Things to Consider Before Buying a Property in Thailand
Thailand is a popular real estate market for foreigners, especially those who want to retire there. However, there are some things to consider before buying a property in Thailand.
First, it is important to research the local area. It is also a good idea to use a lawyer to help you understand the legal process.
Long-term leases of land
Long-term leases of land are a viable option for non-Thai nationals looking to have a legal and long-term interest in property in Thailand. The law allows foreigners to hire immovable properties for up to three years, but any agreement over 30 years must be written in Thai script and registered at the Land Department. Property taxes for leased land are the same as those for freehold property.
Leasehold contracts are the best way for a foreigner to own a piece of property in Thailand, as they do not have the same restrictions as a limited company. However, developers often include for-him benefit clauses in their contracts that violate laws and are not permitted by the land office, such as prepaid renewal options or a transfer option to a freehold title.
In many cases, a person will lease a piece of land for 30 years and construct a home on it. This is the preferred legal structure for foreign retirees. However, this type of arrangement must be combined with a right of superficies.
Condominiums are the most popular form of property in Thailand and are a great choice for many foreigners looking to invest. They are the only type of property where a foreigner can own a freehold title and are a safer alternative to buying a house with a leasehold. However, the process can be a bit complicated, and it is important to consult with a lawyer before making any final decisions.
A condominium is a building that contains individual units, each of which has its own owner. The owner holds a legal freehold title over the private residence, and has a share in the common areas of the condo. Foreigners can buy up to 49% of the units in a condominium development, provided that the building meets certain criteria.
Purchasing a condominium in Thailand can be complicated for foreigners, but it is possible to make the process easier with the help of a lawyer and real estate agent. A good real estate lawyer can guide you through the process of finding a property, applying for a loan, and preparing for a settlement date.
Foreigners can own land
As the Thailand economy recovers, the country’s real estate market is becoming more attractive to foreign investors. However, it’s important to understand the rules and regulations regarding foreign ownership of land in Thailand before investing. Using an experienced Thai-based property advisor can help you navigate the complexities.
While it is not normally possible for foreigners to own land in their own name, there are some exceptions. One option is to purchase a condominium unit with a freehold title, which allows foreigners to own up to 49% of the total building. Another option is to form a Thai limited company that owns the landownership, while the foreigner maintains substantial control.
A foreign spouse may own land in the name of their Thai spouse, but they must declare that it is a personal investment and that they will not sell or mortgage the property. In addition, they must also submit a joint declaration that they used their own funds to purchase the property.
It’s important to do your research before making a deposit on a property in Thailand. This will help you avoid any pitfalls and protect your investments. It’s also a good idea to seek out the advice of a professional real estate agent and a Thai lawyer. They will assist you with the process and perform due diligence on your behalf.
The first step is to check the land title deed and the company affidavit. This will show whether the developer legally owns the land or if it is mortgaged. You should also note if the land is under construction.
After obtaining the land title deed, you can submit it to the Land Department along with the reference letter (one form is given for each overseas transfer) and credit advice from the bank receiving the money. The reference letter must stipulate that the money is for a condominium purchase and include the name of the buyer, project name, address, unit number and size.