Applying for a Land Allocation License
Property developers in Thailand who are planning to construct a housing community must first request a land allocation license from the Land Department. The property developer must file an application according to the Land Development Act of B.E. 2543 (2000) which requires the following evidence and details:
- The title deed or other document evidencing rights in land must indicate that the applicant has rights to the land without there being any encumbrance registered on the land, except for a mortgage. In any case, any other interests in the land held by third-parties must be fully disclosed.
- In the event that there is a mortgage registered on the land, the consent of the mortgagor is required with information indicating how much of the debt will be paid from each allocated plot of land. In the event that a land allocation license is issued, the title deeds for each and every individual plot of land shall indicate the mortgage and the amount of money that shall be paid to satisfy the debt from that particular plot.
- A plan of the allocation of the land into individual plots with estimates of the areas of each plot.
- Plans and details regarding the construction, provision, maintenance of public utilities and adjustments to the land, including any other public services or adjustments to the land that may be necessary according to the specific requirements of the locality.
- The name of the bank or other financial institution that will be guaranteeing the construction and maintenance of the public utilities or adjustments made to the land.
- The method of distributing the individual land plots, including the method of payment.
- The standard form sale and purchase agreement for the individual land plots.
The government committee must consider the application within 45 days from the receipt of the application by the Land Department. If the committee does not complete the consideration within the aforementioned period of time without a justifiable reason, then it shall be deemed that the committee approves of the land allocation plans. However, in the event that the committee does not approve of the application, the applicant has the right to appeal to the central committee within 30 days from the date that the ordered has been issued. In the event that the committee approves of the application, it shall issue a land allocation license within 7 days from the date that the committee issues the order.
Land allocation laws are complex. Property developers are advised to consult with competent legal counsel in order obtain guidance in applying for a land allocation license.
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