Expats cannot buy a landed property in Thailand except for condos and apartments. However, they cannot make up for more than 49% of the condominium’s unit owners. It doesn’t mean buying a property in Thailand is difficult. In most cases, people don’t know how it is done, and they end up either being part of the scam or paying a little too extra than what it should be. As a foreigner, you can purchase leasehold landed property for up to thirty years. However, it depends on the real estate developer. Some developers may offer you a further 30 years of free extension, but under Thai law, 30 years is the most allowed.
In this post, you will find the basic breakdown of how to buy a home in Thailand.
What are the legal restrictions?
As said, being a foreigner, you cannot buy land in Thailand under Thai law. If interested, you have two options – purchase the property through a limited company or 30-year-old leasehold. Condominiums can be obtained given that Thai nationals own at least 51% of the condominium units.
Due to the legal restrictions, many expats look for the alternatives.
Leasing land in Thailand:
Although leasing is somewhat unusual, an expatriate can occupy land for 30 years in Thailand. But, this occurs only when a foreigner marries a Thai national. The property will be bought in the name of the Thai spouse and will stipulate a lease agreement with the foreign spouse.
It doesn’t matter where you are leasing the land, and from whom, you have to ensure that the information on the deed is correct, and the property that you are occupying has the applicable title.
Typically, the leasing contract states the registration fee, the buyer’s right to resell it, and the duration of the lease.
There are different land titles in Thailand that depend on factors including whether the land can be leased to an expat and the location of the property among others. The following are the significant land title deeds in Thailand that you must know.
It holds the right for the owner of the property to occupy and use it for farming.
- Nor Sor Song
It holds the right for the owner to occupy and use the land for a limited period.
- Nor Sor Saam
It holds the right for the owner to occupy property only after the neighboring plots confirms the land border.
- Nor Sor Saam Gor
It is similar to Nor Sor Saam; though, the lone dissimilarity is it uses package marks set by aerial surveys.
- Nor Sor Saam Khor
It is similar to Nor Sor Saam Gor; but, the only dissimilarity is that a land officer issues it and there is no package mark validation through aerial surveys.
It is proof of the actual possession of the property.
- Nor Sor ha
It verifies that the individual has the Nor Sor Si (4) Jor.
Once you select the property to purchase, you will be asked to make a deposit, say 10% of the total cost of the property to show your good faith in the purchase.
The money deposited is refundable unless you write a specific clause in the deposit agreement such as “subject to agreement on the contract terms,” or “subject to clear title.”