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How can I buy an apartment, condominium, land or a house in Thailand?

Although the law does not allow foreigners to own land in Thailand, they can own the buildings on the land. However, there are exceptions:

1. A foreign company may buy land if it has Board of Investment (BOI) privileges and the land is part of the project (usually manufacturing). Ownership is tied very strictly to the BOI terms and conditions agreed with the company.
2. A new law (Land Code Section 96, 2002) allows a foreigner to buy up to one Rai (half an acre) of land to build a house in approved metropolitan areas like Bangkok and Pattaya, providing they also invest at least 40 million baht for five years in government bonds, recognized property mutual funds or BOI projects. Permission for this must be obtained from the Interior Ministry and the ownership is monitored by the Land department.
3. Companies and partnerships also fall under the strict laws on land ownership by foreigners. A foreigner can only own up to 49% of a company and this restricts the ownership of land as well. It is often difficult for even a company with 51/49% ownership unless you use an experienced real estate lawyerlike Somphob & Associates Law.

Can you give me practical advice on the best way to buy property?

There are a number of possibilities. Somphob & Associates, will be able to advise you on the best solution for your needs:

1. Leasehold: Thai law allows a maximum lease period of 30 years, with the possibility to extend for a further 30+30 years. At the end of each term, both parties must register the renewal with the Land Department and pay government fees, including stamp duty. This gives the lessee "ownership" of the land. The downside is that the Lessor may not wish to renew, or the law may change to your detriment in the future. Any capital you invest into leased property is therefore liable to be lost. In addition, leased land is not easy to trade.
2. Nominee: You can nominate a Thai to own the property for you. Definitely not recommended.
3. Nominee with a mortgage: You can lend the price of the property to a Thai under a legally executed mortgage or loan agreement. There is a small fee payable at the Land Office to register it. The advantage to this is that the nominee cannot sell the property until the mortgage or loan has been repaid in full. Your lawyers should also set up a Last Will & Testament when they set up this type of transaction so that if the foreigner dies first the mortgage or loan is discharged in full and the Thai can inherit the property. If the Thai nominee dies first the foreigner can inherit the land, but must sell it to a Thai within 12 months. Foreigners buying property in Thailand should always write a new will to avoid any future problems for the Executors and Beneficiaries.
4. Freehold: Foreigners can buy and own condominiums Freehold, giving you full ownership rights to buy, sell, trade and bequeath your condominium. However, the law states that foreigners may only own up to 49% of any condominium building. So make sure your lawyer checks this before buying a property. The seller must also provide a document from the Juristic management office stating that the condominium is free from all debts.
5. Company Ownership: A highly recommended way to buy and own property is by setting up a company when buying a house, land, or other property that is not a condominium. An experienced real estate lawyer can help you do this and ensure that you control the property without interference from your nominee Thai partners.

What is the difference between a Lease and Leasehold?

When you rent an apartment, you sign a Lease. Typically, a lease is for a minimum 12 months in Thailand, although some landlords may consider a shorter or longer term. When you sign a lease, you are required to pay a 2 month deposit which is refundable when you move out, less any charges for damage to the property.

There are 2 types of Land Title Deed: Freehold and Leasehold. Leasehold means that the buyer is only leasing the property from the land owner for a pre-determined period of time. Thai law stipulates that a property sold with a Leasehold title deed is only valid for up to 30 years. Renewal for a further 30 years with an option for a further 30 years only is at the discretion of the lease holder (land owner). Property owned by the Crown Property Bureau is always Leasehold. Some private property owners may also sell their property with a leasehold title deed. These are the conditions in operation today (2005), but they may change at any time in the future. Obviously, buying leasehold property has its drawbacks.

A Freehold Land Title Deed, on the other hand, gives full ownership rights to purchasers, including the right to buy, sell, or lease the property, pass it on to their heirs, and to develop the property within the guidelines under Thai law. Foreigners may own a condominium freehold; with full rights of ownership. You should always consult a qualified real estate lawyer before signing any purchase agreement.

If I buy property and want to live in Thailand, how can I do that?

You can apply for a visa, depending on the type of residency laws you would like to stay here under. For example, if you plan to buy a property and run a business, you can apply for a business visa. Or if you plan to retire you can apply for a retirement visa. The answers to this question are far too complex to go into here. We recommend you talk to your lawyer about this before buying any property.

What is a condominium? What is an apartment?

A condominium is like a flat (apartment) you can own in common with other owners of units within a high-rise with complete facilities. This means that each tenant is a shareholder in the building and they pay a monthly management fee based on the square meter size of their apartment to maintain the building and public areas.

Foreigners may own a condominium freehold; with full rights of ownership.

An apartment is a building owned by one owner who lets out units within the building on a short or long-term basis.

What is a Townhouse?

A townhouse is a single vertical dwelling, in a block of similar verticle dwellings, each owned by one owner.

How can I decide where to live?

Your agent should be able to suggest the best place to live, based on the information you give him.

How do I overcome the language barrier?

Learn the language at a local language school. There are many schools around the Kingdom. However, most condominium and apartment building managers speak at least some English and should be able to understand you.

How do I pay the utility bills?

If you are renting, most buildings will pay the bills for you and add them to your monthly rent. It is a good idea to find out the cost of utilities before you move in so that you know how much you will have to pay. If you are living in a house, there are a few methods of payment you can use. For example, most utility bills can be paid direct from your bank account and the receipts sent to your residential address. Nowadays, you can also pay utility bills at any 7/11 store. When buying, you should also inquire about telephone and electricity connection fees.

