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Thailand Real Estate law is a complex area of jurisprudence. Many people, particularly foreigners, have misconceptions regarding what type of property rights can be accrued by non-Thais living in Thailand. First there is the mistaken belief that foreigners cannot own land. In reality, there is merely a de facto prohibition regarding foreign land ownership. A foreigner can own land in Thailand, but he or she must obtain approval from the Thai Minister of the Interior which can be a difficult proposition.

Another slightly incorrect idea circulating in the Thailand expat community is that one cannot obtain a lifetime right of use in any type of Thai real estate. However, it may be possible to acquire a usufruct which would give the person holding the usufruct the right to use the land or the structures thereon for their lifetime.

A 30 year Thai lease can also be acquired for Thai property, but it must be properly registered with the local land office. Another common misconception is the idea that one can have a 3 year “automatically renewing” lease in Thailand. This mistake would seem to stem from the fact that an unregistered Thai lease is enforceable for up to 3 years, but one needs to continually get a new lease from the land owner in order for the lease to rollover.

Recording a Thai mortgage is one method often employed by foreigners resident in Thailand who finance the purchase of property in a spouse or loved one’s name. If the foreign national ever wishes to retrieve their interest in the equity of the property, then all they need to do is foreclose on the property in order to re-acquire their funds.

There are some issues when it comes to recording these types of property interests where a third party has encumbered the Thai property by recording a mortgage at the land office. Thai banks often provide mortgages on Thai property and in order to obtain some sort of property interest in the encumered real estate one must first obtain permission from the bank. Therefore if one wishes to obtain a 30 year lease or a lifetime usufruct on the encumbered real estate owned by another, then it may be wise to contact the bank which holds the mortgage and inquire as to their position on recording leases on property they have an interest in. Sometimes, retaining the services of a competent Thailand property lawyer can be beneficial in such matters particularly as an experienced Thai real estate attorney can predict the likelihood of bank acquiesence.

Tags: Thai Lease, Thai Mortgage, Thailand Property Law, Thailand Property lawyer, Thailand Real Estate Law, usufruct
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Thailand is a very large and somewhat polyglot Kingdom. There are many different dialects of Thai as well as many religious and cultural traditions present throughout the Kingdom. Keeping track of the comings and goings of the Thai citizenry can be a difficult task, luckily there are Thai Immigration authorities deal with these concerns. However, a more important concern, particularly for the common Thai person, is keeping track of the vital statistics records for those resident in the Kingdom of Thailand.

A Thai Amphur office (spelled Amphoe or Ampoe) is best described as a civil registry office. The office is tasked with keeping a record of Thai marriage, Thai divorces, births in Thailand, deaths in Thailand, recordation of Thai prenuptial agreements, and in limited circumstances recordation of Thai wills. In a way, the Amphur office is something of a “Jack of all trades,” office. Another accurate name for this office is a “civil registry.”

Even though the Amphur’s legal mandate does not involve registration of Title deeds for Thai property or Real Estate, a really major part of the Amphur’s role in the Thai bureaucracy involves Thai household registration. A Thai household registration booklet, also known in the Thai language as a Tabien Baan (or Tambien Baan), records the place of a household and the head of the household. It further records how many people live in that household and their names and ages.

The Amphur office maintains the database of this information and is the office that must be used in order to change information listed on the Tabien Baan or when adding a new member to the Thai household registry. Contrary to popular belief, it is possible for foreign nationals to obtain a tabien baan or be registered on an already existing tabien baan. That being said, the only type of Tabien Baan that a foreigner may be listed on is a yellow tabien baan which is different from the blue tabien baan. A blue tabien baan is reserved for Thai citizens and foreigners with Thai permanent residence. It should be noted that the ease of getting on a yellow tabien baan will likely depend upon the office with jurisdiction over the household because local office procedures can differ and this could result in relative difficulty for the prospective registrant.

Foreigners can get married at a local Amphur office regardless of citizenship. However, the procedure for getting two foreign nationals married depends upon each person’s nationality. A person’s nationality and their Embassy’s protocols can affect the marriage process. It is wise to do research or contact an attorney before beginning the marriage registration process.

