Before you go ahead and purchase property in Thailand, it is important to get thoroughly acquainted with the laws and regulations. Knowing the laws governing buying land versus buying improved property will help you to decidehow to proceed. It is important to note that Thai law prohibits foreigners from purchasing or acquiring land in their own name.
If you are interested in purchasing land space only keep reading to find out the dos and don’ts. If you are interested in purchasing built up property, the stipulations are different in some cases. It is important to be diligent in order to protect your investment and become informed of your rights. The following tips will guide you through how to proceed with either choice.
When Buying Land
As a foreigner, you cannot make a direct purchase of land in Thailand.There are however provisions for acquiring land in Thailand if that is what you are in the market for. On one hand, you may choose to explore a long term lease agreement (up to 30 years) which will allow you to construct a building and own the structure on the land in your name, without actually owning the land. This can be achieved by obtaining a permit to carry out construction in your name.
Alternatively, if you have set up a Thai Limited Company, you may use the company’s name to purchase the property in your behalf.
A non-Thai national who has become married to a Thai national, may choose to come into ownership of land through their spouse. This however means that the non-Thai spouse will have to relinquish rights to the land and the transaction will have to be done solely in the Thai spouse’s name. This means that the Thai spouse will be viewed as the sole owner and in the event of a divorce, the land will not be viewed as marital property.
After deciding to proceed with the land acquisition process, another important thing to consideris how the legal process works. This involves doing aproperty search, which will give an early indication as to what properties you may want to consider and which ones you want to exclude. This search will reveal comprehensive information regarding the history of the land’s ownership, give verification that the seller is legally authorized to sell to you and also reveal any financial holds or obligations related to the property. This search will also reveal valuable information regarding zoning, and environmental and planning codes, should you decide to build on it. This information can be obtained through the Land Department.
When Buying Improved Property
When purchasing a condominium in Thailand, one prudent tip to follow is to retain a property sales agent. This allows you to be able to obtain unbiased advice on the best locations for purchase and the best prices. Your agent will be able to negotiate a better price for you than you would be able to obtain on your own if you were dealing directly with the seller or developer. Under Thai law there is a rule that no more than 49% of the units in a condo project should be owned by foreigners. Your agent will ensure that this is adhered to and that you do not waste time or money in an investment that is not feasible.
When seeking to buy a house or villa in Thailand, the process of acquisition is not as straight forward as when purchasing a condominium. The stipulations are similar to when purchasing land. You will need to do a property search then enlist the services of a real estate agent as well as a reputable lawyer to take you through the process. They will be able to provide vital guidance and take you seamlessly through the process. Thai law does not allow foreigners to own a house or villa registered in their name hence the necessity to seek legal counsel. You lawyer will also be able to provide you with advice if you will require financing for the sale.
Obtaining reliable legal representation is the number one and most important tip before purchasing property in Thailand. Enlisting the services of a reputable real estate lawyer who has firsthand knowledge of the applicable laws is a must. This lawyer will also be able to help you clarify the tenets of the contract, and if you are given both English and Thai contracts, ensure that both are in agreement before you sign. It is also good to retain a separate lawyer for yourself, as using the same lawyer as your seller is a conflict of interest. Buying a house or villa in Thailand, like land, requires the services of a lawyer.
Author Bio – This guest post has been written by Patrick Swan to promote https://www.cbre.co.th