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Your guide to legally and successfully become a Thailand property owner

If you are a foreigner wanting to buy property in Thailand, and you are not certain as to how it’s done. Here you will find the basic breakdown of what needs to be done and a general guide on how to buy property in Thailand.

Step 1: Seek the help of a property agent in Thailand

If you want to buy land in Thailand the first thing to do is to find the help of a local property agent that is familiar with the area and knows how to communicate in Thai, and the agent will save you time when it comes to finding a property that suits your needs.

Purchasing property directly from the owner will not always save you money, because most quality properties in Thailand are offered at a fixed or similar price, besides the benefit of using a local agent is that the agent knows what a fair price is. Therefore, an agent will get you the best possible price for the property

Step 2: Hire a property lawyer and plan your strategy.

To buy property in Thailand we recommend that you hire a Thai property lawyer that knows the Thailand Real Estate Law, because there are certain restrictions when it comes to foreigners buying property in Thailand, a lawyer will help you figure out a strategy that suits your needs. Remember that you are spending your hard earn money to buy property in this beautiful tropical paradise therefore you need to make sure you are in good legal standing and not wasting any money.

Step 3: Verify the Title deed

You should search for the title deed to verify that the seller has a clear and legal title deed of the property you are planning to buy before you sign or enter into a contractual agreement.

It is very easy to verify the title deed, all you have to do is go to the Land Office and do a title search, this search will trace the land back to the original owner and will reveal any mortgages or liens. Furthermore, it will reveal if the property has any rights reserve to access your property, zoning restrictions or environmental restrictions,

Step 4: Paying taxes snd title transfer

When you feel satisfied with a property and are ready to move forward, you will be asked to make a deposit showing your good faith then the process can continue

When you place a deposit, the seller will reserve the property for you and start the process by drafting the purchase contracts. The money will not be refundable unless you specifically write a ¨get-out¨ clause

Step 5: Review the contract before signing.

It is a good idea to have your property lawyer look over any contract before you sign it, just to make sure you are properly covered in case of any eventuality.

If you are planning to buy a property that is under construction The seller usually has a property contract prepared already, therefore you should ask your property lawyer to look over your contract, to make sure you are protected in case there is a delay in the construction a proper remedy should be clearly stated in the contract.

Commonly Asked Questions about Buying Property in Thailand

Can foreigners buy a condominium unit in Thailand?

Yes! there are very few requirements for a foreigner to buy a condo in Thailand. Foreigners can purchase a condo or enter into a long lease agreement, also known as "Leasehold". Foreigners can gain ownership of a condo within the set foreign ownership quota of a condominium. Meaning that by law foreigners can only own up to 49% of the total units of a condominium project. The remaining 51% can be acquired with a leasehold. This gives the owner of the leasehold rights of ownership of the unit for a set period of time, which is a maximum of 30 years with an additional 30 years renewal.

What are the taxes and running costs associated with owning a condominium?

There is a property tax associated with owning a condo the amount of the property tax depends on the property price and size. All owners and co-owners will also have to contribute to the general upkeep costs of the building, as well as the common areas. Your monthly fee also known as the common area maintenance fee or CAM fee will be calculated based on the total square meter of your condominium unit.

Example: 60 baht per sqm, per month, condo size 100 sqm, total yearly fee = 60-baht X 100 sqm = 6,000 baht per month X 12 months = 72,000 baht per year.

Condominium buildings also have a special reserve fund for major repairs and upgrades known as the “Sinking Fund Fee".

Can foreigners buy land in Thailand?

The short answer is no, the law prohibits foreigners from buying land in Thailand. However, there are a few other ways you can own land if you are a foreigner, one of them is for a foreigner to obtain a long-term lease on the land (for a period not exceeding 30 years each term).

The foreigner should apply for the construction permit to build the house in their name. This way the foreigner owns the house and has a secured long-term lease on the land. The lease can be written with the option to reassign to another person, this is done in case you want to sell as well as the ability to sublease and with a purchase option, in case the law ever allows a foreigner to own land in Thailand.

Are foreigners allowed to build and own any structure on land?

In Thailand, a building is considered as being a part of the land over which the building is constructed. However, a building may be considered a separate part if a tenant builds a building while under a leasing agreement over the land. Therefore, a foreigner may own any building on his rented land.

If your spouse is Thai, and you are planning to build a house on his/her land, you are recommended to sign a lease agreement with your spouse making you a tenant. This way, both of you have ownership of the building but not the land.

How to Buy Property through a Thai Company?

Some property buyers may prefer a holding structure, with more ownership rights than a leasehold. In such a case, it is possible to open a Thai company for property acquisitions, this method sits in the "grey area" of the law. The Thai government and the Land Offices that oversee properties, do not encourage this practice. The authorities' main concern is the unauthorized use of "Nominee Thai Shareholders", who could be fake investors, used to facilitate property purchase. However, if buyers comply with the law, using real shareholders, this option offers a good amount of indirect ownership and control.