You have two solutions to buy real estate in Thailand: leasing or acquisition by company.
Leasing up to 90 years
The lease is a title of real property, pledge of guarantee by a lawyer, with a will proving the sale and that the property is transferable to the children.
Once the property has been purchased, this administrative procedure can be repeated twice, every 30 years at the land registration office, which again asks the owner for agreement.
En cas de refus du propriétaire de renouveler le bail, le propriétaire doit racheter la valeur foncière du marché, au moment du refus.
The lease can be bought back by an individual or a company.
The official title deed is Blue book or yellow book which must be established in the owner’s name and which must be modified in the event of redemption.
This way you will have your book house (title to the property of the house) in your name.
Property Rights Tips and Tricks
We can provide you with information on a number of points in accordance with the law of the country
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Real Estate Lexicon
When investing in Thailand, the words used by real estate agents and developers can be difficult for people with little knowledge of the subject to understand.
It is important to understand these technical terms in order to master buying a house or apartment in Thailand.
- The Freehold means that the buyer becomes the indisputable owner of the property. A foreigner cannot own land but can own a lot of apartments in a condominium. It is currently the only way to own a home for a foreigner.
- Leasehold is the fact of entering into a lease for a period of 30 years which is renewable twice, thus allowing a rental right over a period of 90 years.
- The Foreign Quota refers to buying a freehold condominium. However, the share of lots that is sold to foreigners must not exceed 49% per condominium in the case of this purchase. The remaining 51% refer to the “Thai Quota”.
- The purchase in “Thai Company” allows to be owner for the foreigners in the name of a company of which they are directors. However, 51% of the shares of the company must be owned by a Thai person. The company must have a real activity apart from the purchase of the land.
- The Land Department is the Thai government agency whose purpose is to manage title deeds. The contract must be registered with the Land Department. It is important to be accompanied by professionals who can speak the language and avoid the unexpected.
- The Chanote is a certificate of ownership that can be used as evidence confirming ownership rights to government authorities. This certificate is issued by the Provincial Land Office which marks and delimits the property. Le Chanote is the most secure title to property, but these lands can be difficult to find. The title deeds are officially called Nor Sor 4 Jor or more commonly Chanote.
- The Blue Book is an important document for Thai people because it is necessary to establish the transfer of a property or the transfer of a vehicle. Employers often ask for a copy and if you ever decide to sue a Thai person in court, this is the official address that court documents will be sent to. The name of a person in Ta Bian Baan is also used during elections since Thai people will vote normally at the location of their official address. Very often, children are in the same “Ta bian Baan” as parents, even after they come of age. They are therefore “residents” in the “family residence book” even if they can work in another city or province.The Thai house book is known as “Ta Ban Biel.” These words mean “Your Bienne”(recording) and Baan (house) in Thailand. This is an official document stating the details of those resident in a residence Please note, although we speak of registration of the house, this document does not define who is the owner of the house, but rather who is the main “holder” and the other “residents” of the house.
- The Yellow book is a yellow document which will prove the residence of the foreigner but again, the foreigner will have to submit to all laws relating to immigration and this document is not a title deed. It is simply a certificate of residence or domicile. The local immigration office can also give you proof of residence called a “certificate of residence”.
- The “maintenances fees” or co-ownership charges are the amount of charges to be paid. It is set when a condominium is put on the market. The price is defined per m2 purchased. For new programs, the price is often between 40 and 60 THB / m2.
- The Sinking Fund designates the compulsory costs common to the co-ownership. These fees are intended to cover the expenses that the co-ownership must incur in the event of unforeseen circumstances. They are payable onlyonce upon delivery of the building.
Rental property The Rental
- Guarantee is an amount defined, guaranteed and paid every month by the property developer, regardless of whether the property is rented or not. Rental guarantees can go up to 10% for a purely rental purchase and 6 to 7% for a purchase with personal occupancy.
- Hotel Management means that a hotel group will take care of finding tenants as well as the maintenance of the leased property. The rental profits will be returned to the buyer according to a percentage defined in the contract.
- Rental investment with personal occupation being able to benefit from the property purchased several weeks a year. However, this implies a lower yield.
- Cash back means that the buyer pays all of his property upon signing the contract without waiting for the work to be completed. He then begins to receive remuneration on his invested capital from the month following the payment. This system is beneficial for both parties as it allows developers to finance construction in a more flexible and less restrictive manner than if they were financing themselves from a Thai banking institution.
- The Buy Back is a contractual guarantee of repurchase by the promoter after a defined period. Each promoter does not always offer this guarantee but it is reassuring for the buyer in the event of resale.