How To Buy Property In Thailand

Buying a Condominium

It is easy for a foreigner to buy a condominium in Thailand and own it freehold, provided you fulfill the following conditions:

1. You must open a Thai bank account. To do this you must already be residing here and have a work permit. If you cannot fulill this condition, talk to us and we will find ways to help you.
2. You must bring in the full purchase price from overseas and deposit it into a Thai bank account
3. After you have selected the property you want to buy you should hire an experienced lawyer and get him to check that the title deed is free of any debts or other reasons that might stop a sale. He should also find out if it is Freehold or Leasehold (see Title deeds, an explanation).
4. The bank will issue a T.T.3 form certifying that the money you have brought into the country is for the purpose of buying a property. Should you buy a property for less than the money you have imported you are allowed to re-export the balance.
5. After signing the Sales & Purchase agreement prepared by the lawyer, and you have handed over the cheque for the purchase, you, the seller and the lawyer head over to the Local Land office to transfer the title deed. This can take up to one week in some cases, so be prepared to wait.
6. Once the condominium is in your name you can live there, rent it out, make any changes to the interior you like and do anything else as long as you don't contravene the Juristic By-Laws governing the management of the building.

Buying a House, Land or other type of Property

Foreigners cannot own land in Thailand, but you can own the property built on the land. This creates a strange situation which baffles many people when they first read about it. But there is a reasonably simple solution.

If you open a Thai company with you and your foreign partners owning 49% of the shares, and up to 6 Thais owning 51% (the Thais must constitute a majority of the shareholders), you can then buy property through the Thai company.

Are you likely to have problems in the future if your Thai partners decide to lay claim to the property?

Not if you hire an experienced business lawyer to set up the company in your favor. We can't go into to detail here, but there are ways of protecting your investment and ensuring you have control over your investment.

An additional safeguard would be to have a reputable professional specialist (i.e., law firm) draw up suitable paperwork to show that your company borrowed the money from you to buy the land, which is then mortgaged to you until the loan is repaid. This mortgage should then be registered with the Land Office at City Hall to ensure the paperwork is complete and your interests protected. Your lawyer will advise and help you ensure you are fully protected under Thai law.

Don't try doing it yourself to save a paltry few thousand Baht -- get a professional to do it all for you, and protect your most significant investment.

Of course, you could avoid the costs & hassle by putting the house in your wife/girlfriend's name. This will undoubtedly make her very happy -- even happier than the visits you made to her favourite gold shop and motorcycle shop (which are the usual precursors to visiting the real estate agency.)

However, what happens a year or two down the road when you have a major disagreement about something, or her Thai 'husband' shows up (since they all seem to have them squirreled away somewhere)? You, like so many before you, may find yourself standing out on the street with only your passport in one hand and a bag of clothes in the other...and your life savings gone, with no legal recourse. This is when your 'significant other' triumphs over your 'significant investment.'

Getting a Mortgage or Loan to buy Property

Financing Your Purchase: Until late 2005, it was impossible for foreigners to borrow money to buy property, or to mortgage existing property in Thailand. This has changed as some foreign financial institutions are moving into Thailand and working with the Thai banks to offer foreiners loans. They require a minimum 30% deposit on a house purchase in many cases, but this is flexible and depends on your financial situation, your credit rating, your job and and many other factors.

In addition, if you own property overseas, these lenders will consider giving you a mortgage on that property to buy property in Thailand.

A registered Thai company can buy property and apply for loans. If you own a percentage (up to 49%) of the company, you could qualify for a loan.

If you are married to a Thai and they have a salary that will enable them to repay a loan, you may want to consider letting your Thai partner apply for a loan instead and you can act as guarantor. There are many options open to you today. How does this work? Contact your real estate agent for more information.

 Back to Top of Page

Visit these directories for links to everything you are looking for