LEGAL ADVICE

We would always recommend taking qualified legal advise when making house purchases. We can help you find a suitable lawyer if you do not already have one, to represent you.
Below are some guidelines to help you find your way around the Thai Legal System.
Although we all know construction is not always an exact science and small set backs can be expected, there are certain steps that you can take to ensure your purchase runs through as smoothly as possible..

1.    Study the contract carefully before signing. Obvious as it may sound, once signed your contract is binding. Understand your obligation and have a legal advisor check it for you.

2.    If you have a performance based payment schedule, always verify that the work is actually at the status agreed in your contract before making payment. We can do this on your behalf.

3.    If possible have an independent construction expert check the build quality during and after major work. Remember, faults are easier to correct if caught early. Hua Hin Property Care can arrange for independent reports for you. You can also use our "Construction Monitor" service.

4.    Ensure the land and house you are buying belongs rightfully to the seller. Whereas the laws in your home country may be protective to the buyer, unscrupulous sellers can sometimes circumvent Thai legal systems.

5.    Do not be afraid to ask searching questions when discussing the building work. Reputable builders will expect you to be cautious and will be eager to help. Check water supply, phone lines and even power. As construction sites edge further away from town, these commodities can become more expensive to supply. Do not take anything for granted.

6.    Consider who will look after your property if it is not your primary residence Whilst some developers offer maintenance services these may prove an expensive add on cost. Understand your seller’s responsibility after the handover has been made.

7.    Finally, check, check and check again. Do not be carried away with promises from a slick salesman. Remember, they will be unlikely to be involved past the purchase agreement. Hua Hin Property Care will be there throughout the transfer and offer customer support after the purchase is complete. We are in close contact with all our builders/developers.

8. Ask for contact details of satisfied customers. Recommendations from previous buyers cannot be over valued.

Legal Information

Which Thai laws govern foreign ownership and purchase of land in Thailand ?  
Ownership of land in Thailand is governed by the Land Code of BE 2497 (1954), the Civil and Commercial Code, the Land Reform for Agriculture Act BE 2518 (1975), and the regulations set forth by the Ministry of the Interior.
Are foreigners prohibited from owning land in Thailand ?  
Under strict application of the existing law it is officially prohibited for foreigners, including both individuals and juristic entities (e.g., companies or partnerships), to own land in Thailand . However, there are exceptions to the prohibition found in the law itself. There are also other methods of arranging for the purchase of land in Thailand .

According to section 97 of the Thai Land Law, the definition of a foreigner includes a Thai registered company or partnership in which more than 49% of the capital is owned by foreigners or of which more than half the shareholders or partners are foreign citizens. Obviously a registered company with 49% foreign ownership or less, is deemed a Thai Company and can rightfully own land.

Can foreigners own buildings even if they don't own the land?  
Although Thai law prohibits foreigners from owning land in Thailand, foreigners have the right to own buildings. If foreigners wish to purchase land in Thailand in order to build property, they have two options; first, forming a joint venture with majority Thai ownership, and second, procuring a long term lease with a right of renewal.

How can a joint venture be created to acquire land or property in Thailand ?  
One method foreigners can employ to acquire land or property is by forming joint venture companies with majority Thai ownership but with adequate safeguards to protect the foreigners' minority interest. If a foreigner plans to run a business in Thailand then he may purchase the freehold of the land through his Thai majority limited company. The land will be owned by the Thai Company, not by the individual.

How does a limited liability company allow foreigners to own property?  
Purchasing property with a limited liability company is a popular method for foreign investors as the Articles of Association can be varied to allow greater protection for foreign minority shareholders. The regulations vary throughout Thailand , but the Land Office generally requires that Thai nationals own a majority interest in a company if they wish to purchase land legally. It is recommended that you seek a legal representative who is thoroughly experienced in land and house purchase. Companies that are set up to try to circumvent the law can be open to close scrutiny by the Thai Government. In essence, if you set up a company with the express purpose to buy property, ensure that you run your company correctly according to Tabourompany/abour lunderstand uinderstand your responsibilities as director.

