Buying or selling property in Thailand
In Thailand, property transfers are regulated by the Civil and Commercial Code, Land Code, and Condominium Act. These laws govern the legal aspects of property transfers, which include the procedures, requirements, and rights and obligations of the parties involved in the transaction. As a foreigner, these become much more complicated and bureaucratic compared to western countries.
Business in Siam has managed property transfers for foreigners in Thailand since 2013
The Types of Property in Thailand
Each type of property has its own specific legal requirements and regulations for transfer.
The Legal Regulations for Property in Thailand
Land in Thailand is regulated by the Land Code. The Land Code defines land as “the earth and all things attached to it, including buildings, trees, and crops.” Land in Thailand is classified into four types: public land, government land, state land, and private land. Private land is owned by individuals or corporations and can be bought, sold, or leased.
The ownership of Condominiums in Thailand includes the right to use common areas and facilities, such as swimming pools, gyms, and parking areas. Condominiums are regulated by the Condominium Act, which sets out the legal requirements for ownership, transfer, and management of the property.
Houses in Thailand are typically built on private land and are subject to the same legal regulations as land. However, if the house is part of a housing development or a gated community, it may also be subject to additional regulations under the Community Title Act.
Procedures and Requirements for Property Transfer in Thailand
The process of transferring property in Thailand involves several steps and requires the fulfillment of certain legal requirements.
We have simplified the procedures required for property transfer in Thailand below:
- Negotiate and sign a sale agreement
- Pay a deposit
- Conduct due diligence
- Transfer ownership
- Legal capacity
- Title deed
- Taxes and fees
Foreign Ownership Restrictions
Foreigners are generally restricted from owning land in Thailand, but there are some ways to legally own property in the country:
Condominiums: Foreigners can own up to 49% of the total area of a condominium building in Thailand.
Leasehold: Foreigners can lease land or property for up to 30 years, with an option to renew for an additional 30 years.
Thai company: Foreigners can own land through a Thai company, but the company must be at least 51% owned by Thai nationals.
BOI promotion: Foreigners who invest in certain business projects approved by the Board of Investment (BOI) may be eligible to own land as part of the promotion.
Lawyers and Editors
It is recommended that the buyer and seller hire experienced lawyers and editors to assist with the property transfer. Lawyers can provide legal advice, review and draft contracts, conduct due diligence, and facilitate the transfer of ownership. Editors may also play a role in the property transfer process by reviewing and editing contracts, deeds, and other legal documents to ensure accuracy and clarity.
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Business in Siam provides independent advice and services for companies and individuals, on all aspects related to Thailand