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Real Estate Law House Ownership


Buying and owning a house in Thailand

Buying a house in Thailand

Overall property laws and buying a home in Thailand has its own specifics but basically is not much different from buying real estate in other countries like Germany, Australia, or the US, except foreigners may not own land in Thailand. Land ownership in Thailand is governed by the Land Code Act. Foreign land ownership restrictions in Thailand land laws refer to the land only, not the building on the land or condominium registered under the Condominium Act. The land and the structure on the land could be owned independently by separate persons. Foreigners buying a home in Thailand can do this through a 30 year land lease agreement (and optional right of superficies) with the house owned as a separate personal property.

How to own a house distinct from the land it is on

In a standard situation a real estate sale in Thailand involves land and house. The owner of the land is the owner of the things fixed to it or forming a body with the land (section 139 Civil and Commercial Code). There are exceptions, and for example in case of a foreigner buying real estate in Thailand ownership of a house can be registered and transferred separate from the land it stands on. In case ownership of a house is transferred separate from the land the transfer procedure must be in accordance with the Thailand Civil and Commercial Code (Book IV 'Property') and:

  1. be in writing, and
  2. registered with the Land Department's branch or provincial office.

 

Buildings (apart from a licensed condominium) do not have an ownership title deed document in addition to the land tile deed. The procedure to obtain ownership of a structure separate from the land is as follows (note: the rights to use and possess the land (land lease and/or superficies) must be created first):

  1. If buying from a developer (depending on the sale and tax structure and liabilities the developer chooses) the sale of a house separate from the land lease is either by:
    • a land lease and a building sale and purchase agreement followed by the land office transfer procedure (see under 3), or
    • a land lease and a building construction contract (hire of work) with a building permit in the foreign purchaser's name.
  2. In case an individual person is developing a plot of (leased) land the building permit should be issued by the Or Bor or in the name of the person that leases the land (the building permit can be used as proof of ownership of the house).
  3. Sale and transfer of ownership of an existing building separate from the land requires the current owner and purchaser of the house to:
    • sign a standard land office Thai script sale of a structure document (signed at the land office in front of the competent land official)
    • followed by a 30 day public announcement/ posting of the house sale at specific locations
    • after the announcement period the parties return to the land office to complete the transfer (the Thai script sale of a structure agreement will stamped and issued by the land office and can be used as proof of ownership of the building).

 

If the above procedure has not been followed the building could legally still be owned by the developer or another third party who owns the land and built the house (not recommended) - read more: buying and building a home in Thailand

Documents required for the transfer:

single holiday house choeng-mon koh samui

  1. passports/ ID-cards
  2. land title deed
  3. house book (tabien baan)
  4. building permit

 

The sale of an existing house separate from the land (land lease combined with house ownership) must be registered with the local land office to be complete and transfer fees and taxes must be paid when the transfer takes place. The land office is the only government authority in Thailand for the administration and completion of a transfer of ownership of a building. The transfer will take at least 30 days (announcement of the sale period) from the first visit to the land office to the issuance of the sale of a structure document. The 30 day announcement period is to see if anyone wishes to contest the ownership over the house. The issued Thai script sale document stamped and signed at the local land office (sample right column) is the document that proofs the purchaser's rights to the house. The sale of land and house and the transfer of land with a full title deed and building on the land together is completed om the same day - read more (building yourself)

Right of superficies, as a separate registered right in addition to a land lease agreement, is not common in Thailand. Superficies is used when the owner of the land is not the same as the owner of the house erected on the land. A right of superficies is registered on the land title deed - read more...

The Thai House Book

A Thai house book (Ta.Bian.Baan - read more (external)) should not be confused with a house ownership document. A house book is only a house address and resident registration document issued and administrated by the local government district amphur. This is not an important document for foreigners and unless the foreigner has residency in Thailand he is not registered in a blue house book, even though he is under Thai law regarded as the legal owner of the house. A special yellow house book for foreigners can be obtained and depending on the location the requirements for issuing a yellow book could include a work permit or Thai marriage certificate, non-immigrant visa and ownership document (condo title deed or the land office sale of a structure document). The document that could be described as the house ownership document (separate from the land) is the building permit (issued by the local Or.Bor.Tor) or the Land Office sale of a structure document issued by the Land Department.

