An introduction to Thai real estate

Thailand offers many advantages to foreigners, including beautiful beaches, delicious food, friendly people, world-class healthcare, and affordable real estate. Many foreigners come here to spend their retirement, while others come to vacation and enjoy Thailand's diverse offerings. For those planning a longer stay in Thailand, purchasing property is an important consideration. Below you will find essential information about buying property in Thailand.

Property types in Thailand

Easily accessible and conveniently located, usually in central business districts and on main roads.

Comfortable, relaxed and cost-effective compared to hotel stays, they can also be rented out and generate profit.

Despite the law that prohibits foreigners from owning land in Thailand, there are other ways to acquire land in Samui.

How to buy real estate in Thailand

Defined as the process by which the owner (landlord) grants the tenant (lessee) the right to use the property for specific purposes.

With this right of use, the usufructuary (beneficiary/lessee) receives all the benefits and income of the property in question. It also allows subletting and is therefore particularly attractive to foreigners.

Similar to lease agreements, superficies grant the beneficiaries ownership rights to structures erected or attached to the property, allowing them to own houses or buildings on the property.

Further considerations regarding the purchase of real estate

A thorough examination of the ownership certificate registered with the land registry is essential. You must verify that the seller has a valid and legal right to the property before concluding a contract.

The property search traces the history of the land back to its first owner. This investigation also confirms the right of access for vehicles and utility lines to your property, provides information on residential zoning, environmental and building regulations in the area, and indicates any registered mortgages or liens on the property.

It is advisable to verify that you are permitted to construct a building on the property. You should also clarify whether you are legally allowed to drive there with your car. Do not rely on statements from people who claim that the property has already been inspected.

The lawyer tasked with verifying ownership will provide you with a full report and a copy of the title deed in English.

The seller will have the contracts prepared for you.

Since the seller drafts the contracts, it is strongly recommended that you have the contract terms reviewed by a lawyer or attorney.

First, you want to protect yourself in case there are delays in the construction of the property. The contract should include a suitable solution. Second, the seller will stipulate a penalty clause in case of late payment.

This should be fair and reasonable for both parties. Your payment plan should also be reasonable and practical. The first payment is usually 25 percent.

They will transfer money from abroad to Thailand for the purchase.

The transferred funds will be in foreign currency and will be converted into Thai baht by the Thai bank. For example, a British couple transfers pounds sterling from their London bank to the bank in Thailand.

The Thai bank converts the amount into Thai Baht and transfers it to a local bank account. To confirm the transaction, the Thai bank issues a foreign exchange form. This form is only issued if the transaction amount exceeds US$20,000.

If you wish to transfer the funds back to your home country, you will need to provide the foreign exchange form and the corresponding supporting documents. Your lawyer in Thailand can act as an escrow agent and arrange the payments to the seller according to your instructions.

Further information

Every financial transaction requires a certain amount of due diligence on the part of the buyer to ensure that it is a sound investment.

When buying shares in a publicly traded company or an investment fund, one typically researches the company's or fund's profile and performance. The same applies to buying a property from a developer.

You should ask previous buyers if they are satisfied with the quality and construction time. If you don't have time to check the developer's history, a lawyer near the construction site can provide information or review the project, those responsible, and their reputation.

For information and support regarding the purchase of a property in Thailand as a foreigner, please fill out the form below and send it to us.