Foreigners and international juristic persons are allowed to own a condominium device in Thailand in their possess identify, but hold in mind that this refers to ownership of an condominium device in a condominium building registered under the Condominium Act of Thailand. Not all apartment structures in Thailand are registered below the Condominium Act. Unregistered apartment properties are widespread in the vacationer places of Thailand and foreigners are frequently not aware of the big difference amongst a device in a condominium registered beneath the condominium act and a unit in an unregistered condominium constructing. Both properties and units may possibly seem the very same, nonetheless, in case of an unregistered apartment the legal protection is constrained compared to the defense presented to the proprietors and purchasers underneath the Condominium Act, and only registered condominiums offer freehold ownership in excess of the models.
In scenario of an apartment building which is not registered under the Condominium Act the models do not have possession device title deeds (possession of the models is not lawfully divided from the building as a entire) and the models can only be leased as element of a creating, or the developing as a complete should be in joint ownership by all unit purchasers with each other, nonetheless, this will not contain the land the building stands on, as foreigners can’t very own land in Thailand. Only in SengKang Grand Residences location of a true condominium the specific models offer you freehold ownership and the land is jointly owned by all the unit house owners.
The principal doc of possession in a true condominium is the unit title deed issued and administrated by the neighborhood Land Workplace. The nearby Land Office is accountable for the transfer of possession and registration of possession of the person units in the condominium developing. The apartment device title deed is evidence of ownership. Evidence of possession must not be perplexed with a ‘house book’ in Thailand or Ta.Bian.Baan, which is an official document issued by the neighborhood Administrative Business office and consists of the complete deal with and the occupants of an condominium (not always the owner of the constructing or apartment). Apartments in a building not registered underneath the Condominium Act the units could have a independent Thai ‘house books’, nevertheless this should not be puzzled with an ownership document.
Freehold possession of condominiums by foreigners is restricted underneath the Condominium Act and the principal limitations / specifications for overseas possession are:
1. Not far more than forty nine% of the complete floor area of all units in a condominium developing included collectively may be foreign owned. In scenario of a hundred equivalent residences in a sophisticated 49 can be overseas-owned, the remaining fifty one have to be owned by Thai nationals.
In scenario the forty nine% quota for overseas freehold possession in a condominium project is ‘sold out’, the remaining models may be leased beneath a registered thirty yr lease agreement. There are no lease restrictions and regular ‘hire of property’ legal guidelines (as for land or house) use on condominiums.
2. To be suitable to sign-up ownership the foreigner who buys a device underneath the Condominium Act must bring foreign forex into Thailand, at minimum to an quantity equal to the total buy cost.
The managing lender in Thailand should exchange the forex into Thai baht and will situation a (FET-type) Overseas Trade Transaction form or Credit history Notice for scaled-down quantities. Without having proof of remittance of foreign currency into Thailand the Land Office will not register the condominium device into the foreigner’s title (unless of course you are a resident in Thailand).
As in all house investments (particularly in a international nation) it is crucial to employ the service of the services of a reliable law firm or dependable actual estate agent who can advice and aid you in the purchase and who helps make confident that every thing is checked out, the condominium is registered beneath the Condominium Act and to make sure the device is correctly registered into your name.
The units in an condominium constructing which is not registered underneath the Condominium Act the models can only be leased as ‘part of the building’ or jointly owned by all the purchasers. Each in situation of a long term rent (above three a long time) in excess of this kind of units or joint possession more than the developing as a total by the unit purchasers this should be registered at the nearby Land Business office the place the home is positioned. Unregistered residences require additional warning.