Building permission for a house in Thailand

The seller of the house must also have approval for the building (construction permit). The government issued building license is the evidence that shows the seller owns the building and obtained approval to build on the land (it does not say that the building is built acording to the building permit!). If the seller can't show a building approval the house could be illegally built or may not be built according to local building or zone regulations. Unregistered houses or houses liable for demolition (conflict with the Building Control Act or zoning regulations) have been sold to foreigners in Thailand - read more...

Term of ownership of a house on another man's land

The right to own a house separate from the land always follows the term of the land lease and/ or superficies agreement. The contract for a land lease and/ or superficies can run for a term not more than 30 years or for the life of person or person's granted the right of superficies. If the land lease/ superficies is near termination the use and possession of the land can be renewed (the owner willing to renew it). The contract may contain a renewal option but as a mere personal contract promise that can only be enforced at the time when the registered lease term runs out this must be considered unenforceable as a contract - read more...

Thai property taxes: land and housing tax

When a land and house lease agreement is put in place (or land and house is owned by a company) land and housing tax shall be collected at the rate of 12.5% of the yearly rental according to the lease agreement or the annual value assessed by the Land Department - read more...

Ownership transfer of a house: land office tax and fees

The transfer of ownership of a house is as an immovable property subject to income withholding (personal or corporate income) tax, transfer fees, stamp duty, specific business tax calculated over the registered sale value or appraised value. The government's assessed (appraised) value of a house used by the land office depends among others on location, number of floors, floor space and materials used - read more...

Related:

Comments   

 
#1 John H. 2012-02-04 07:20
I have sold my house to a thai but i have the company in my name am i still responsible for the company tax each year. Also if i dont pay the tax what will hapan to me ???? Regardes john
 
 
#2 Consultant 2012-02-05 09:35
Every company in Thailand must file audited financial reports with the CRD each year, even if the company is inactive and has no income or assets. This is required by law. Even when you do nothing with the company you must show yearly accounting. Not complying with the law could have serious consequences. If the company has no activity it is recommended to dissolve and deregister the company.
 
 
#3 N 2012-02-05 09:38
One interesting point needs special attention in this regard. Many Thai people with relatives living abroad is concerned about the tax issues in inheritance law Thailand. It is necessary that all of such people should be aware of these facts. Tax is very important without the least doubt. And when it is in relation with a subject like inheritance, it becomes even more serious.

If the discussed policy is implemented, there is a possibility that most people will need legal advices on inheritance tax issues. The consultation providers of inheritance law Thailand should also assess the possible outcomes, if the policy is implemented. Their opinions will also help them reach out to the common people who might need their help.
 
 
#4 nadia 2012-05-03 15:52
Thailand does not know specific inheritance tax read: samuiforsale.com/.../... , benefits and income subject to personal income tax under Thailand tax laws can be found in the Thailand Revenue Code, - read: translation samuiforsale.com/.../...
 
 
#5 Guest 2012-11-02 03:45
can i buy a townhouse in thailand for cash and register it in my 12 month old half thai son,and lease off him for 30years. I am married to thai (mother of son) but will soon be divorced,can buy now or best to wait for divorce.
 
 
#6 Guest 2012-11-02 05:47
The buying part would work, the lease not, anyway not without permission of a court and that would be difficult.

Check 1574 thailand civil and commercial code samuiforsale.com/.../...
 
 
#7 Guest 2012-11-02 10:13
Quoting Guest:
The buying part would work, the lease not, anyway not without permission of a court and that would be difficult.

Check 1574 thailand civil and commercial code samuiforsale.com/.../...

are the laws different province to province? i quoted the civil/commercia l code 1577 gifting property to minor and the lawyer was told by land office it is not possible in prachuap (hua hin)
 
 
#8 Guest 2012-11-04 06:16
I believe this subject is governed by a march 1999 regulation from the ministry of interior, the same regulation that allows thai nationals married to foreigners to buy land. I think it says something like;

Any foreigner's minor having Thai nationality may purchase or accept land as a gift with no consideration and register the ownership of such land if it does not appear after investigation that he/she has done so to avoid the law.
 

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