Buying Property or Real Estate in Thailand

Many people come to Thailand and each year and realize that the "Land of Smiles," is one of the most breathtakingly beautiful countries in the world as well as one of the most reasonable priced. Each year Tourists flock to destinations in Thailand such as Bangkok, Pattaya, Hua Hin, and Phuket in an effort to relax and enjoy the tropical paradise of Southeast Asia.

After the realization that Thailand can be a great place to live, many people look at the options they have with regard to buying Thai property, Thai real estate, and Thai condominiums. Written by a Bangkok Lawyer, or more precisely, an American lawyer in Bangkok, this piece is designed to point prospective Thai property purchasers in the right direction.

You Could Be Living Here

Legally obtaining Thai Property Rights under the Law of Thailand

Buying Real Estate in Thailand is not a simple matter. Unlike in the United States, United Kingdom, Australia, or Europe, in Thailand foreigner's rights are heavily restricted with regard to Thai property ownership. In fact, as a general matter, it is illegal for a non-Thai town own land in Thailand. Therefore, it is often necessary to mploy legal instruments to enjoy Thai Real Estate in the same manner as one would if they owned Thai Real Estate.

Fortunately, non-Thais are entitled to own a Thai condo outright via a foreign freehold title. Should a home with surrounding Real Estate be desired, long term leases, lifetime enjoyment rights called usufructs, and Real Estate ownership through a holding Thai company are all means that can be employed by those wishing to buy Thai property.

Leases and Usufructs in Thailand

A Thai Lease is one of the most effective ways of ensuring long-term property enjoyment in Thailand. There are some misconceptions of Thai law regarding Thai leases. One of the biggest is the idea of an automatically renewable lease. This is not possible. The maximum amount of time of a lease is 30 years. Past this time frame a new lease must be obtained and registered at the local land office in Thailand.

Another misconception regarding Thai leases is the idea that an unregistered Thai lease is valid for up to 30 years. This again is simply not the case. A lease shall be enforceable regarding Thai property for three years if it is not registered, past the 3 year mark, Thai authorities will not enforce the provisions of the Thai lease.

A Thai Usufruct is something akin to a life estate in the common law system. One can be vested with a lifetime use of property in Thailand and this right is called a usufruct. A usufruct in Thailand can extend past the lifetime of the usufruct holder, if before the usufruct holder's death he created an enforceable lease to another. All of this can become somewhat complicated, which is why it may be best to retain an attorney for this type of matter.

Condo ownership in Thailand

As stated above, a foreigner is entitled to obtain an foreign freehold title to a condominium in Thailand. The condo in question must comport with relevant provisions of the Thai condominium act. Basically, Thai law must recognize the building as a condominium in order for a non-Thai to obtain a freehold title.

Another major Thai legal requirement that must be met is that the Thai condominium must be at least 51% Thai owned. Sometimes this can be a problem where foreign ownership in a Thai condominium complex is large. However, in most cases, Thai condos that foreigners would be interested in owning are not near the 49% non-Thai ownership cap. As a collateral matter, Thailand condo ownership may allow one to obtain a One Year Thai Visa