Thai legislation is relatively clear. Foreign ownership of land is generally not permitted, but houses and apartments can be fully owned by foreign citizens or companies. Forming a company to own land is prohibited, regardless of what unreliable parties may claim. A basic understanding is always necessary when you intend to acquire a home in Thailand.
To give you an insight into Thai property law, we have summarised some legal basics about land, houses and apartments in Thailand below. The rules are in practice fairly clear, but there are often different beliefs about what is right and wrong.
For your security as a prospective buyer, it is important to know that ERA Oakfield Thailand always follows current legislation. This may seem obvious, but some domestic and foreign operators instead rely on their own assumptions, local practice or simply disregard applicable laws. You may notice this when dealing with other agents, developers, lawyers or unlicensed brokers.
Foreign individuals and companies may not own land in Thailand except in a limited number of cases. As a foreigner, however, you can lease land. The lease is registered with the authorities at the Land Office and runs for periods of up to 30 years.
Homes brokered by ERA Oakfield also have a civil-law lease agreement in addition to the agreement registered at the Land Office. This gives you, as a tenant, stronger and broader protection. During the lease term, you may for example sell or give away your lease right, and the lease fee is regulated. Every sale of a lease agreement where ERA Oakfield Thailand is the responsible broker includes this protection.
A common arrangement intended to bypass the law is to form a company. The arrangement involves forming a company with Thai nominees that then buys the land or property in question. This is illegal unless the company itself carries on real business. Many participants in the Thai property market recommend this arrangement, but we strongly advise against it.
Unlike Sweden, not all land in Thailand is accurately measured with established ownership. Because the quality of land-survey data varies, there are several title-deed classes. Each has its own rules and can be complex to navigate. As the class greatly affects market value, caution is needed. The best title deed, and the only type ERA Oakfield brokers to Thai buyers, is called Chanote Tee Dinn.
Foreigners are allowed to own houses. It is therefore fully possible and legal for a foreigner to own a house while leasing the land beneath it. This most often applies to new developments.
Apartments in Thailand are similar to owner-occupied apartments in Sweden, which means you own the apartment outright. One major benefit is that there is no housing cooperative whose finances can affect your home.
One aspect to consider is the ownership allocation in the condominium. In most apartment buildings and parts of the country, foreigners may own a maximum of 49% of the total apartment area.
Documents from banks and legal entities
Part of the condominium-purchase process concerns transfer of the purchase funds. The full amount must come from a foreign source and be documented when ownership documents are registered. Documentation is also required from the building's legal entity, including ownership allocation and debt. We handle collecting the documentation, registration and necessary checks, even while you are in Sweden.
Apartment sellers sometimes hide the fact that the "apartment" is not classified as an apartment or sell a lease right instead. Check what you are paying for. Every apartment brokered by ERA Oakfield Thailand is sold with ownership documents.
Please note that this summary is a general overview of current rules. It is not intended to provide legal advice or replace advice from ERA Oakfield Thailand or equivalent legal expertise.
