Thailand Property Info
It is not difficult to own property and land in Thailand , there is a relatively simple
process to follow. To own land you have to set up a Thai company. That
is not a daunting prospect, many developments have them pre-set up for
foreign ownership otherwise there are plenty of American and English law
firms who have a whole division just for setting up Thai companies at an
extremely modest cost. The advantage of owning a Thai company is that
when you come to sell the property or land there is no capital gain as you
simply change the ownership of the shares.
There has never been a difficulty owning property in Thailand by means of
a long leasehold without the need to set up a Thai company and many
foreigners take this, the easiest path. The longest single lease that can
be registered in Thailand is 30 years, this is for historic reasons, however
you can pre-register 3 x 30 year leases in one go ie. effectively one 90
year lease. Written into the leaseholds there is normally a provision by
which further 30 year leases can be registered once the previous lease
has expired thereby providing a lease for perpetuity like the 999 year
lease system in the UK which is for most purposes has the effect of
owning a freehold.
Depending upon the development sometimes there is a facility by which
means once the whole development has been sold out, the freehold is
passed to the individual lessees, each lessee owning an equal share in the
freeholds so they effectively become their own landlord.
A couple of years ago Thailand introduced the Freehold Condiminium law
which has been relatively successful but has not been adopted by all
developers as it has the effect of producing a two-tier ownership structure
within the same development. Under this law 49% of the condiminium
development can be sold outright to foreigners so these tend to go
relatively quickly simply because many foreigners are familiar with
freehold ownership though ironically in many parts of the world including
the UK it is not possible to own the freehold of an apartment.
We hope this has assisted you in your understanding of Thai ownership but we
can assure you thousands of foreigners including ourselves have bought here
very successfully.
Tropical Homes Real Estate
Condominium Purchase:
Purchasing a condominium is the easiest, simplest transaction. Foreigners can hold up to 49% of the units in a condominium freehold while in certain condominium blocks a full 100 % of the units can be owned by foreigners on a freehold basis. One important requirement is that the foreign currency funds for the purchase have been remitted from abroad and correctly recorded as such by a Thai bank.
LAND MEASUREMENTS IN THAILAND
Land in Thailand is measured in Talang Wah, Ngan and Rai.
1 Talang Mett =1 Square Meter =10.7 Square Feet
1 Talang Wah = 4 Square Meters = 42.7 Square Feet
100 Talang Wah = 400 Square Meters = 4,277 Square Feet =1 Ngan
400 Talang Wah =1,600 Sqare Meters =17,108 Square Feet = 4 Ngan =1 Rai
1,000 Talang Wah = 4,000 Square Meters = 42,772 Square Feet =10 Ngan = 2.529 Rai =1 Acre
10,000 Talang Mett =100 Acre = 6 Rai and 1 Ngarn =1 Hectare
The land title deeds in Thailand
There are 5 different land titles in Thailand . Only 2 titles are recommended. Nor Sor 3 and Chanote. It is highly recommended that a proper land search at the land office is carried out prior to making an offer.
- Sor Kor 1 This document means that land occupants are occupying or making use of certain land plots, whose ownership has not been claimed by any entity. The document does not indicate legal possession of the informer so one cannot transfer the ownership of the property to any one else. The Sor Kor 1 is rare now as the government's land ownership legislation has covered most area of the country.
- Nor Sor 2 states the government's permission for person or legal entity to make use of land temporarily. Need to utilize at least three-quarters of the land plot within three years after the document issuance. This right is non transferable. At the finish, land occupants can seek the right to demand higher privileged title deed.
- Nor Sor 3 is a governmental letter certifying a utilization of certain land plot by certain people and that the plot of land has been surveyed and its official map created.
- Nor Sor 3 A is similar to the Nor Sor 3 certification. The only difference is the map survey of the land plot based on an aerial-viewed photograph of the land.
- Ownership Title Deed or Chanote(Nor Sor 4) is the ultimate certification of land ownership. Holders of the title deed have full rights to transfer or sell the properties and to bar other parties from violating their rights over the land protected by the ownership title deed law. 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 name appears on a Chanote, or Land Title Deed, has all the legal rights to that land, can produce the deed as evidence of ownership to Government officials.
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