Tags: Amphoe, Amphur, Tabien Baan, Thai Amphur, Thai Property, Thai Real Estate, Thailand Marriage Registration
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thai Family Law, Thailand Marriage Registration, Thailand Property, Thailand Real Estate | No Comments »

The government of the Kingdom of Thailand has announced that they will be launching investigations into the buying of agricultural Thai real estate by foreign nationals in the Kingdom of Thailand.  Apparently there have been rumblings among the Thai farming community concerning an influx of foreigners buying land in Thailand in order to grow crops for eventual sale on the open market.

Many individuals are concerned that a foreigner will use a Thai company to own land and thereby circumvent the laws on the books regarding foreign real estate ownership. The Nation Newspaper in conjunction with ThaiVisa.com is reporting on the issue, to quote their article:

“Concerned Thai officials will continue monitoring whether foreigners have violated law on buying or renting farmland to engage in agriculture in the kingdom although initial investigation found that such a practice does not exist, Deputy Commerce Minister Alongkorn Ponlaboot said on Saturday…Farming as an occupation is reserved for Thais only and the probe was conducted following an outcry by some farmers that foreigners have bought numerous plots of farmland here and hired farmers to provide the labour.”

People moving to Thailand or wishing to live part time in the Kingdom should be aware of the somewhat xenophobic attitude of many Thai people when it comes to the subject of Thai property law. Regulations regarding Thai real estate reflect a negative attitude toward foreign ownership of Thai property. Many Thai people consider Thai property ownership to be a right that ought to be held in reserve for Thai citizens. That being said, there are exceptions to this general mood. Most Thai people do not see a problem allowing foreign nationals to own a Thai Condo in freehold. Further, obtaining a Yellow Tabien Baan (foreign house registration booklet) is becoming somewhat commonplace. However, this nonchalance does not extend to feelings regarding ownership of farm land and Thai government policy is a reflection of these feelings.

Evidence of this attitude can be found throughout the Thai foreign business act. A Thai company that is owned by a foreign national is specifically barred from engaging in business activities involving Thai farming. Even the US-Thai Treaty of Amity specifically precludes land ownership and agricultural activity. An Amity Treaty Company, although accorded preferential “national treatment,” is still subject to somewhat stringent regulation regarding Thai agriculture.

With the current global economy still in a somewhat less than optimal condition, it seems logical to assume that these restrictive measures will remain part of the law of the Kingdom of Thailand. It does not seem likely that the Thai government will allow foreigners to engage in farming activities in the near future.

Tags: Amity Company, Amity Treaty Company, Tabien Baan, Thai Company, Thai Farm land, Thailand Property Law, Thailand Real Estate Law, US-Thai Treaty of Amity
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In recent weeks there appears to be an upward trend in the Thai property market. Looking at the situation strictly from the standpoint of a foreign attorney, more people seem to be looking into purchasing Thai property. That being said, what type of Thai property is seemingly in demand?

There seems to be renewed interest amongst foreign nationals in obtaining a Thai Condo. These Condos often have the benefit of conferring foreign freehold ownership to the foreign national in the Thai Title Deed. Further, by obtaining a foreign freehold Title deed, the foreigner would likely be able to obtain a Yellow Tabien Baan, which is a house registration specifically designated to non-Thai nationals. Although somewhat difficult to obtain, there are many benefits associated with a Tabien Baan. Another benefit to the owner of a Thai condo: easier obtainment of a Thai O visa.

Aside from the legal benefits of purchasing Thai real estate, it would also appear as though the property market has stabilized and demand is on the rise. Many people take the view that the Thai property market has “bottomed out,” although we cannot make speculations as to the accuracy of this claim, the plausible argument could be made that the seemingly continuous descent of the property market is at an end.

What does this mean for the potential buyer? For starters, it means that one should carefully weigh all options before making a decision to buy property. Further, a prospective buyer should conduct due diligence in order to ensure that the property in question is valuable and the seller does in fact have the right to the property he wishes to sell.

Often when buying Thai Condos, it is wise to wait until a building is actually built before putting any money down as a deposit. Unfortunately, Thailand is rife with stories of unsuspecting buyers who put up a down payment on a property development only to see the developer go bankrupt before the building was completed thereby leaving the prospective buyer with a deposit down on an unconstructed untitled piece of property. in order to avoid situations such as this it may be wise to retain a property lawyer.

Finally, with the Thai property market apparently on the upswing, transaction taxes and fees may be on the rise as well. Since the Thai government imposes land transfer fees based upon the price of the Real Estate rising prices may create an environment of rising fees.

(Nothing Contained herein should be construed as legal advice. No attorney client relationship, express or implied, is created by reading this piece.)

