Real Estate Investments in Thailand For Foreigners

A building in Thailand is different from the land it can own, and ownership can be moved, apart from the land. However, buildings in Thailand (other than units in listed condos) do not have document titles.

Based on the decision of the Supreme Court; A house or building is considered in Thailand as an immovable property separate from the ground. Proof of building ownership in Thailand is:

1. the name of the person above the building permit is considered the owner of the building, or 2;
2. the name as the buyer on the official home official sales agreement previously regarded as the owner.

As a separate fixed property, it can be moved apart from the ground. This must be written urugan semarang and registered by the competent authority (ie the Thai Land Department). Be careful that the house book or blue book or issued by the local Administration Office and not the Defense Department, therefore this book is certainly not proof of ownership.

When a foreigner buys a property in Thailand, his share of land can be sold under a 30-year lease agreement (because a foreigner can not own the land) and the house can be sold free of land. This means that the land lease agreement and the sale and purchase agreement for the house are offered by the seller, both determining the terms of the lease and the terms of the sale of the building / house.

Both the lease of land and the transfer of the house must be registered at the Department of Land and the taxes must be paid.

When purchasing in development of ‘plan’ and not a sales agreement for the house, in addition to a land lease, a separate construction agreement may be offered (in this case building permit must be on behalf of a foreigner).

Realty property sellers in Thailand often offer rent for ‘land and houses’, but this is the most unfavorable structure for foreigners – and from a legal standpoint not a recommended one (ie this is the weakest structure). To increase foreigners’ interest in immovable property in Thailand, the ‘right to superficies’ in the Department of Land (registered right to own buildings on someone else’s land) improves the shareholder’s position on expiration or lease termination.

The right of ownership of a building on the land of another person is directly related to the right to use or possess the land of others. You may lose your rights under a land lease agreement, but your rights under the right of superficies may remain in effect and the right to compensation for the value of the home may remain.

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