Buying property in Thailand

Freehold, Leasehold or Condominiums

To put this as simply as possible, if you are buying a property and it is a Freehold Title, you will need to form a Company. The Company will hold the Title to the property, and you will be the Director of the company with complete control.
The only exception to the above, being where the foreign national has invested a significant amount of money (about US$1 million) in stocks, securities, or companies, and has Board of Investment Promotion (BOI) approval, in which case the BOI may recommend that the foreign national be permitted to hold a freehold title not exceeding an area of 1,600sq.m.

If you are buying a property and it is Leasehold Title, that means that you are getting a 30 Year Lease but in practice, leaseholds can be obtained for a 60 year period using the “30+30” mechanism, whereby a 30-year lease is agreed between the freehold title holder and the lessee, and one (1) legally binding extension contracts for further 30-year period are concluded.

You don't need a company to buy a Condominium (Condo). If you are in Thailand yourself and are buying the condominium in your own name, then all you need is your passport as well as the Thor Tor 3 document.

Basically you can use any negotiable foreign currency to purchase a condominium. The foreign currency must be transferred into Thailand as foreign currency and exchanged by the handling bank in Thai Baht. The Thor Tor 3 document is the bank document showing proof that you have brought foreign currency into the country to purchase the condominium.

For foreigners to be eligible to purchase a condominium in Thailand they must present proof to the Land Department that the funds have been remitted from overseas in foreign currency. Without such proof the Land Department will not permit the transfer of ownership to the foreign buyer.

These procedures are very simple, and we can help you with all of it. It is not expensive.

Land Title Deeds

True land title deeds are officially called Nor Sor 4 Jor or more commonly Chanote and are issued by the Provincial Land Office. Land held under Chanotes are accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique "numbered" marker posts set in the ground.

When scouting around expect to find many land documents in the form of Nor Sor 3 or Nor Sor 3 Gor which are in the strictest interpretation of the law, certificates of land utilization.
They are to all practical purposes equivalent to land title deeds because they allow the land to be sold, leased or mortgaged in the same way as land held under a Chanote Title. The difference lies in the fact a Nor Sor 3 certificate is less accurately surveyed than the Chanote. Nor Sor 3 boundaries are recorded in relation to its neighboring plots and therefore there may be survey errors in length and land area. The newer Nor Sor 3 Gor is in general a much more accurately surveyed title as each plot is crossed referenced to a master survey of the area and a corresponding aerial photograph.

 
Now there are a lot of different "land papers" which we advise all serious investors not to give any credence to. They are in essence a form of claims to possessors rights which have been filed with the district land office and upon which a small tax fee has been paid. The land held under these papers cannot be dealt with by way of sale, lease or mortgage. Legal acts cannot be carried to the property and most importantly, you cannot apply for and obtain approval to build on the land.

In conclusion we recommend that any foreigner wanting to buy land should consider only those held under a Chanote or Nor Sor 3 Gor. Remember, whenever in doubt, please consult a professional.

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