Tags: Tabien Baan, Thai Condo, Thai O Visa, Thai Property, Thai Real Estate, Thai Title Deed, Thailand Property, Thailand Real Estate
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The Tabien Baan, or document proving House Registration, is distributed by a village, city, or other  municipal authority. The Tabien Baan (sometimes spelled Tambien Baan) reflects the residents who live at a specific property (this document is not used as proof of Real Estate ownership, for that one must have a Thai Chanote or Title Deed). The Tabien Baan (House Registration) is issued to Thai Citizens and is used as a permanent address for service of process and other official mailings.

A Tabien Baan is an extremely important document for Thai nationals because it acts as proof of a Thai person’s residence. Therefore, it is used to determine a Thai person’s voting district and in the case of Thai men of military age, the Tabien Baan is used to ascertain what district the Thai man will be placed in when drawing for the military draft. This can be critical because if one district reaches a certain level of volunteers then it is not necessary to further draft any inhabitants of that district. As a result, a Thai man’s House Registration (Tabien Baan) can have a massive impact upon their life and career depending upon the district in which they live.

Can a Foreigner (Farang) Get a Thai Tabien Baan?

For a foreigner (farang in Thai) it may be possible to be registered on a Tabien Baan in Thailand if:

1. the foreigner has acquired a Thai lease that has been legally registered at the Thai land Department
2. the foreigner has used a Thai company to buy land in Thailand (This is becoming less common as the Thai Land Department officials are more heavily scrutinizing cases involving a Thai Company to own land.)
3. the foreigner has bought a Thai Condo as a freehold Title owner pursuant to the Thai Condominium Act

A Tabien Baan issued to a foreigner residing in Thailand is generally referred to as a “Yellow Tabien Baan” because the booklet is the color yellow. Yellow Tabien Baan’s are becoming increasingly difficult to obtain because the local Amphur office (or Khet office in the Bangkok Metropolis) is reluctant to issue Tabien Baan’s to foreign nationals.

There are some benefits to having a Tabien Baan in Thailand. Most notable is the fact that a foreigner can obtain a building permit based upon a Tabien Baan and as a result could more easily obtain a superficies for structures built upon a piece of Thai property. Thai banks are also more cooperative about granting Thai mortgages to foreigners who are noted on a Tabien Baan.

Those with Permanent Residence in Thailand can be placed upon a blue Tabien Baan in the same way as a Thai National. However, this does not denote Citizenship nor voting rights, it is simply an administrative change based upon the foreigner’s residential status.

The Tabien Baan may become an important aspect of the USA visa process as well. For those Thai nationals applying for a K1 visa or a K3 visa, the Tabien Baan may be requested in order to prove the Thai’s residence in Thailand.

(Please be aware that this information is imparted for educational purposes only and does not constitute legal advice. No Lawyer/Client fiduciary relationship is created by reading this posting.)

Tags: Buy Land in Thailand, Foreign Tabien Baan, Tabien Baan, Tambien Baan, Thai Tabien Baan, Thailand House Registration, Thailand Property Law, Thailand Real Estate Law, Thailand Tabien Baan, US Visa Thailand, Yellow Tabien Baan, Yellow Tambien Baan
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Property, Thailand Real Estate, US Visa Thailand | 5 Comments »

A little known fact: Thailand is one of the few countries not colonized by the British that gave serious thought to adopting the common law. Had Thailand opted to become a common law nation the legal system would probably look very different today. Thailand is a “Civil Law” country and as a result, Thailand Real Estate law and Thai Property regulations are promulgated through the Thai Civil and Commercial Code.

There are two property rights which are relatively uncommon in English speaking countries: the usufruct and superficies. These two legal mechanisms can provide a wide range of property rights to the person who employs them. The following is an explanation of these two legal concepts for those wishing to enjoy property rights in the Kingdom of Thailand.

A usufruct grants the person holding the usufruct with the right to enjoy the use of the land in Thailand. A usufruct can be extremely beneficial because it can be written in such a way that a foreigner can be granted lifetime enjoyment of property. That being said, should the foreigner decide to place structures upon his usufruct, then those structures may need to be abandoned if and when the usufruct comes to an end.

This is where a right of superficies comes into play. The Civil and Commercial Code of Thailand makes provisions regarding superficies, the law states:

When the right of superficies is extinguished, the superficiary may take away his buildings, structures or plantations, provided he restores the land to its former condition.

