Construction in Thailand is mainly regulated by the Building Control Act and the Town and City Planning Act, both of which have been extensively revised in 1992. While the former provides for governmental control of virtually all types of construction by means of various applications and punishment in case of violation, the latter deals with the permissible uses of land in different zones. I addition there are under both Acts numerous Ministerial Regulations specifying regulations and zone restrictions.
To apply and obtain approval to build (Building Permit) the land must have the status of title land, a land title certificate must have been issued by the Land Department (Nor Sor 3, Nor Sor 3 Gor, and Nor Sor 4 Jor (or chanote)).
By the virtue of the Town and City Planning Act the government has issued zoning regulations for Samui (July 2006). The restrictions and the requirements for utilization of land in each zone is different. The main aim is to set rules for sustainable development of Samui and protect Samui's environment. Under the new zoning regulations in the agriculture green area (zone 6), which covers large areas of the island, land subdivision of titled land is not permissible for residential development. Still you see large plots of land in this area for sale (hill side, hill top land, great views, investment opportunity), suggesting huge profits to be made with subdivision for property development and residential purposes, even though not allowed or (referring to the illegal title deed problem in Samui) the land could be deemed as forest land or public land and has a doubtful (illegal) status in the first place.
In addition to the zone regulations (12) issued under the City Planning Act there are 4 general zone regulations issued under the Building Control Act, giving standard building requirements and restrictions depending on its distance from the beach. These restrictions relate to the maximum size, design and the height of the building (see Ministerial Regulations 1 and Ministerial Regulations 2).
Purchasers of raw and undeveloped land must be aware that because of corruption at the Koh Samui Land Office and mafia like activities fast areas of forests and hill side land on the island have been encroached and land ownership papers have been issued illegally. Forest land is classified as government property, as such, they are under the Ministry of Natural Resources and Environment and cannot be owned by any private entity and no building permits are allowed. Issued land titles may be corrected or revoked and illegally obtained land will be seized and returned to the State. In Samui encroached public land has been bought and sold several times before ending up with their current owners, however, it is the present and mostly foreign owners of the land who bear the risk of being charged either with illegal possession or encroachment into the reserved areas like public and forest land (see news in the homepage).
 |
It is and has been common practice for land speculators in Koh Samui to subdivide a larger plot(s) of land into less than 10 plots (less than 10 to circumvent the Land Allocation Act) and to offer the smaller saleable sized plots for sale to foreigners through nominee structured holding companies suggesting a licensed housing property development. Using this trick local and foreign land speculators have been able to subdivide land not suitable for development into more than 9 plots without having to apply for a land allocation permit or permission to develop the land and make huge profits suggesting a residential housing development in an area where this normally would not be allowed. If necessary, for developments exceeding 9 plots, one or more of the larger plots within the project are registered under a different owner/ company to apply for a separate subdivision, again into less than 10 plots to avoid the Land Allocation Act or Environmental Control Act. Following the problems and uncontrolled building in Samui the Ministry of Interior has declared that land subdivision into less than 10 plots for housing development will require the owners to apply for permission to develop the land.
Section 4 Land Allocation Act: 'Land Allocation refers to the sale of plot of land that has been divided into 10 plots upwards with property or other remuneration in return regardless whether it is divided from one or many adjacent plots. It also refers to the execution that the land has been divided less than 10 plots and thereafter, within 3 years, it has been divided in total into 10 plots onwards'.
Section 21 Land Allocation Act: 'Land allocation shall be prohibited unless the approval by the committee. The procedure for application and issuance of license shall be in accordance with regulation, method and conditions specified in Ministerial Regulation'.
Investigations showed that the majority of the developers in Samui advertising property in magazines and on websites were not licensed to do business and had violated the Land Department's land allocation regulations (this practice is not isolated to Samui). As a result land titles are dodgy and the status of the land NOT protected by land allocation laws or general development regulations. Foreigners have been warned they risk losing all and may face legal problems later. Do not think: we buy from a seemingly friendly, bona fide and professional westerner so all would be okay. Property development in Samui is a mess and buyers may end up with an illegal title or land that is in fact public land. Read warning in the Bangkok Post and Community Newspaper (
Articles).
