Location | Property Types | Thailand Condo Land Purchase | Documents needed when buying a condo | Understanding Land Titles
Location
PATTAYA
Pattaya has become Thailand’s second capital city, as well as famous international tourist destination. Hundreds of new businesses open each year, and hundreds of existing businesses are sold, to both Thai and foreign investors. The business climate in Pattaya is vibrant and healthy, even in the slow economy of the last year. Hundreds of thousands of Thai and foreign tourists visit the city every year, therefore, businesses catering to those tourists, and upscale expats, do well.
Driven by its popularity as both a holiday destination, and a location for foreign expatriates, Pattaya is an area of extensive property development, including hotels, condominiums, and housing estates. Steadily rising prices of land and buildings have also led to investment and speculation contributing to the growth in the town's economy.
Naklua - Wong Amart Beach
The Naklua and Wong Amat area has a quiet and peaceful local neighborhood feel, perfect for visitors who want to be away from the buzz, yet close enough to reach Pattaya's major attractions and highlights in a jiffy. The area has seen several resort-type developments and other accommodation opening up in recent years,.
This intimate, gently curving 2km long beach is found tucked around a headland just to the north of Pattaya Beach. It can be reached via the small roads that run off Naklua Road towards the coast, and is around five minutes drive from Pattaya Beach. Apart from a convenient store there are no shops (the closest are on nearby main road Naklua), only a couple of restaurants, and no nightlife to speak of. However, nearby Naklua Road has its fair share of restaurants, beer bars and shops.
BANGKOK
Sukhumvit
Sukhumvit is still the prime area for both business and residential property. The skytrain or BTS has changed the city's lifestyle. People tend to live close by their work places. They realize that time is valuable and that no one wants to get stuck in traffic. Since the opening of the subway or MRT, the Sukhumvit area has become more and more attractive.
This area is always popular for foreigners because it completely fulfills their needs with a variety of business centers, entertainment complexes, fitness centers, modern shopping malls, international schools, accredited hospitals, as well as several other private hospitals nearby. And you'll never run out of fantastic Thai and International restaurants. Convenient and reliable transportation is always nearby on Sukhumvit road.
On nut (Sukhumvit 79) became to be one of the hot location. On nut has been growing substantially in this past 3 years. Many new development projects and the extension of the skytrain make this area becoming popular. For the convenient, there're Tesco Lotus, Carrefour shopping center, International schools and etc. The location also provides easy access to the toll way.
Property types
Condominiums
City lifestyle has changed, owing to the faster pace of life. Transportation and accommodation are priority issues up for consideration when deciding where to live. Therefore, condominium has become great influence for living in the city. With the practical characteristics of condominiums, city people can fulfill their needs while also have more time for themselves and their family.
However, condominiums market still expanding, and always fascinate investors.
Thailand Condo Purchase
Our lawyers specialize in supervising condo purchases and leases in Thailand.
Buying a condo in Thailand is an attractive option for many foreign nationals. There are less nationality restrictions on condo ownership than land ownership and it is possible for a foreigner to own a condo outright. As one of the few property rights allowed to non-Thai nationals, condo-ownership is popular for investment as well as residence and retirement purposes.
What condo units are foreign nationals legally permitted to purchase?
In general, non-Thai nationals may purchase condo units in condo buildings throughout Thailand, as long as their purchase would not cause the foreign ownership ratio of combined units in the building to exceed 49% of the total floor area. Certain condo buildings in the Greater Bangkok Metropolitan Area may not be subject to the 49% foreign ownership ratio restriction.
What are the requirements for a foreign individual to purchase a condo unit in a building in which foreign purchases are permitted?
Foreigners who do not have a Thailand residence permit must show proof that the funds for purchase of the condominium were brought from outside of Thailand. Non-Thais who have legal residence permits are not required to show evidence of funds coming from abroad.
What is the most typical way for a foreigner to purchase a condominium in Thailand?
Most foreigners purchase a condominium by showing evidence of an incoming remittance of foreign currency into their bank account from abroad. This is typically demonstrated by requesting the issuance of a certifying document from a bank in Thailand.
Can foreigners inherit ownership of a condo?
Property ownership of a condo may be inherited by either Thai or non-Thai descendents under normal circumstances.
Are condominium long-term leases available?
Yes. Condominiums may be leased to foreigners for periods of up to 30 years and may have options to renew. Leases of greater than 3 years are required to be registered with the Land Department. This option may be useful to acquire condominiums in buildings that have exceeded their foreign ownership ratio quota.
Why is important to have a qualified lawyer supervise your condo purchase transaction?
Thailand laws regulating real estate transactions do not provide as many inherent consumer protections as those in most western jurisdictions. For example, in Thailand, real estate agents are not licensed and title insurance is not commonly used. Thailand is very much a "Buyer Beware" jurisdiction.
Documents needed when buying a 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.
