Buying freehold condos v house and land
Foreigners can outright own a condominium in Thailand 100% freehold.
Imagine a building has 100 units. 51 of those units must be owned by Thai nationals. A maximum of 49 of those units can be owned 100% freehold by foreign nationals.
If a building’s foreign quota limit is reached, the only way to purchase a freehold condo at that building is to buy from a foreigner with an existing freehold title.
Alternatively the foreign national can choose to buy from a Thai national but only on a leasehold ownership.
Foreign nationals cannot own land in Thailand as freehold.
The most common practice for foreigners buying house and land in Thailand is to do a leasehold structure of a maximum of 30 years with the landlord. This is a watertight contract that is given by the local land office and the foreign national can then technically own the land for that period of time.
The lease can also be extended by two terms of 30 years each, giving the lessee a total of 90 years. This has to be a separate contract between landlord and lessee. Should you wish to sell the land and house in future before the leasehold term expires, you may do so freely to a Thai or foreign national.
The landlord must sign the freehold land transfer to the Thai buyer or accept a new term of 30 year lease if it is a foreign national who wishes to apply for a new leasehold term of 30 years. The foreigner purchasing from you can also simply take over the existing leasehold term if they wish. Meaning if you have owned the property for 5 years, the buyer will be taking over the remaining 25 years of the leasehold term.
Even though foreign nationals may not own land, the building itself can be owned outright by a foreigner.
It is also possible for foreigners to setup a Thai company in order to purchase the land (and house) in the name of the Thai company, however it is highly advisable to always consult with a reputable, qualified Thai lawyer that can speak English. Spending a small amount of money for peace of mind can avoid having to spend a lot of time and money in future when you try to sell your house and you find out that it wasn’t done properly the first time.
It is best discuss all details with your lawyer to have a full understanding of the situation before committing to a purchase.
Selling property in Thailand
Selling property in Thailand can be challenging, but not necessarily difficult.
Part of the reason why it is of paramount importance to consult with a reputable, qualified lawyer when you BUY the property, is so that you do not run into problems when you want to SELL
your property.
Selling with SPS Realty Thailand guarantees the best service and advice available in Hua Hin.
Selling house and land v selling a condo:
Selling house and land means you have a number of things you need to know and documents you need to have before you sell. All of these documents are in Thai, which is another reason why it is necessary to have a Thai lawyer to either translate the documents for you or at least indicate with English markers
which documents are which;
– original land title deed with the current land owner’s name or the lessee’s name on the back in Thai
– blue book or as they say in Thai, tabian baan of the property with the residential address
– sell and purchase agreement from the land office in Thai
– construction permit that is in Thai
– Thai ID of land owner or passport of the lessee.
Depending on the type of ownership there will be different documents required in each case. Contact one of our experienced consultants to find out more.
Selling a condo requires you to have the following documents:
– original land title deed with the current land owner’s name or the lessee’s name on the back in Thai
– blue book or as they say in Thai, tabian baan of the property with the residential address
– sell and purchase agreement from the land office in Thai
– letter from the local juristic office confirming there is no outstanding debt regarding maintenance fees etc (only required once you have a confirmed buyer)
– letter from the local juristic office confirming there is still available allocation in the foreign quota ownership for the development (only required once you have a confirmed buyer)
– at the time of transfer there are a few more details required. Contact one of our experienced consultants to find out more.