 |
To preserve natural resources the Minister for Natural Resources announced (December 2005) a consolidated campaign to crack down on illegal logging and environmental destruction in selected provinces, one of which is Suratthani and therefore includes Koh Samui. Companies and individuals that cut down trees or destroy the natural environment illegally will be punished, which in many cases mean the companies and individuals illegally clearing land for development. The Governor of Suratthani has expressed support for this campaign. August 2006; Following a series of inspection trips around the Samui Khun Tingchai Rochanaknan form the Department of Natural Resources and Environment recently said that because of continued uncontrolled development, Samui in once again in great danger of flash floods and landslides this year. March 2007; Solution to Samui flooding discussed 'Issue land title deeds and building permits according to the rules'. ( article)
It is further expected that Samui mountain land will be protected by restricting all future construction of any type 80 meters above sea level. Phuket has the same rule. To protect the environment in Samui it would be likely that Samui will get similar restrictions soon. Often areas for current suggested 'developments' involve protected forest mountain land. If land is cleared for development in this area the government could say: you are not allowed to be there in the first place, building is not allowed and we want to replant the trees and the title deeds will be revoked.
Samui Community March 15 2007: 'The DSI Secretary-General Mr. Sunai Manomai-udom, vowed to take back all land in forest and mountain areas that was illegally occupied by foreigners'.
The Nation April 11 2007: Research by the Agency for Real Estate Affairs indicates the new city plan on Koh Samui will mandate that property projects cannot be constructed higher than 150 metres above sea level (see under News).
 |
Following the construction boom in Samui there are many unqualified builders and no regulations or laws enforced protecting purchasers against swindlers and would-be developers and builders. As construction is generally pre-paid by the purchasers, foreigners have often paid a substantial part of the contract price where the contractor's actual costs on labor and materials are a fraction of what they paid. It has regularly happened in Samui that a contractor simply walked away during the construction with a substantial profit leaving the client with the mess and a substantial loss. In this situation you can try to sue the contractor but you will have little chance of success. In addition, the contractor enjoys limited liability via his company.
Building warranties may turn out to be worthless as construction companies in Samui come and go, or go bankrupt or are simply dissolved and the contractor continues under a new company without being liable for previous mistakes or faults.
The Building Control Act and Ministerial Regulations issued under the Town and City Planning Act cover zone restrictions and building requirement for whole the island.
Before issuing a building permit for titled land according to the Building Control Act, the official should consider whether the land owner's intended use of his land is a permissible use according to the applicable Ministerial Regulations for zone regulations and guidelines for general developments under the City Planning Act. A landowner may only use his land to the extent that the use is not prohibited in the zone or development plan to which his land belongs. The regulations issued under this Act divides the island in different zones, giving specific requirements and restrictions for utilization in each zone. However, within these zones (especially area 6) construction is again restricted by specific laws, like the Environment Control Act or if the land would be located in a protected area, like nature/ watershed/ forest areas.
Koh Samui, nearby Koh Phangnan and Koh Taen within Surat Thani will be declared environmental protection zones (Environmental Protection Act), said Usa Kiatchaipipat, director of urban environment and area planning at the Office of Natural Resources and Environmental Policy and Planning (July 16 2006). Around 34,000 rai out of 150,000 rai of land on Koh Samui is in the process of being declared protected forest.
 |
Building and development is a mess in Samui and many houses are not built according to the drawings and building permit that was issued (if any) and conflicting with the applicable construction rules and regulations and other relevant rules. Some of these house owners risk (or are already ordered) rectification of the incorrect part or demolition of the building (height, distance to the public road or beach, zoning, materials used, roof design).
The building Control Act imposes heavy fines and imprisonment on violators. In addition, if any violation is found (often initiated by a Thai neighbour), the authority has the power to issue a stop-work order and demand rectification of the building or an incorrect part within a reasonable time. If the building or an incorrect part cannot be rectified, the authority has the power to order a demolition thereof.
The ministerial regulations of the Building Control Act BE 2522 for Samui, 'governing the construction of buildings in the area where the building is located', contains the restrictions related to the maximum size of the building, the required distance from the coastline and the height. Coastline means a line specified at the highest level of a tide. In the second region it is prohibit to construct a building which height is more than 12 meters, this is measured from the ground level to the highest point of the building. Terraced homes can be built whose total height, bottom to utmost top does not exceeds this height. It is not possible to legally protest about your neighbour blocking your views if they comply with the codes.
The law in Samui is not always followed, but note that in Phuket a few years ago land deeds of 10,000 rai of agricultural and forest land were revoked and returned to the state because of illegal development. A property development scam where influential figures and high end officials transformed farm land and forest area into luxury resorts, hotels and marinas. Could this also happen in Samui.
