Useful Info about Thailand Real Estate
LAND OWNING LAWS IN THAILAND
Thai law stipulates that a foreigner may not own land in his name-he has the right of ownership of buildings only. If a foreigner wishes to purchase land to build a property he has 2 options:
The land is purchased on 30 years leasehold, with an option to extend the lease for two (2) further 30 year periods. possession of the land is assured be virtue of the fact that the property occupies the land. The lessor cannot seize the property upon expiration of the lease as the property is separate from the land.
If a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Limited Company. The land will be owned the company, not the individual.
LAND TITLES
There are many different types of land title in Thailand the majority of which do not allow for the legal right to build on that land.
Only 3 land titles is recommend, Nor Sor 3, Nor Sor 3 Gor, and Chanote
A HISTORICAL BACKGROUND
In the beginning, i.e. the Sukhothai era, most of the land in Thailand was in posses of the people, who reserved the right to individually use said land and to transfer it to theirs heirs. Latter, in the Ayuthaya and Ratanakosin, the land was owned by the king, The people had to request a royal grant in order to obtain land.
There are two types of rights to private land:
The first is the right of possession (Possessor right), i.e. people who posses and use the benefit of land will have the right to possess such land under the Civil and Commercial Code. The second is ownership by a person who has a title deed and document concerning the land.
Here are the 3 recommended types:
1. Nor. Sor. 3
Is the lowest land title which allows for legally building a property an instrument certifying the use of land issued by the government to the proprietor of land not a possessor title, i.e. is confirmed by law that a person holding Nor Sor 3 has the legal right the land title can be used as a legal document or to use the benefit of the land as an owner. Nor Sor 3 is a floating map with no parcel points. It's issued for a specific plot and is not connected to other land plots. This causes problems in verifying the land area. Any legal acts must be publicized for 30 days. LEGAL BUT NOT HIGHLY RECOMMENDED.
2. Nor. Sor. 3 Gor.
Is a legal land title with the same legal basis as Nor. Sor. 3. The difference being that Nor. Sor. 3 has parcel points on the map, and is set using an aerial survey to set the points and the land area. It is possible to verify a nearby land area. It always uses the same scale of 1 : 5000. There is no need to publicize any legal acts, and it is possible to partition (divide) the land into smaller plots. RECOMMENDED
3. Chanote-Land Title Deed
Is a certificate for ownership of land. a person having their name shown on the deed has the legal right to the land, and can use it as evidence to confirm the right to government authorities. The title deed has been issued by using to set the area and boundaries of the land, which is a very accurate method. Any legal acts can be done immediately, as per the right of ownership. Land partition of more than 9 plots must be carried out according to the Land Allotment Law, Section 286. This the most secure type of land title and highly recommended.
Another option is a Condominium.
4. Condominium
Foreigners have the right to ownership of building only where land is not included. A suggestion for foreigner is to lease the land for 30 years with an option to extend of the lease, then purchase ownership of the house built on the land. Certainty of possession of the land house is assured, by being the owner of the house. The ownership of the land shall be leases out. If arranged as stated above, then the house will be separate from the land, and will not be a component part under the Civil Law. Ownership of a building can be confirmed, and the lessor cannot seize the house upon expiration of the lease.
Frequently Asked Question-Phuket property, Thailand Real Eatate
Question: Can I, as a foreigner, purchase land in Thailand in my own name?
Answer: A foreigner cannot own land in his own name. he can purchase the land through his company (Thai limited company) or he can lease the land for 30 years, usually with extra 30 years options.
Question: What is the maximum number of share I can hold if I register a Thai Limited Company?
Answer: All foreigners, other than Americans, can hold a maximum of 49% share in a Thai Limited Company.
Question: If I purchase a bar or restaurant, but do not work in that business do I need a work permit?
Answer: Thai law stipulates that as a foreigner, if you are working and do not receive an income you still need a work permit. Even if you purchase a business and do not physically work, but you receive an income from that business, you need a work permit.
Question: How many Thai shareholders do I need to form a Thai Limited Company?
Answer: This depends on the of foreigner shareholders. The total of 7 shareholder, 1 foreign 6 Thai, 2 foreign 5 Thai etc.
Question: What are the advantages of having a work permit?
Answer: Having a work permit means are legally allowed to work and receive an income in Thailand, you can obtain a 1 year multiple entry visa, open a bank account and purchase a telephone in your own name.
Question: I want to purchase a business, purchase a plot of land and builtmy own house. How I do get started?
Answer: Easy, as you would in your own country, you leave it to the professional, Garden Island Co., Ltd will guide you through the whole process, from finding registering a company, acquiring the land, design and construction. we will even find you a rental home whilst your dream home is being built.
Question: How is land measured in Thailand? What is a Rai?
Answer: One Rai is 1,600 m2 of 2/5 of an acre.
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