How is the 2% transfer fee calculated?
Last updated: 6 Aug 2025
376 Views
Condo or house transfer fees are expenses that real estate buyers should be aware of before deciding to buy. The condo or house transfer fee, or more commonly known as the property ownership transfer fee, is currently 2% of the appraised value or sales price.
The Land Department's 2% condo or house transfer fee, based on the highest price, is designed to prevent buyers and sellers from understating prices during transfer transactions, minimizing fees.
Therefore, if the "appraised value" is higher than the "house sale price," the condo or house transfer fee is calculated based on the Treasury Department's appraised value. However, if the "house sale price" is higher than the "appraised value," the condo or house transfer fee is calculated based on the house sale price.
For example, if a townhouse with a sales price of 2.5 million baht and an appraised value of 2 million baht, the 2% condo or house transfer fee is calculated based on the 2.5 million baht sales price, equaling 50,000 baht.
___________________________________________
The proof of purchase price is on the contract page.
Many people may ask, how does the Land Department know? What is the actual purchase price of a home between the buyer and seller? The quick answer is that during the transfer of ownership, there will be some form of evidence clearly stating the property's value. This evidence is based on that evidence.
Case 1: Buying a residential property in a project
The actual purchase price of a home will be stated in the sales contract signed with the buyer by the project. If the purchase price exceeds the appraised value, the condo or house transfer fee will be charged on top of the purchase price.
Case 2: Private sales, without intermediaries
On the day of the transfer of ownership, a sales contract must be signed, mutually agreed upon by the buyer and seller. In the case of a bank loan, many banks will facilitate the preparation of the sales contract and provide the actual figures for the sale.
However, if the home is sold in cash, without a bank loan, the buyer and seller will usually check the appraised value from the Treasury Department. Many buyers and sellers will write a sales contract that is slightly lower or higher than the appraised value to save on condo or house transfer fees. However, if the price is significantly lower, be cautious as land office officials may object.
Regarding buying a home with family members, including parents, children, or siblings, if the transaction involves a sales transaction (a child buying from a father), If the buyer purchases a condo or house (or purchases from a relative) rather than through inheritance, the process is similar to Case 2: a sales contract must be signed, clearly stating the price, and the normal 2% condo or house transfer fee must be paid.
Case 3: Buying a house through an intermediary
Most often, an intermediary, who is a representative or broker, facilitates the sales contract between the buyer and seller at the actual agreed-upon price. The 2% condo or house transfer fee will be in accordance with the Land Department's terms and conditions.
___________________________________________
Who Pays the Condo or House Transfer Fee?
Who Pays the 2% condo or house transfer fee? In real estate transactions, the payment is usually split 1% between the buyer and the seller.
However, this depends on the agreement. Sometimes, developers offer promotions, paying the entire 2% condo or house transfer fee for the buyer. Sometimes, individual sellers offer to pay the entire 2% condo or house transfer fee themselves.
Sometimes, when an individual purchases a second-hand home from an individual and negotiates a significant price with the seller, they offer to cover the entire 2% condo or house transfer fee. When calculating the cost, it's a good deal. Or a 2% home transfer fee. In some cases, banks offer promotions to attract customers to borrow money, with many banks offering to cover the entire 2% condo or home transfer fee.
However, from the seller's perspective, most sellers include the 1% condo or home transfer fee in their own share of the sale price. Whether they agree to pay only their own share or share it with the buyer depends on the agreement.
The 2% condo or home transfer fee is only one of the costs in real estate transactions. Real estate transactions also involve other costs, such as mortgage registration fees, stamp duties, specific business taxes, and income taxes.
___________________________________________
Government Measures to Reduce Transfer and Mortgage Fees
Another government measure for home buyers in 2025 that significantly impacts homebuyers is the reduction of transfer and mortgage fees. The Cabinet meeting resolved to reduce the registration and legal fees for residential properties in 2025.
The property transfer registration fee will be reduced from 2% to 0.01% of the appraised or selling price. and reducing the mortgage registration fee for real estate from 1% to 0.01% of the loan amount.
This applies only to simultaneous transfer and mortgage registration for residential sales, including detached houses, duplexes, townhouses, commercial buildings, and condominiums (both new and resale). This applies only to sales prices and appraised value of no more than 7 million baht, and the mortgage amount does not exceed 7 million baht per contract. This does not include sales of individual units.