Therefore, a usufruct is a very useful legal instrument because it could allow a foreigner to have lifetime enjoyment of property, but the foreigner may lose his rights to his or her structures should the usufruct expire (either during his lifetime or upon his death). By utilizing a superficies a foreigner could better protect his or her interests with regard to a Thai usufruct.

It should be noted that the holder of both a usufruct and superficies can assign his or her rights in the provisions of an instrument like a Thai lease or rental agreement. Generally, a lease such as this would expire upon the death of the usufruct holder, but Thai courts have held that leases written upon usufructs shall remain binding past the date of the usufruct holders death. The leasee in that situation would be required to continue paying the originally agreed upon payments, but the payments would be made to the underlying land owner after the usufruct holder’s death. Keep in mind that this rule was made pursuant to a Thai Supreme Court decision. Since precedent is not binding in Thailand, this may not be a hard and fast rule.

For more information regarding this subject please see: Thailand Real Estate FAQ or Thai Condo law

(Please be advised: This is not legal advice it is a personal opinion. No attorney-client relationship should be inferred to exist between the writer and any reader of this post.)

Tags: Property Lawyer Thailand, superficies, Thai superficies, Thai usufruct, Thailand Property, Thailand Property Law, Thailand Real Estate, Thailand Real Estate Law, Thailand Superficies, Thailand usufruct, usufruct
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Many Expatriates resident in the Kingdom of Thailand eventually come to the point where they wish to purchase property. In many cases, particularly in Bangkok, a Thai Condo will suit their needs perfectly. However, there are many people who do not wish to live in a Thai Condominium. These people often opt to purchase some form of Thai Real Estate.

One of the major problems that comes with purchasing Real Estate in Thailand is the de facto prohibition on foreign ownership of land in Thailand. Some people decide to use a Thai company to own land. This is possible although one needs to carefully construct the corporation so as not to violate the relevant laws regarding Thai “nominee shareholders.” Other less advisable methods are employed by foreigners to enjoy the benefits of property in Thailand. In some cases, a Thai spouse will put her name on the “Chanote” (Title Deed) while the foreign spouse actually pays for the property. This can be very disadvantageous because in transactions such as this the Thai Land Department will often require that the foreign spouse sign an affidavit explaining that the Thai property in question was not purchased with money provided by the foreign spouse and as a result the foreign spouse shall have no claim to the Thai property.

These type of disadvantageous scenarios create a situation where the foreigner’s interests must be protected while also remaining legal pursuant to the provisions of the Thai Civil and Commercial Code. In cases such as this, some foreign nationals opt to record a Thai lease. This instrument would provide property enjoyment rights for a maximum of 30 years. Another method that could be employed by a foreigner is the recording of a Thai Mortgage. This method would have the benefit of securing the foreigner’s monetary interest in the property. However, in many cases, the foreigner simply wants to have his interests in his home protected.  If this is the case then it may be best to bifurcate (split) the Title of the Real Estate.

Under Thailand Property Law there are ways of splitting the Thai Title Deed of a residential property. Basically, the foreign national could be designated as the Title holder of the physical residence (house) while the Title to the land remains in the name of a Thai national. By bifurcating the Title in such a way, the foreigner’s interests are better protected. That being said, it would probably be wise to contact a Thailand property lawyer to assist with creating the proper legal instruments as bifurcating Thai Title can be quite complicated and requires dealing with the Land Department of Thailand.

For more information please see property lawyer thailand or bangkok lawyer

(Please be aware: this piece is not legal advice. No lawyer-client relationship is formed by reading this blog post.)

Tags: Chanote, Property Lawyer Thailand, Real Estate Lawyer Thailand, Thai Chanote, Thai Condo, Thai Lease, Thai Mortgage, Thai Property, Thai Real Estate, Thai Title, Thailand Condo, Thailand Property, Thailand Property Law, Thailand Real Estate, Thailand Real Estate Law
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The government of the Kingdom of Thailand has erected many protectionist economic measures. One of the most prevalent legal restrictions imposed upon foreigners in Thailand is the de facto prohibition on land ownership under Thailand Real Estate Law. There is a common misconception that foreigners are not allowed to own land. Technically, this is not the case. In reality, the law states that a foreigner may purchase Thai Real Estate if he or she obtains approval from the Minister of the Interior of Thailand. As a practical matter, obtaining this approval is extremely difficult, if not impossible. The upshot of these restrictions is a virtual bar on foreign ownership of Thai Real Estate.

