mortgage discharge.
- Using market price alone to estimate total transfer tax without assessment value review.
- Buying resale condo without checking seller sinking fund and CAM arrears.
- Expecting Thai bank mortgage as foreigner without verifying current BOT lending rules.
- Ignoring special assessment voted at AGM that will increase monthly fees after purchase.
Frequently asked questions
General answers for expats reading letter M terms in title search and juristic person letters. This is orientation, not legal or tax advice.
Q:What is a registered mortgage in Thailand?
A mortgage is a charge registered on title at Land Office securing a loan. It must be discharged before the buyer receives clean title unless the buyer formally assumes the loan, which is rare for foreign purchasers. Title search reveals active mortgages.
Q:Who pays to discharge a seller mortgage?
Negotiated in the sale and purchase agreement. Typically the seller clears the mortgage from sale proceeds at or before transfer. Your lawyer confirms discharge registration on the same day as ownership transfer.
Q:What is market value vs assessed value?
Market value is the price willing parties agree. Government assessment value is the official schedule used for certain taxes. Registered value is what you declare at Land Office. All three may differ. Under-declaring registered value creates legal risk.
Q:What is a maintenance fund or sinking fund?
Condominium juristic persons collect sinking fund contributions for major repairs such as facade work, lift replacement, and roof repairs. Each unit has a balance. Unpaid seller arrears can block your transfer.
Q:Can foreigners get mortgages in Thailand?
Some Thai banks lend to foreigners under strict conditions including visa type, income proof, and project eligibility. Bank of Thailand rules change. Most foreign buyers remit full purchase funds from abroad with FET documentation instead of local financing.
Q:How do I check sinking fund before resale?
Request a letter from the juristic person confirming fee and sinking fund status for the unit. Your lawyer includes this in due diligence before deposit. Letter Q covers quota verification from the same office.
Q:Does mortgage affect transfer fee?
Transfer fee calculates on registered value regardless of mortgage. Mortgage discharge is a separate registration step. Both must complete for buyer to receive unencumbered Chanote.
Q:Where can I read more Thailand property terms?
Browse our full A to Z glossary index and property hub for related guides on transfer fees, title search, and due diligence. Start at glossary hub and property hub.