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CONDO TITLE DEFINITIONS |
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In Thailand a condo is a multi unit building where there
is freehold ownership of individual units and a common
interest along with all the other owners in the land and
common areas. In some countries this is called strata
title.
- A condo is registered at the Land Department and
each individual unit has its own title deed.
- Foreigners are allowed to own up to 49% in area
terms of a condo building in Thailand.
- The percentage of foreign ownership of each
condo building is registered at the Land Department.
- Purchasers of new condo buildings sold off plan
need to clarify with the developer that their
particular condo unit will be registered as part of
the foreign quota.
- Purchasers of units in existing condo buildings
should clarify with the vendor if the unit is
already part of the foreign quota or if not if there
is foreign ownership quota still available.
- All the money used to purchase a condo by a
foreigner must be remitted to Thailand as foreign
currency.
- Foreign purchasers need to obtain a "Foreign
Exchange Transaction Form" certificate for each
payment from the beneficiary bank all these
certificates must be shown to the Land Department in
order to register the condo.
- When the money is sent to Thailand, a foreign
purchaser needs to include in the transfer
instructions that the purpose is to buy a condo
unit.
- A foreigner who has Thai baht in his
non-resident bank account or who has foreign
currency bank account in Thailand may withdraw money
from such account for the payment of the condo unit.
In this case, a withdrawal slip and bank certificate
issued by the bank is needed confirming that the
funds were withdrawn from those accounts to buy a
condo. These documents will be required to be shown
at the Land Department.
- Foreigners with Thai spouses who are buying a
condo jointly must comply with foreign ownership
regulations and transfer all funds to purchase a
condo from overseas.
- Foreigners have Permanent Resident status in
Thailand do not need to transfer funds from
overseas.
- The owner of a condo unit will be named on the
title deed of the unit. The condo title deed will
clearly state the area which will include balconies
but exclude columns and common areas. The condo
title deed will show the ratio of ownership of the
common areas.
Car parks may be registered on the condo title deed
in a number of different ways.
- there may be an exact size and location of the
car park space.
- there may alternatively be a right to the
exclusive use of a car park space(s) without
defining the area or location.
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CONDO/APARTMENT: PROPERTY DEFINITION |
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Thailand has specific definitions that describe the
difference between an apartment or condo, and whilst
different parts of the world use either apartment or
condominium to describe what is essentially the same
type of property, Thailand does not.
In Thailand, an apartment is a residential building held
in single ownership on an individual title. |
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APARTMENT/VILLA LEASEHOLD TITLE DEFINITION |
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A foreigner may register ownership of a 30-year lease
with the Land Office. This may be a lease of a
condominium, an apartment, a house/villa or land. The
land owner or building owner must hold the property on
freehold "Chanote" title or "Nor Sor 3 Gor".
There are no restrictions on foreigners owning a
building outright. Therefore, a foreigner may own a
building erected on the land over which they have a
30-year lease.
The lessor can grant the lessee a series of options to
renew the lease for further terms of 30 years, but these
options cannot be registered against the land title and
are only enforceable on the contracting parties.
This structure is transparent and is fully in accordance
with the Thai law.
As the leasehold structure can be complex we recommend
that the purchasers of a leasehold property seek
qualified legal advice before entering into lease
contracts. |
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CONDO, APARTMENT, VILLA OR LAND OWNERSHIP USING
A COMPANY |
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An indirect means of foreign ownership of property in
Thailand is possible through the ownership of a Thai
company, however there are strict rules as to what is
deemed to be a Thai company when foreigners are
involved.
The establishment of a Thai company and the law relating
to foreign ownership of landed property is a specialist
area and it is recommended that purchasers consult legal
professionals who are well experienced in this area. |
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FREEHOLD INDUSTRIAL LAND |
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Foreign investors engaged in industrial projects in
Thailand may be entitled to own real estate through two
different programmes.
The BOI (Board of Investment) can grant permission to
foreign companies to own land for factory sites.
Foreigners are also allowed to buy freehold land on
industrial estates for manufacturing purposes. In
Thailand an industrial estate is clearly defined as a
property developed by or with a license from the
Industrial Estate Authority of Thailand. |
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FREEHOLD DEFINITION |
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Freehold means that a property can be owned in
perpetuity. The owner has the right to sell or lease the
property. Land and buildings can be owned freehold.
There is also condominium title in Thailand where
individual units in a building may be owned freehold. |
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LEASEHOLD DEFINITION |
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This means that the building or land is held on a lease
from the land or building owner. The maximum fixed term
of lease in Thailand is 30 years. It is possible to
contractually agree options to renew but these options
are not registered at the Land Department.
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