Acquiring Property In Thailand
So what are the legal issues under Thai Land Law of acquiring land rights or purchasing property in Thailand?
House sitting on the hilltop surrounded with fruit trees
Sourcing for a most suitable piece of property has to be meticulous and time consuming. Why? Because it involves a huge chunk of your fortune to say the least, is it a scam property that you have to watch-out, how environmentally suitable for residential and planting and to some, compatible fong-shui (geomancy), protecting your legal ownership rights, and prime location with easy accessibility.
Protecting your purchased land and property rights
As a foreigner, there are several reasons to buy land or property in Thailand – Investments, Residence or Retirement or set-up a farm. However, there are many foreigners who are confused by the conflicting information and deceptive claims in the Internet. There are specific legal issues under Thai land law determining the power of non-Thais to buy or gain rights to real estate and property. Below is some of the essential check-list.
Five different ways of acquiring land rights or purchasing property in Thailand
Summer home, resort or retirement villa
1. Land leases
Thailand real estate law limits land ownership rights to non-Thais; it is possible to hold 100% interest in a land lease. Thailand lease law permits a 30-year maximum lease period, with potential of renewing the lease for an additional 30 year period.
While you legally lease the land, all the buildings you improved or built, are yours freehold. This means that once the lease expires, the owner of the land must purchase the building(s) base on an independently and lawfully valued price or negotiate another lease period.
2. Company ownership
Thai registered companies with majority Thai ownership are able to buy land in Thailand. It is normal for foreigners to take on an interest in real estate as minority shareholders in a Thai majority company.
3. Investment
Base on an investment of 40 million Baht, Thai real estate law permits foreigners to buy and own a limited amount of land for five consecutive years on condition that the land is used for residential purposes.
4. Thai spouse
A Thai spouse of a foreigner may be allowed to buy land or property in Thailand in his or her own name. Notwithstanding, the married couple may be asked to sign declarations at the Land Department to state that the funds used are the separate property of the Thai spouse, thus waiving any claim on the land or property by the non-Thai spouse. Problem may arise in a divorce proceeding because it may be difficult for the non-Thai spouse to prove that the land was marital property. However, a skillfully drafted Thailand prenuptial agreement may minimize the risk to the non-Thai spouse.
5. Usufruct habitation and superficies
Non-Thai may possess a life term interest in certain types of property rights in Thailand. A usufruct, is a right to use and profit from the land, is similar to leasehold but is non-transferable with some essential differences.
Title status of the land you should possess
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"Chanote Ti Din” – gives you undisputable possession because the land has been precisely surveyed.
“Nor Sor Sam” or Nor Sor Sam Kor” – are land title deeds of clear records of ownership and may be sold or leased but they are less accurately surveyed than Chanote titles.
“Sor Kor Nung, Tor Bor Tor Hoc and Tor Bor Tor Ha” are basically squatter’s rights registered at the district office for a small fee. The land cannot be legally sold nor can you build on the land. Be a wise foreigner and ignore the “Sor Kors and Tor Bors”.
“Sor Bor Kor” – although it is true title deeds, accurately surveyed and pegged like a Chanote, it can be mortgaged and developed BUT cannot be leased, sold or transferred.
Chanote and the Nor Sor Sam Kor – are the only registered right of ownership or lease titles to possess as a foreigner.
Be aware of the title status of the land you are purchasing
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One thing you need to be aware of is the title status of the land you are purchasing. Most land has not been surveyed or has been questionably titled. Do not prepare it yourself but get a professional lawyer’s advice and don’t sign on any document or hand over money until you understand fully and are pleased with what’s written on the lease agreement.
Your Dream Property
This 8.5 acre of pristine, tranquil and exclusive property is perfect for your Summer Home, Resort or Retirement Villa.
