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Own House in Thailand

House in Thailand

On the subject of buying property in Thailand there are many exotic stories and rumors.
However, the facts are quite clear.
To prevent a sellout of the still relatively cheap land to foreigners,
the Thai government has strictly limited the sale of land to foreigners.
Nevertheless, there is of course an interest from the Thai side in foreign investments,
and real estate can also for foreigners be secured reliably within the legal rules.

Most important, of course in real estate business are the right partners.
Particularly in Thailand real estate should be purchased through established brokers.
Especially since the cost of a broker in Thailand is generally borne by the seller
and the brokers assistance is free for buyers!
Established brokers know the market and prices, as well as the legal background,
and examine the ownership situation before preparing a purchase.

To purchase a property of short-term acquaintances (No. 1 cause of legal problems)
should be prohibited, especially if one has not mastered the language and does not
know the legal situation.

The legal background for real estate business in Thailand is far from exotic.
The system of official documentation of property ownership was taken over almost
100 years ago from Germany and is well organized.
Each district has its own Land Registry. Here the official land register is held,
with a separate page for every single land plot which is registered in the district.
On this page of the land register all relevant information is listed about the property,
type of title, ownership, encumbrances, rights of way, etc.
An original copy of the Land Registry page is given as a land title to the registered owner.
The land register is public and can be viewed by anyone.

The main differences for foreigners to land law in most Western countries are:
1. Foreigners can’t purchase land.
2. The land plot and the development of the property are legally separate from each other.

This legal situation allows foreigners to legally purchase a building and
long-term lease the plot where the building is build on.

There are several different ways for foreigners to secure a property.
Qualified real estate agents and lawyers can find within a consulting session the best way
to own a house in Thailand, matching the client’s particular request.
Consultation with a real estate specialist before purchasing a property is the best way to
avoid problems later.
The most widely used two forms for foreigners of real estate acquisition are:

Individuals who only want to purchase a property for private use, can purchase the building
and long-term lease the land plot.
Individuals and businesses who want to purchase property as an investment or to operate a
business in Thailand, a Thai company should be registered, which is entitled to acquire land.
With proper consultation and preparation an acquisition of property in Thailand is a safe
investment with appreciation of value mostly well over 10% pa.

Asia House and Lots Team


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