How to buy a property in Thailand
Buying a condominium in Thailand is perhaps the simplest and easiest option available to foreigners. The only restrictions on purchasing a condominium in Thailand, are that the percentage of units sold to foreigners cannot exceed forty nine percent (49%) of the total number of units in the condominium block; and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a "Foreign Exchange Transaction Form".
This is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand. You must request a Foreign Exchange Transaction Form from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium in Thailand, and the Foreign Exchange Transaction Form must specify that the remittance is solely for the purpose of purchasing a property in Thailand - Code 5.22.
Purchases of Condominiums in Thailand by foreign individuals come under the jurisdiction of the Condominium Act B.E. 2535 (1992).
The owner of each Condominium in Thailand is issued with a certificate of unit ownership. The certificate also has a statement saying exactly what percentage of rights over the common areas of the building each owner has.
Land owning laws in Thailand:
Ownership of land in Thailand is governed by the
Land Code BE 2497 (1954), the Civil and Commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the regulations set forth by the Ministry of the Interior.
Although Thai law stipulates that a foreigner may not own land in Thailand in his name, he has the right of ownership of buildings only. If a foreigner wishes to purchase land in Thailand to build a property, he can lease land. The land is purchased on a 30-year leasehold with an option to extend the lease for further 30 year periods. Possession of the land is assured by virtue of the fact that property occupies the land. The lessor cannot seize the property upon expiration of the lease, as the property is separate from the land.
In order to be enforceable, any lease for a period longer than three years must be registered at the Land Department, which involves payment of a registration fee and stamp duty based on a percentage of the rental fee for the whole lease term. The original registered lease remains in force and effect even if the property is sold. Both parties can contractually agree to renewals, but this right can't be registered at the Land Department.
There are many different types of land titles in Thailand , the majority of which do not allow the legal right to build a house on that land. We only recommend one title:
CHANOT (Land Title Deed) is a certificate for ownership of land. A person having their name shown on the deed has the right to the land and can use it as evidence to confirm the right to Government authorities. This land has been accurately measured using GPS to set the area and boundaries of the land. The boundaries of the land are indicated by numbered posts. Any legal acts may be done immediately, as per the right of ownership. Land partition of more than 9 plots must be carried out according to the Land Allotment Law, Section 286.