In Thailand, a freehold Title deed is known as a “Chanote.” Due to the aforementioned legal restrictions it is a virtual impossibility for a foreign national to obtain a Chanote for Thai property. That being said, some years ago the Thai government carved out a legal niche whereby a foreigner could obtain a Freehold Title to a Condominium in Thailand. This exemption is subject to certain conditions. First, the Condo must meet the definition of “Condominium” under the act which means that the paperwork for the building must be completely in order. Another very important aspect of this legislation is the fact that a foreign quota is imposed upon a condominium complex. The law states that foreign ownership may only account for 49% of a condominium’s total number of units. The other 51% must be set aside for those of Thai nationality.

This foreign quota provision can lead to a problem because Condos that are highly desired or in desirable areas are not available for foreign purchase. Further, it can be a great disadvantage to Condominium developers in Thailand because there is generally an income discrepancy between foreign and Thai property buyers. As a result, legal devices are sometimes utilized to circumvent the foreign freehold quota on a Thai condo.

For many years, the classic method of providing foreign control of Thai real property was through the use of a Thai Company to own land. In the recent past, the Thai parliament passed legislation which outlawed the use of “nominee shareholders” in ostensibly Thai companies to own real estate. This mechanism has been employed by Condominium developers to get around the freehold quota. Basically, the developer sets up a Thai company, sell the condo to the company, and then sells the company, that now owns an otherwise quota restricted condo, to a foreigner. As a result, the foreigner owns a company which owns a condo in freehold that could not be legally purchased outright. As with any corporate structure involving “nominees,” the use of nominees is prohibited, but the definition of “nominee” is left somewhat vague under Thai law. Specialized legal advice should be sought where corporate structures are utilized for property ownership.

For more on Special Exemptions under Thai law for foreigners please see Amity Company Thailand

(This article is not legal advice. For such advice contact a licensed lawyer. No Lawyer-Client relationship is formed by reading this piece.)

Tags: Property Lawyer Thailand, Real Estate Lawyer Thailand, Thai Company, Thai Company Registration, Thai Company Setup, Thai Condo, Thailand company, Thailand Condo, Thailand Condo Law, Thailand Property, Thailand Property Law, Thailand Real Estate, Thailand Real Estate Law
Posted in Thailand Business, Thailand Property, Thailand Real Estate | No Comments »

An odd question came up while I was in the office today. A married couple (one Thai and one non-Thai) was researching Thailand property ownership and after going over the usual information regarding Thai Leases, Thai Mortgages, and uses of Thai Limited Companies for property ownership a more interesting question arose. All of the questions surrounding their prospective property were routine, but then the conversation turned to Thai Wills and what would happen to the Thai Real Estate upon the death of the Thai husband.

Pursuant to sections of Thai law it is illegal for foreigners to own land without the written approval of the Thai Interior Minister. As a practical matter, obtaining written approval from the Interior Minister of Thailand is difficult, if not downright impossible. This brings up a conflict of laws because when a Thai will speaks during the Thai probate proceedings, ownership of property that was owned by a Thai could be passed to a non-Thai. What happens to this property since it is essentially illegal for a non-Thai to own land?

Thai law deals with this issue in a quintessentially Thai way. The law says that the property must be sold within 6 months of the closing of the Estate. In the United States (as well as other common law countries) probate of wills entails the closing of a deceased person’s estate. Generally Judges in common law countries wish to get estates closed as quickly as possible. In Thailand, Thai Judges are not as expeditious in getting wills probated and estates closed. The upshot is that estates will stay open for years and in some cases decades.

The practical implication of this failure on the part of Thai probate courts to quickly close estates creates a situation in which a foreigner in Thailand can maintain de facto ownership and control of an inherited piece of real estate provided the estate stays open. Should the de facto owner decide to sell the property, then all he or she would need to do is close the estate, legally inherit the property, and execute a sale. This process is probably more complicated than this and a possibility always exist that a court would close the estate quickly, but at present this does not appear to be the case.

(Please Note: Nothing written herein should be used in any way as a substitute for personalized legal advice from a licensed attorney. No lawyer-client privilege or relationship is executed between reader and author of this piece.)

Tags: Thai Probate, Thai Real Estate, Thai Will, Thailand Probate, Thailand Property, Thailand Will
Posted in Thailand Real Estate | No Comments »