In Thailand, a foreigner may only own a condominium in his/her own name. If the foreigner wishes to acquire land and build a house, he/she should obtain a long term lease on the land, typically 90 years (registered 30 years initially and two renewals of 30 years each). The foreigner should apply for the construction permit to build the house in their own name. This way the foreigner owns the house and has a secured long term lease on the land. The lease is written with the option to reassign to another person (if you sell), ability to sublease and with a purchase option (should the law change in the future to allow freehold ownership by the foreigner). Therefore, a lease is the most common legal method for the foreigner to acquire property in Thailand.
See also :
 Buying a Condo in Thailand
Selling your Condominium
FAQ on Buying Property in Thailand
A comprehensive examination of title deed recorded at the Land Department should be done. You need to verify that the Seller has clear and legal title of the land before you enter into a contractual agreement. The title search will trace the land to its first possession. This investigation will also verify the right to access to your property; provide the residential zoning, environmental and planning codes in the area and show any registered mortgage or liens on the land. It is a good idea to make sure that you can build a structure on the land.
See also:
Categories of Title Deeds
Convert Rai to Square Meters
Convert Rai to Acre
When you feel satisfied with the property, you will be asked to make a deposit to show your good faith to continue the process. In return, the Seller will reserve the property for you and start the process by drafting the contracts for purchase. Unless you write specifically a “get-out” clause in the deposit agreement, for example “subject to clear title” or “subject to agreement on the contract terms,” the money deposited is non-refundable.
Now you are ready to proceed to acquire the property upon verification of a clear title. The Seller will have the contracts prepared for you. Since the Seller will write the contracts, it is highly recommended that you have a lawyer or solicitor review the terms and conditions. First, you want protection for yourself should there be a delay in the property being built. A proper remedy should be stated in the contract. Second, the Seller will state a penalty if you are late with your payment. This should be fair and reasonable to both parties. Finally, your payment schedule should be reasonable and practical. Normally, a first payment is 25 percent. Thereafter payments are made on a progressive basis: 25 percent when the roof is on, 25 percent when the door and windows are secure; and 25 percent when the fixtures and fittings are completed. |
