Land Allocation Law Thailand

Investigations showed that a majority of the developers in Samui advertising property in magazines and on websites violated the Land Department's land allocation regulations. As a result land titles are dodgy and the status of the land NOT protected by land allocation laws. It has been common practice for land speculators in Samui to subdivide larger plots of land into less than 10 plots (less than 10 to circumvent the Land Allocation Act) and to register one or more of the larger subdivided plots on the name of different owner or affiliated company who applied for a second subdivision. Using this trick local and foreign land speculators were 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 residential development in an area where this normally would not be allowed (zone restrictions).

Developments often exist only on paper and in glossy brochures and on websites with 3D photorealistic images and there is because of the scale of corruption and financial interest little effective control by the local government and little protection for foreign buyers.

Note:

Information purposes only. Translation of only specific sections and part sections of the Land Allocation Act.

Land Allocation Act B.E. 2543

Section 4 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.

• License refers to license for land allocation
• Land Allocator refers to a person who has permission to execute land allocation and also refers to the assignee
• Land Allocation Purchaser refers to a person who enters into a contract with Land Allocator in order to obtain the allocated land and also refers to the assignee
• Public Service refers to the provision of service or other facilities in land allocation project specified in application for land allocation license

Section 21 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.

Section 22 A person who requests for dividing the plot of land into 10 plots onwards and can not prove that such division is not for land allocation purpose, the land official shall inform the applicant to apply for land allocation license and withhold the land division registration. If the applicant disagrees, he may appeal to the committee within 30 days since being informed.

Section 23 A person who wishes to apply for land allocation license to the official where such land is located shall submit following documents:

1. A land title deed or a document to certify land's use with the name of an applicant as a current owner. The land shall be free from any preferential right
2. In case of mortgage, the letter of consent from the mortgagee shall be submitted. An applicant shall specify the payment owed to mortgage in each divided plot and show that a plot for public service is free from any kind of burdens
3. A plan showed an amount of divided plots and estimated area of each plot
4. An improvement of the land project, the provision of infrastructure and public service including other improvement reasonably required by local area. The project shall specify the plan, details and estimated construction's cost description and the period of the project
5. A plan and duration for public service maintenance
6. A method to sale a divided plot and the payment or remuneration
7. Any burden that the third person has in the land
8. A form of agreement to sell in the land
9. A location of an office of an applicant
10. A name of bank or other financial institution specified by the committee who will be a guarantor for a provision and maintenance of infrastructure or public service

Section 25 The committee shall finalize the consideration for application within 45 days.

Section 24  The committee shall issue land allocation license within 7 days since the date of the project approval....

---------------

A developer who wishes to invest in land sale business or housing project or for land subdivided into smaller plots, with roads connecting to each of them and the layout of the main road suggesting that the site may later be transformed into development property, shall be abide by Land Allocation Act B.E. 2543. The developer shall prepare the following documents and submit them to the Land Office where such land is located in its authority.

• A letter explains the project in details
• A minute of meeting for land allocation resolution
• A power of attorney (If any)
• A company documents 
• A letter of consent for land allocation from a mortgagee (If any)
• A letter issued by Department of Public Works and Town & Country Planning called 'The inspection of use of land'
• A sample of agreement to sell (specified by Land Allocation Act) 
• A license of garbage disposal issued by Local Authority
• A license of water draining system issued by Local Authority 
• A license of connection of the roads (project's roads and main roads) issued by Local Authority 
• A license of draining water to public river/canal issued by Local Authority
• A licensed engineer details who supervises the project 
• A letter of confirmation to maintain public service issued by the developper 
• A receipt issued by Electricity Authority for setting up electricity system in the project 
• A letter of permission to use water issued by the Provincial Waterworks Authority 
• A calculation's description of contaminated water disposal system issued by licensed engineer
• A calculation's description of water pipes issued by licensed engineer 
• A calculation's description of roads issued by licensed engineer 
• A calculation's description of waterworks system issued by licensed engineer 
• A calculation's description of contaminated water treatment tanks issued by licensed engineer 
• A copy of title deed/certificate of utilization 
• A blueprint of public service plan

After filing application, the Land Allocation Committee shall take 45 days for inspection and consideration and another 7 days for issuance of Land Allocator License.

Related: Building and buying a home in Thailand