How safe is it to live in Thailand?

Thailand has an enviable reputation as a very safe place to visit and to live. The people are friendly, and there is relatively little crime against foreigners. However, like anywhere else in the world, there is always the potential for crime. If your agent feels an area you visit is not safe, he should advise you and suggest alternatives. We all want you to enjoy your stay here!

You have probably read the recent news about the Muslim unrest in the three southernmost provinces. The government is working to solve this problem. Despite the rhetoric of a few Muslim hot heads, relations between Muslims, Thais and foreigners throughout Thailand have always been friendly and tension-free. Knowing some of the people involved in security work in the Kingdom, we are confident that Thailand will continue to remain a safe and pleasant country to live in. More....

Will I need to bring my own furniture? And can I buy quality furniture in Thailand?

There are plenty of fully furnished apartments and condominiums available. If you don't plan to stay in Thailand permanently, it may be better to leave your furniture in storage back home. It will probably be too heavy for the tropics anyway. Even if you plan to rent or buy a house, you can always get one fully furnished. If you prefer to furnish it yourself, your agent can advise you on the best places to shop.

What sports and exercise facilities are available?

Thailand offers a wealth of sports, including golf, jungle trekking, para-gliding, diving, fishing, golf, squash, jogging venues, and so on. Serviced apartments and condominiums usually have their own exercise rooms and swimming pools. Ask your agent to show you properties with the facilities you want.

I have heard there are bad floods here sometimes. Will I have to worry about them?

In the bad old days floods were a problem every year. Some years were worse than others. But since the Bangkok government has installed anti-flooding measures flooding is not a big problem in Bangkok any more. The drainage system has been upgraded and is well maintained so that even the worst floods will drain away within a few minutes or hours if we have a particularly heavy downpour. If you plan on living outside Bangkok your agent can advise you on the best places to live to avoid the problem.

How fast can I find somewhere to live?

This depends on how much effort you are prepared to put into the search with your real estate agent. Search through the internet and email some and then see what responses you get. Choose the ones that respond quickly offering to help.

What about schooling for the children?

Thailand boasts some of the best international schools in the region in all the most highly populated centers like Bangkok, Pattaya, Chiang Mai, and Phuket. Fees are high, but so are their teaching standards. In addition, there are some excellent private Thai schools. Your agent will tell you which schools are located in the area you would like to live.

What is the minimum rental contract, and what are the terms and conditions?

Most rental periods are for one year, although some shorter terms are available. In most cases you will need to pay a 2 month deposit, and one month rental in advance when you sign the contract. Sometimes, especially for longer contracts, the landlord may require 3 months deposit. The deposit is refundable when you move out, although the landlord may deduct expenses for any damage to the property during your tenancy.

I'm moving to Thailand, which is a completely new country with different customs. How can I make the move as easy and pain-free as possbile?

If you plan to stay here for more than 1 year and you have never been here before, we recommend you take a cross-cultural seminar that will explain the many strange and different things you will encounter in your daily life.

Do I have to pay an agent any additional fees for finding me a property in Thailand?

Not usually. The seller or rentor will pay your agent's fees.

What is the procedure if I buy a Condominium?

The procedure for buying a condo is extremely easy. The first step is to select the property you want to buy and ensure that it has a Chanote (or at least a Nor Sor 3 Gor) freehold Land Title Deed. Your agent will negotiate the best possible price for you and the seller. When you have an agreement with the seller, ask for a copy of the Land Title Deed. The buyer pays for the lawyer's fees. The seller (usually) pays the transfer fees and taxes, as well as the agent's commission. Then follow these steps:

1. Visit your lawyer with the seller and your agent where you lay out the terms of the deal, and give the lawyer all the documents, including a copy of your passport and bank account details from you, and the land title deed. At this stage, you may be asked to give a deposit to the seller, usually 20% of the purchase price. You will be issued with a receipt that states you will forfeit the deposit if you pull out of the deal for any reason. The seller should be required to repay your deposit in full plus 50% if they pull out of the deal for any reason, or if the land title deed does not clear at the land office. Your agent should ask the seller to allow the lawyer to hold the money in escrow until the deal is completed. Once these arrangements you can leave the rest of the work to the lawyer until you are ready to sign the sale papers and pay the purchase price.
2. The lawyer will prepare a Sales and Purchase Agreement ready for both parties to sign.
3. The lawyer will send one of his staff to the land office to check that the land title deed is free and clear from any encumberances, debts, etc. He will advise if there are any problems with the title deed.
4. Meanwhile, your agent or lawyer will take you to the bank to open a bank account if you don't already have one. New restrictions have been imposed on foreigners opening bank accounts in Thailand, but your agent should be able to help you overcome these legally.
5. You will transfer the full cost of the condominium to your bank account, less any deposit you have already paid.
6. The lawyer will accompany you to the bank when the money arrives to work with the bank to get the proper paperwork required for a condominium purchase.
7. The lawyer will call another meeting when everything is ready to conclude the deal. You normally meet at his office, sign the papers, and hand over to the seller the cashier's cheque (or money in whatever form you are paying).
8. When this is done the lawyer will accompany you and the seller to the land office to complete the transfer of the land title deed to you, the new owner. This should only take a few hours, but it could take up to 4 or 5 days in some circumstances. Don't worry. Once you and the seller have signed all the sales and purchase papers and handed over the money the property is legally yours and you are fully protected under Thai law.