___________________________________________
Source: DD Property
The Land Department's 2% condo or house transfer fee, based on the highest price, is designed to prevent buyers and sellers from understating prices during transfer transactions, minimizing fees.
Therefore, if the "appraised value" is higher than the "house sale price," the condo or house transfer fee is calculated based on the Treasury Department's appraised value. However, if the "house sale price" is higher than the "appraised value," the condo or house transfer fee is calculated based on the house sale price.
For example, if a townhouse with a sales price of 2.5 million baht and an appraised value of 2 million baht, the 2% condo or house transfer fee is calculated based on the 2.5 million baht sales price, equaling 50,000 baht.
___________________________________________
The proof of purchase price is on the contract page.
Many people may ask, how does the Land Department know? What is the actual purchase price of a home between the buyer and seller? The quick answer is that during the transfer of ownership, there will be some form of evidence clearly stating the property's value. This evidence is based on that evidence.
Case 1: Buying a residential property in a project
The actual purchase price of a home will be stated in the sales contract signed with the buyer by the project. If the purchase price exceeds the appraised value, the condo or house transfer fee will be charged on top of the purchase price.
Case 2: Private sales, without intermediaries
On the day of the transfer of ownership, a sales contract must be signed, mutually agreed upon by the buyer and seller. In the case of a bank loan, many banks will facilitate the preparation of the sales contract and provide the actual figures for the sale.
However, if the home is sold in cash, without a bank loan, the buyer and seller will usually check the appraised value from the Treasury Department. Many buyers and sellers will write a sales contract that is slightly lower or higher than the appraised value to save on condo or house transfer fees. However, if the price is significantly lower, be cautious as land office officials may object.
Regarding buying a home with family members, including parents, children, or siblings, if the transaction involves a sales transaction (a child buying from a father), If the buyer purchases a condo or house (or purchases from a relative) rather than through inheritance, the process is similar to Case 2: a sales contract must be signed, clearly stating the price, and the normal 2% condo or house transfer fee must be paid.
Case 3: Buying a house through an intermediary
Most often, an intermediary, who is a representative or broker, facilitates the sales contract between the buyer and seller at the actual agreed-upon price. The 2% condo or house transfer fee will be in accordance with the Land Department's terms and conditions.
___________________________________________
Who Pays the Condo or House Transfer Fee?
Who Pays the 2% condo or house transfer fee? In real estate transactions, the payment is usually split 1% between the buyer and the seller.
However, this depends on the agreement. Sometimes, developers offer promotions, paying the entire 2% condo or house transfer fee for the buyer. Sometimes, individual sellers offer to pay the entire 2% condo or house transfer fee themselves.
Sometimes, when an individual purchases a second-hand home from an individual and negotiates a significant price with the seller, they offer to cover the entire 2% condo or house transfer fee. When calculating the cost, it's a good deal. Or a 2% home transfer fee. In some cases, banks offer promotions to attract customers to borrow money, with many banks offering to cover the entire 2% condo or home transfer fee.
However, from the seller's perspective, most sellers include the 1% condo or home transfer fee in their own share of the sale price. Whether they agree to pay only their own share or share it with the buyer depends on the agreement.
The 2% condo or home transfer fee is only one of the costs in real estate transactions. Real estate transactions also involve other costs, such as mortgage registration fees, stamp duties, specific business taxes, and income taxes.
___________________________________________
Government Measures to Reduce Transfer and Mortgage Fees
Another government measure for home buyers in 2025 that significantly impacts homebuyers is the reduction of transfer and mortgage fees. The Cabinet meeting resolved to reduce the registration and legal fees for residential properties in 2025.
The property transfer registration fee will be reduced from 2% to 0.01% of the appraised or selling price. and reducing the mortgage registration fee for real estate from 1% to 0.01% of the loan amount.
This applies only to simultaneous transfer and mortgage registration for residential sales, including detached houses, duplexes, townhouses, commercial buildings, and condominiums (both new and resale). This applies only to sales prices and appraised value of no more than 7 million baht, and the mortgage amount does not exceed 7 million baht per contract. This does not include sales of individual units.
___________________________________________
Source: DD Property
Related Content
