In this article I will present you some basic knowledge on how to buy property in Thailand as a foreigner.
In Thailand a foreigner cannot actually buy property (except a condominium), but he/she can lease property. Buying real estate in Thailand through leasing, is one of the best way for a foreigner to “secure” your investment. The most convenient way is to lease (land, house or both) for 30 years.
In Thailand foreigners can only own a condominium in his/her name. If someone wants to purchase land and build a house on it, they need to get a lease on the land for a period of at least 30 years. The foreigner who wants to build a house in his/her name needs to acquire a construction permit.
Before buying or signing anything you first need to examine the title record at the Land Department Office. You have to make certain that the seller of the property does not have any legal problems/disputes regarding the title of the land. These are very important things to do before you start drawing up any paperwork for the purchase.
The Land Department Office will provide you with a history of all the people who were in the possession of the title of the land, this is done to make known any mortgages or legal interests affiliated or attached to the land.
When you are pleased with the property in Thailand and want to buy it, you will be required to make a deposit. The deposit will reserve the property for you and start the leasing process by drafting the contract for purchase. During the deposit phase of the contract, you must be careful because if you do not have a “get out” clause in the contract, you could lose all of the deposit money, as the deposit is nonrefundable. For this reason, as well as others, it is recommended to have legal representation or counsel when buying property.
How do I renew my lease?
It is pretty difficult to renew a lease, but it is possible. The renewal of a lease is not automatic. You must prepare a variety of documentation and it is recommended to have legal advice/counsel from a lawyer when the expiration on the lease approaches. To renew the lease you need to have a careful drafting of the clause which stipulates you wish to renew the lease, and afterwards you need to obtain approval from the Registrar which is done at their discretion.
Property in Thailand is one of the most important purchase in anyone’s lifetime, therefore you need to be careful and meticulous in planning all the steps necessary to purchase property. You need to know the legal processes in Thailand, this is why it is recommended, as a foreigner, before paying or signing anything you should consult with a lawyer and have him/her present at every stage when purchasing property.
As a potential buyer you should look into anything you do not understand or unsure about by using on-line legal help in Thailand. For a more serious approach toward buying property in Thailand, I strongly recommend Isaan Property Lawyers.