[email protected]
Two Pacific Place Building, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Thailand
As a foreigner, you cannot own land in Thailand. Instead, you can register a 30-year lease for a house that stands on the land.
The most popular properties with expats are apartments and condos in busy cities, party resorts or historic and cultural centers. It is wise to hire a local lawyer to guide you through the legal complexities of buying property in Thailand.
Buying land in Thailand is a complex process and requires meticulous planning. Whether you are buying a house or a condo, you should hire a professional to verify the legal grounds of your purchase and ensure that it meets Thai property laws. This can help avoid pitfalls, such as land encroachments or coastal erosion and flooding issues. It is also essential to consider any potential environmental risks that may impact the price of your home.
Despite the fact that foreigners are not allowed to own land in Thailand, there are ways around this restriction. One option is to use a leasehold agreement, which allows foreigners to own the structure of the building but not the land on which it stands. These agreements typically run for 30 years and can be extended for two additional periods of 30 years. Another method involves establishing a Thai company for the purposes of acquiring land. Although this method is not officially recognized by the government or land offices, it can be effective in reducing closing costs.
A foreign buyer can also purchase land or a house in Thailand by using a private limited company that has mixed Thai and foreign ownership. This approach can be risky, however, and it is best to consult with a lawyer before proceeding. It is also recommended that you obtain a mortgage to finance the purchase of your property in Thailand. Most banks in Thailand offer mortgages for up to 80% of the property’s asking price. However, the requirements for eligibility are strict and include minimum investment amounts and restrictions on historical investments.
Condominiums in Thailand offer owners full ownership of their units with a title deed similar to strata titles. Unlike other types of property, condos do not include the underlying land on which they are built.
Foreigners can own condominiums in Thailand but they must have their transactions overseen by a lawyer who is familiar with the process. This is essential for avoiding problems such as unforeseen legal issues with the property or exceeding the 49% foreign ownership limit.
Before purchasing a condominium in Thailand, it is important to evaluate the location based on proximity to amenities and transportation options. The size and layout of the unit should also be considered, as well as the security measures in place. It is also a good idea to visit the property in person to assess its condition and make sure it matches your expectations.
Buying off plan is an option for many buyers as it allows them to get the best possible price per square meter. However, before making the final payment, it is advisable to pay for reservation of the apartment with the developer and to meet with a property lawyer who specializes in real estate acquisition and will do a Due Diligence on the condo (see below). This process includes checking with all related offices such as Land Department, Municipality office, Court, Consumer Protection etc.
The most common way for foreigners to buy houses in Thailand is by buying a building on a long-term lease (typically 30 years) while the land is owned by someone else. Some owners will also register a house separate from the land in their name to avoid legal issues and have access to mortgages.
It is important to understand the property ownership law in Thailand and your options before putting down a deposit or signing any contracts. A lawyer can help you with this and ensure that any contract you sign is valid and meets all legal requirements.
If you are purchasing a building in Thailand, it is advisable to have a professional surveyor carry out a thorough property contract review. This will ensure that all legal procedures have been followed and that the transfer is complete. The surveyor will also check the property for any potential problems, such as structural damage or flooding.
It is a good idea to work with a real estate agent who can find a range of properties that match your needs and budget. They will serve as a liaison between you and the seller and will ensure that your interests are protected throughout the process. They can even assist you with getting a mortgage loan, although the process may be more complicated than in your home country due to stricter mortgage lending regulations.
Buying leases is a popular option for foreigners looking to circumvent the restrictions on foreign land ownership in Thailand. Leasehold properties are sold to foreigners on a long-term basis, typically up to 30 years with renewal options. Leaseholds are registered with the local land office and government fees are levied at the end of each term.
A leasehold contract will clearly outline the terms of the sale, including the maximum term and renewal options. The contract will also specify the rental amount, payment schedule (monthly or annual) and penalties for late payments. In addition, it is advisable that the contract include provisions for a dispute resolution process.
It is important to note that a leasehold contract that extends beyond three years must be registered with the land department in order to be legally enforceable. This is something that many people do not realise, and skipping this step puts your contract at risk.
Buying leases is one of the only legal ways for a foreigner to own property in Thailand that does not require them to purchase the freehold land title deed (Chanote). However, buyers of leasehold properties are still required to conduct thorough due diligence and undertake thorough title searches prior to making any commitments to buy. It is also recommended that buyers use a reputable lawyer who specialises in Thai property law to review any contracts and ensure they meet legal requirements.
