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Saturday, March 24, 2007

Tambon Administration Organizations has been recruited as brokerage agency for second-hand homes in Thailand

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Tambon Administration Organizations has been recruited as brokerage agency for second-hand homes in Thailand


The government is encouraging Tambon Administration Organizations TAO)to act as brokerage agencies to sell used homes, according to the Real Estate Information center (REIC).

REIC director Pongsak Chewcharat said it would be easy for TAOs to sell properties because of their close relationship with the local people in target areas.

The TAO would receive 3% commission on sales, the standard industry rate.

In the first phase, the REIC trained TAO staff and installed computer programs in 311 local administration offices in Nonthaburi, Pathum Thani, Samut Prakan, Nakhon Phthom and Samut Sakhon. It plans to expand to 1,457 local administrations and TAOs this year.

Target areas will cover 17 provinces including Greater Bangkok and provincial cities in five regions.

The REIC is conducting a survey of residential projects including condominiums and serviced apartments that were for sale or rent from February to March this year.

As well, each Tao would collect a database of building permits in its area, said Pongsak.

“The project will help local administrations provide more efficient services to the public through a computer system that can be linked with other information as a part of the governmental data exchange project,” he said.

“The second-hand home market can boost the property market as sales of every 100 used homes will stimulate sales of 40 new units.”

He added that the government was drafting regulations on standard prices for second-hand homes to help buyers and sellers, expected to be effective within the third quarter of the year.

Currently, the government stimulates the used-home market through tax incentives such as a reduction of transfer fees from 2% to 0.01% and mortgagee fees from 1% to 0.01% until Dec 31, 2007.