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Buying property or land during marriage with a Thai national in Thailand


Source: Isaan Law Online (full aricle)

Foreigners married to a Thai national can't own land themselves, but the Land Department will allow transfer of ownership of the land to the Thai national who is married to a foreigner after a joint statement 'letter of confirmation' by the couple stating that the money expended on the land is personal property of the Thai spouse and not a Sin Somros or matrimonial property between husband and wife (i.e. under section 1472 of Civil and Commercial Code the land will in this case become a personal property of the Thai spouse). This requirement is based on a regulation issued by the Ministry of Interior (March 1999).

It would not be allowed for a foreigner to have joint ownership in land with his or her Thai spouse in Thailand under the Land Code Act. The land, and in practice often the land and house, will be registered in Thai spouses name as a personal property, not a joint marital property between husband and wife.

Management of property between husband and wife

Certain legal acts with regards to jointly owned immovable properties between husband and wife must be jointly managed by husband and wife (section 1476 of the Civil and Commercial Code), however; a prenuptial agreement, correctly made prior to the marriage, may grant sole management of jointly owned property between husband and wife to one of the spouses. Without a prenuptial agreement immovable property which is jointly owned must be jointly managed by the spouses. If one of the spouses is a foreigner the land can't become a jointly owned matrimonial property between husband and wife and the law requires that the land becomes a personal property of the Thai spouse, and therefore it will be managed by the Thai spouse, irrespective any prenuptial agreement (e.g. the Thai spouse can sell the property without the consent of the foreign spouse). Control over each others personal property (in this case the immovable property) can't be arranged in a prenuptial agreement.

Foreigners can however protect their interest in the property by entering into a separate usufruct agreement with their Thai spouse, or in case of undeveloped land a Right of Superficies. Secondly, it's only the land aspect of the property that is restricted for foreign ownership, not the structures upon on the land or immovable property as a whole. Even though this is not commonly done, foreigner are allowed to have joint ownership over the building upon the land with their Thai spouse, or even sole ownership over the structures built upon the land. In case of registered joint ownership over the house this will become a matrimonial property which requires joint management by both spouses. This prevents sole management by the Thai spouse over the property as a whole (land and house) and it would require mutual consent to manage the property.

Ownership or co-ownership of the house must be registered at the Land Department. In case of co-ownership over the building it is not possible to also register a usufruct, but in case of undeveloped land a Right of Superficies is possible (the registered right to own a building upon someone else's land).

The right to avoid any agreement between husband and wife entered into during marriage in section 1469 of the Civil and Commercial Code will have partly effect on registered real rights like the right of usufruct as long as it is properly registered on the title deed at the Land Department (usufruct grants the use and possession of an immovable property to another person). In this case the Thai spouse would need a Court order to cancel the usufruct agreement, therefore making registered real rights an acceptable protection for a foreign spouse. Even though the usufruct could be avoided or canceled in Court in a divorce, but in this case the land (or value) will not per definition be allocated to the Thai spouse.

Buying land in a Thai Girlfriend's name

If you buy land in a Thai girlfriend's (friend's) name the Land Department does not require proof that the money expended on the property is personal property of the Thai national. The reason for this 'letter of confirmation' by the Land Department in case of a Thai foreign marriage is simply to prevent the land to become a joint matrimonial property between husband and wife, which would not be allowed under the Land Code Act. In case of a Thai girlfriend this is not the case. The foreigner may loan the money for the property to his girlfriend or she may accept the land as a gift. It is not allowed under the Land Code Act when the Thai national is 'acting as the nominee owner or agent on behalf of the foreigner'. On registration the Land Office could require proof from the Thai national that he or she is not acting as a nominee owner or agent on behalf of a foreign buyer as this would not be allowed under the Thailand Land Code Act.

 

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