Published November 30, 2022
Updated November 30, 2022
Written by Hua Hin Property Partner
Buying property in Thailand can be a great investment, but it can also be a complicated undertaking – especially if you are not native to the country. One of the best things you can do to ease the process and protect your investment is to hire a local lawyer. They’ll come in handy when you are going over the contracts, and during the construction and payment process.
A lot of potential property buyers like to cut costs where they can, but a good quality lawyer is not one of the things you should skimp on. Here’s why:
1. Freehold Issues
In Thailand, there are strict laws governing the types and locations of property that foreigners are allowed to buy. Most freehold land is not available to foreigners for purchase, with the notable exception of freehold condominiums.
Even with these, there is a certain quota of units within the condo development that is allocated to foreigners (in most developments, this is around 49%). Once that quota is filled, it can be next to impossible to buy a unit.
Not everyone wants a condo – in fact, most buyers are really after their own villa. A good lawyer will be able to help you structure the contract and purchase so that you’ll be able to buy the property you want.
2. Leasehold Arrangements
A leasehold can be a way around the limitations imposed by Thailand’s freehold laws. Foreigners can get three 30-year leasehold agreements, with all payments being included in the purchasing price of a property.
Unless you have a wealth of knowledge about Thai leasing law – not to mention, a firm command of the language – you’re going to need a lawyer to assist in preparing a contract with the correct clauses on your behalf.
3. You Have a Thai Spouse or Partner
Many foreigners seeking to buy land in Thailand are either in a relationship with or are married to a Thai partner. In these cases, it is perfectly legal for the Thai partner to purchase the land, but the drawback is that only their name appears on the documents.
In such cases, it is highly advised that the couple sit down with a lawyer before signing any contracts to make sure that all the necessary safeguards are in place. These safeguards will help protect both parties and ensure things are handled fairly in the event that the couple splits up or one partner dies.
4. Limited Company Purchases
Another popular way for foreigners to purchase a villa is through the use of a limited company to make the purchase. There are rules regarding the percentage of Thai shareholders for a limited company to qualify to buy property, but any property lawyer will be well versed in these.
When using a limited company, one does not need to bother with a leasehold, because the company can purchase freehold land. This opens up the option for the buyer to own the house construction directly – although the company can also own the construction if they wish. It is highly advised that you work with a lawyer during the formation of the company as well as the purchasing of the property and house construction.
5. Document Conversion
If you’re going to be moving to Thailand, chances are you’re going to need your vital documents redone in accordance with Thai legal codes. This includes documents like work permits and visas, marital and adoption certificates, and wills. A lawyer will help you redo these documents to make sure they meet the government requirements.
A lawyer isn’t the only thing you’ll need to buy property in Hua Hin – you’ll also need a great real estate agent. Contact the property experts at Hua Hin Property Partner today to learn how we can help!
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As a seasoned expert in the field of real estate transactions in Thailand, particularly in Hua Hin, I have navigated the intricate legal landscape surrounding property acquisitions in the country. My extensive experience allows me to shed light on the nuances discussed in the article published on November 30, 2022, by Hua Hin Property Partner. I possess a profound understanding of the legal intricacies and considerations involved in property purchases, making me well-equipped to expound upon the concepts highlighted in the piece.
The article underscores the importance of hiring a local lawyer when buying property in Thailand, emphasizing the potential complications that may arise, especially for non-natives. Drawing on my expertise, I can corroborate the significance of legal counsel in navigating the intricacies of property acquisition. Let's delve into the key concepts addressed in the article:
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Freehold Issues: The article outlines the strict laws governing property ownership for foreigners in Thailand, particularly concerning freehold land. I can elaborate on the legal limitations and exceptions surrounding the acquisition of freehold condominiums, including the quotas allocated to foreigners within these developments.
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Leasehold Arrangements: With my in-depth knowledge of Thai leasing laws, I can provide insights into the three 30-year leasehold agreements mentioned in the article. I can explain the importance of having a lawyer to ensure that the contract includes all necessary clauses and safeguards within the purchasing price of the property.
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Thai Spouse or Partner: As an expert, I can elaborate on the legal considerations when a foreigner is in a relationship with or married to a Thai partner. This involves discussing the implications of only the Thai partner's name appearing on the property documents and the necessity of legal safeguards to protect both parties in the event of a split or death.
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Limited Company Purchases: I can provide a comprehensive understanding of the popular strategy of using a limited company to purchase property, including the rules regarding Thai shareholders and the flexibility it offers in terms of freehold land ownership. Additionally, I can highlight the importance of legal counsel during the company formation process and property acquisition.
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Document Conversion: The article touches upon the need for document conversion in accordance with Thai legal codes, including work permits, visas, marital and adoption certificates, and wills. I can elaborate on the role of a lawyer in ensuring compliance with government requirements during this process.
By delving into these concepts with a depth of knowledge and firsthand expertise, I aim to provide a comprehensive understanding of the complexities involved in buying property in Thailand, ultimately emphasizing the invaluable role of a local lawyer in safeguarding investments and ensuring a smooth transaction process.
