Legal overview

Thai law is quite clear. Foreign ownership of land is generally not allowed but houses and condominiums can be owned fully by foreign citizens or companies. To form a company to own land is prohibited regardless of rogue operators claim. To acquire some basic knowledge is always helpful before buying a property in Thailand.

Below, we have compiled some basic legal facts about "Land", "House" and "Condominiums". This will give you some insight into Thai property law. It is actually quite straightforward but often other ideas about what is right and wrong is being put forward.

ERA act in accordance with the law
For you as a prospective buyer it is important to know that the ERA Oakfield Thailand always follow the current legislation. This may seem obvious but many foreign and domestic players rather follow their own assumptions, local practice or simply ignore the existing laws. You will notice this if you have contact with other brokers, constructors, lawyers, moonlighting brokers etc.

Lease land is allowed, company set-up is not

Leashold is permitted
Foreign individuals and companies may not own land in Thailand exept with a limited number of exceptions. However, you can lease land as a foreigner. The lease is registered with the authority, "Land Office" and run for periods of up to 30 years.

Extra security with land owner lease contract
ERA set up an additional contract except the registration recorded in the "Land Office". It gives you as tenant further strengthened and expanded protection. Among many other things you get the right to sell, give away your leasehold right, rent is index-linked. All sales of leases where ERA Oakfield Thailand is responsible broker include this security.

The formation of companies is illegal
A practice to work around the legislation is to form a company. With Thai nominees a company is set up which in turn buys the current land or real estate.

The procedure is recommended by the many actors involved in the property market in Thailand. This procedure, however, is illegal if the company is not operating.
ERA Oakfield do not offer any of these ways of operating.

Different categories of land
Unlike Europe, far from all land in Thailand is exactly measured with established ownership conditions. Bangkok and other urban and vacation areas have registrations of title to land similar to Europe.

The quality of data varies, and consequently that is the reasons for dividing land into different classes. Many Thais and foreigners believe, incorrectly, that they have valuable land, so caution is appropriate.

You can own your house and other buildings

It is permissible for foreigners to own houses. That makes it perfectly legal for a foreigner to own a house while leasing the land. This possibility is mostly applied on new construction due to the relatively easy process compared to the one applied on used property.

Holiday living in condominiums

You can own your condominium as freehold property
One of the major advantages of this is that there is no house-building co-operative whose economy may affect your living. You own your unit and a share of other common facilities and structures.

The maximum foreign ownership ratio
One aspect to be aware of is the owner allocation. Maximum 49% of the flat surface can be owned by foreigners in most parts of the country. The ratio may vary depending on location and juristic person. Bangkok and Pattaya have several complex allowed to have a ration of 100%.

Documents from banks and juristic persons
A part of the purchase process concer the transfer of the purchase monay. The entire amount must come from a foreign source and this must be demonstrated during the registration of property documents.

Documentation from the building's juristic person is also required. Issues like ownership ratios, debt-burden etc. needs to be certified.

The process of gathering of documentation, registration and the necessary checks is performed by us. For most of our foreign clients this work is carried out when they are already back in their home countries.

Make sure what you buy
Sometimes sellers conceal the fact that the "condominium" is not classified as an condominium and they are actually selling a usufruct. Check what you are paying for. All condominiums brokered by ERA Oakfield Thailand sold with correct ownership documents, e.g. freehold property.

Above is only a summary
Note that the information here is to be regarded as a general overview of the current regulatory framework. It is not intended to provide legal advice or substitute for such advice given by ERA Oakfield Thailand or equivalent legal expertise.