Thread: How to Buy Condominiums, Shop Houses, Homes and Land in Thailand

How to Buy Condominiums, Shop Houses, Homes and Land in Thailand

Drew Noyes, Managing Director P.A.P.P.A. Co., Ltd. Legal and Visa Services

No matter what anyone tells you, it is not possible to own land in Thailand except under extraordinary circumstances. (However, owning buildings is a different matter.)


The Thai Elite Program has been trying to get approval to allow members, who pay one million baht the right to own one rai of land for their home, but approval has not yet been granted and the program is at risk of being cancelled.

If a Thai person wills land to you by testament and the land is a rai or less and you use it as your residence, then you can own it under certain conditions.

If you bank wire transfer 40 million baht or more into a Thai bank from out of the country you can buy up to one rai of land with approval.

You may be able to buy a condominium in Thailand in your name provided:

You are under the Condominium Act rules and the new building has not allocated the 49% (minority) ownership of the total condominium space, not units, to foreign buyers, thus allowing you to be a registered owner. This is because in addition to owning the space inside the walls, ceiling and floor of your selected condominium you, as an owner, technically own a pro-rata share of the underlying land the condominium is built on including swimming pool area, parking lot, etc. So as not to violate Rule #1 (above) which states foreigners cannot own land, the total ownership of the land cannot be controlled by foreigners in association voting of the condominium. The voting block is comprised solely of owners and collectively they are the “juristic person” who under Thai law is a Thai entity and make all decisions about all aspects of the condominium including the associated land.

You buy from a foreigner who owns the condominium in his or her own name. Or you buy a condominium for a Thai, but the total allocation of foreign ownership in that building has not been met. In order to check, you or your representative MUST go to the office of the condominium and get a letter to the effect that your ownership is allowed. You will give this letter to the Land Office where you transfer ownership. You will NOT get the letter if any past due bills are outstanding on the maintenance fees, added assessments, electricity or water bills so they must be paid first.

In 1997, during the Asian Financial Crisis, I was invited to Thailand along with many other international businessmen and we were asked to help the Thai economy by establishing businesses here. I choose to do so under the protection of the Treaty of Amenity offered exclusively to American investors by His Majesty the King. Protecting my assets has always been my primary goal. Secondary to profits. Since Thai law currently prohibits foreigners from owning land in Thailand I asked advisors and lawyers for a good alternative.

There are several options when buying property in Thailand:

 Buy a condominium in a building where sale to a foreigner is allowed

 Put the property in the name of a Thai person

 Form a Thai Company

 Lease the property with the option to buy when it is legal to buy in your own name

So when I bought my first house in Pattaya I put it in the name of a trusted Thai, my Thai wife, and I registered a mortgage (in Thai it is called a "jamnyong") against the property for the cost of the house plus improvements.

The house cannot be sold without paying the debt back to me. The land office has the title deed (in Thai it is called a “chanote”) and it clearly states on the back of the large beige parchment title deed the amount owed and to whom so it is impossible for the property to be sold without paying me since all sales transactions have to go before the land office for approval. With a recorded mortgage the Thai person who is named as the legal owner cannot borrow money against the house if there is already a mortgage for the equity value of the property.

Leasing Property in Thailand

I could have also record a lease at the land office for property for up 30 years stating that I, and only I, if I wish, have the right to live in or use the subject land and or house. The person whom I put the property in the name of would give me a receipt for money paid in full in advance to her by me for this 30-year lease. By showing as evidence my rights to the property with a copy of the recorded lease the police nor anyone else can evict me from the property should a domestic dispute erupt.

I believe it is highly advisable to have both a mortgage against the property and a recorded lease on the property for ultimate security when putting property in the name of any Thai.

I could also put the property in any Thai person's name for the benefit and ownership of my Thai children who could not sell it until they were 20 years old, but there are some risks. Before doing any of this consult a licensed attorney. Ask to see his or her license and record its number. This advice is just to explain what I did, not necessarily what is right for you to do.

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