1. Remittances must be sent in exactly ("to the letter") the same name as that on the purchase contract, i.e. if Tom Smith is the purchaser then the name Tom Smith must appear on the remittance advice. T. Smith or Smith Enterprises are unacceptable.
2. Transfers of funds MUST be made in FOREIGN CURRENCY only and NOT in Thai Baht, i.e. if you are working in US Dollars then remit in US Dollars. Do not remit in Thai Baht.
3. Amounts transferred must be more than $5,000 in order to obtain a Thor Tor 3 form. (The bank will NOT ISSUE a Thor Tor 3 form for amounts less than $5,000.) This may mean you will have to agree to a modified instalment schedule so that all amounts remitted are more than $5,000.
4. The purpose of the remittance MUST be stated on the remittance advice. This should be "FOR THE PURCHASE OF A CONDOMINIUM". The Bank of Thailand's code for this is 5.22.
A condominium title (first established under the condominium act of 1979) is a title to a part of a building or buildings with multiple owners, and a fractional interest in the land (always a Chanot) and other common assets (such as a swimming pool) and common parts of the building (such as the stair well or lobby). The title will state the floor area of the private apartment, the ground area of the common land and the percentage interest which that apartment has in the common property. This percentage also represents the value of the voting interest in the condominium company or owners' association.
Buildings other than condominiums do not have any form of title document, but their sale or long lease can be registered at the Amphoer (district) land office. Proof of ownership, must be established either from proof of construction or document showing previous sale-purchase (not to be confused with the House Registration document, which is only a register of the house's occupants).
Transfer of a building as distinct from its land requires the posting of 30 days public notice (to see if anyone wishes to contest the ownership). Foreign nationals (aliens) may own a building (as distinct from its land) and may register such transfer of ownership into their names at the local district office.
Understanding Land Titles:
True title deeds, "Chanot ti din", are only to be found in the most and longest developed parts of the Thailand, and of course in Bangkok. Chanot titles, issued by the Provincial office of the Thai Land Department, are accurately surveyed, plotted in relation to a national survey grid and also marked by unique numbered marker posts set in the ground.
Most "titles" in rural Thailand are however of the Nor. Sor. Sam or Nor Sor. Sam Kor. (N.S.3.) variety and are in the strictest interpretation "land exploration testimonial deeds". They are to all practical purposes land title deeds (issued and maintained by the Amphoer, the District land office) in as much as clear records of ownership are maintained, and that they may be sold, leased, used as mortgage collateral etc. In the case of the Nor. Sor. Sam. but not the more recently issued Nor. Sor. Sam. Kor. there is however a requirement that 30 days public notice is necessary before any change of status over the land can be registered.
N.S.3. titles are in general less accurately surveyed than Chanot titles. In the case of the older (now increasingly rare N.S.3.) titles the boundaries are only recorded in relation to the neighboring plots and survey errors in length of boundary or area are not unusual.
The newer Nor. Sor. Sam. Kor. is in general much more accurately surveyed and each plot is cross referenced to a master survey of the area and a corresponding aerial photograph. For this reason whenever purchasing N.S.3. land which lacks clearly defined physical boundaries it is a wise precaution to ask the owner to stake out the boundaries and then ask neighboring land owners to confirm the vendors interpretation of the boundary.
The Chanot and the Nor. Sor. Sam. Kor. are the only titles over which registerable right of ownership or lease can exist, and are as such the only ones that a prudent foreigner should consider.
Below the Chanot and N.S.3. title there are a host of other forms of land claim document such as the Sor. Kor. Nueng (S.K.1)., the Tor. Bor. Tor. Hoc. (T.B.T.6) and the Tor. Bor. Tor. Ha.(T.B.T.5.). These rights are essentially a form of squatter or settler's claim which has been filed with the district office and upon which a small fee has been paid. Unlike the Chanot and N.S.3.. it is neither possible to register a sale or lease over these land rights, nor will a bank accept them for collateral and most importantly one cannot apply for (or obtain approval to) build on such land. In certain circumstances, based on the length of the claim and the use to which the land has been put, it is possible to upgrade these land claims (to N.S.3. or Chanot title). The steps involved in such an application and the number of government departments required to approve such an application (where such approval is often discretionary) is however quite daunting and most definitely not recommended to anyone without the best of connections at the district, provincial and (in many cases) national level.
The newer Sor. Bor Kor. titles are very different to the above claims. These are true title deeds, accurately surveyed and pegged (like a Chanot). They may be mortgaged, planning permission for development may be sought and granted. The one significant thing that may not happen with a Sor. Bor Kor, is that it may not be sold or transferred (except under last will and testament). Many expect that this limitation will change in time or that the titles can be quickly upgraded to a full Chanot. This is not a universal interpretation of the intention of the new titles and it may be unlikely that any upgrading will granted in the near future.