What about long term leases with rights to renewal?
Hua Hin Property Care Company suggests this option as the safest and easiest.
Because of the barriers in place to the purchase of land by foreigners, the most effective way to acquire land that a building resides on is to purchase the land on a 30-year leasehold with an option to extend the lease for subsequent 30-year periods. Leases are limited to 30 years, except on land for industrial purposes, which may be established for 50 years. Similarly, lease extensions are capped at 30 and 50 years respectively. Possession of the land leased for an already owned building is protected by the fact that the building rests on the land; ownership of the building is separate from the land and cannot be seized by the lessor once the lease expires. Leases exceeding three years are enforceable for only three years unless they are registered with the Land Department. Therefore, a 30-year lease must be registered with the Land department. In addition, a lease continues to be valid even in the event the property on the land is sold.

What are the different types of rights to private land?  
Land can be controlled through the right of possession or through title deeds and other documentation. Individuals who actually possess and use land may have the right to possess such land under the Civil and Commercial Code. The primary form of evidence for ownership of land iChanottle deedSorhanot or Nor.Sor 4). These title deeds must be registered at the Land Department in the province in which the land is located. It should also be noted that a parcel of land may be commonly held by several individuals. A person whose naChanotears on a Chanot, or Land Title Deed, has all the legal rights to that land, can produce the deed as evidence of ownership to Government officials, can prove the land has clearly defined boundaries, and can engage in legal acts upon that land as allowed by law.

Can the spouse of a foreigner still own land in Thailand ?
 Until recently, Thai nationals who married foreigners became ineligible to own land in Thailand . The understanding was that once the foreigner and the Thai national were married the land became community property; officials believed this was perhaps a too convenient way for foreigners to circumvent existing land law. At present, however, policy has changed; a Thai spouse is now legally allowed to own land in Thailand . The foreign spouse may be required to sign a letter declaring the property to be the separate property of the Thai spouse, consequently waiving any claim on the land.

Condo Purchase.
Real estate in Thailand is attractive for a variety of reasons. Whether you hope to spend your retirement in a leased condo or make real estate purchases as a short or long term investment; we can help. While there are a variety of restrictions on foreign citizens leasing and owning property and houses or condos in Thailand , there are an equal variety of legal opportunities. Let our experienced staff guide you through the intricacies of the process so you can focus your attention on the finding the property you want.

How is a Condominium defined by Thai law?  
According to the Condominium Act B.E. 2522 (A.D. 1979), a condominium is defined as a building that can have its separate portions sold to individuals or groups for personal property ownership.   

What classes of foreigners may purchase condominiums in Thailand ?
 Foreign investors as well as other foreigners may own condominiums in the Kingdom of Thailand under certain circumstances.  

 What types of Condominiums are available for foreigners to purchase?  
Certain condominium buildings allow for foreigners to purchase condos in free hold. The condominium buildings are located in specified metropolitan areas and may have limits on the amount of units available for sale to foreigners.

  What are the requiorganisationa foreign individual or organization to purchase a condominium in Thailand ?
 In order to purchase a condominium certain requirements must be met, for example: 1: A foreigner has permanent residence in Thailand in accordance with Thai Immigration Law, or 2: A foreigner is allowed into or resides in Thailand in accordance with Thai Investment Promotion Law, or 3: A foreigner or foreign legal entity who brings foreign currency into Thailand, or brings in Baht currency from the account of a person residing abroad, or uses foreign currency from their deposit account. This requirement is Dormally met by the presentation of a Dor Tor 3 form which is provided by the bank receiving an incoming remittance from abroad.

  Are there any restrictions to this ownership?  
In many areas of Thailand a foreigner or foreign legal entity can acquire up to, but not exceeding, 49% of the total floor area of the combined condominium units. However, more that 49% of ownership may be allowable in certain condominium buildings in Greater Bangkok and various other municipalities and districts according to Ministerial Regulations.  

 What is the most typical way for a foreigner to purchase a condominium in Thailand ?
 Most Foreigners purchase a condominium by showing evidence of an incoming remittance of foreign currency into their baDoraccount from abroad as demonstrated by a valid Dor Tor 3 form from a Thai Bank.   

Can ownership of a condominium be inherited by a foreigner?  
Property ownership of a condominium can be inherited if the heir to ownership meets one of the original criteria for foreign ownership. Otherwise the condominium must be sold within one year of inheritance.  

Is a lawyer necessary to purchase a condominium in Thailand ?
 A lawyer is recommended to review the documents concerning the condominium and to supervise the transfer.  
 Are condominium long-term leases available?
 Yes.
Condominiums may be leased to foreigners for periods of up to 30 years and may have options to renew. Leases of greater than 3 years are required to be registered with the Land Department

Note: The law periodically changes and we suggest you check with your lawyer for the latest regulations concerning property purchases.. Thank You.