How To Protect Your Property Rights In Thailand

While acquiring properties in Thailand, most foreigners are perplexed by the contradicting information and misleading claims in the Internet. So what are the legal issues?

There are several reasons for a foreigner to invest in offshore properties, such as settling-down in the spouse's home-country; purely for investment because the real estate is affordable than one's own country; summer home or just a home for retirement. There are five ways...

1. Land lease
While Thailand real estate law limits land ownership rights to non-Thais, it is possible to hold 100% interest. Thailand lease law allows a 30-year maximum lease period with the possibility of renewing it for another 30 year period.

Although you legally lease the land, all the buildings you meliorated or built are yours freehold. In other words, once the lease expires, the owner of the land must purchase the building(s) on the basis of an independently and lawfully valued price or negotiate another lease period.

2. Company ownership
In accordance to Thai registered companies with majority Thai ownership, foreigners can take an interest in the real estate as minority shareholders.

3. Investment
Thai real estate law permits foreigners to purchase and own a limited amount of land for five consecutive years base on an investment of 40 million Baht, on condition that the land is used for residential purpose.

4. Thai spouse
A non-Thai spouse can be allowed to buy land or property in Thailand in his or her own name, on condition the married couple sign declarations at the Land Department to state that the funds used are the separate property of the Thai spouse, thereby waiving any claim on the land or property by the non-Thai spouse.

However, problem may surface in a divorce proceeding because it may be difficult for the non-Thai spouse to prove that the land was marital property. Nevertheless, a cleverly drafted Thailand prenuptial agreement may reduced the risk to the non-Thai spouse.

5. Usufruct habitation and superficies
A usufruct is a right to use and profit from the land similar to leasehold but is non-transferable with some essential differences. This enables non-Thais to possess life term interest in certain types of property rights in Thailand.

~ Chanote Ti Din - provides you incontestable possession because the land has been accurately surveyed.

~ Nor Sor Sam or Nor Sor Sam Kor - less precisely surveyed than Chanote titles but are land title deeds of undispute records of ownership and may be sold or leased.

~ Sor Kor Nung, Tor Bor Tor Hoc and Tor Bor Tor Ha - the land cannot be legally sold nor can you build on the land because it is essentially a squatter's rights registered at the district office for a small fee. Be a smart foreigner and ignore the "Sor Kors" and "Tor Bors".

~ Sor Bor Kor - basically it is a true title deeds, precisely surveyed and pegged like a Chanote. It cannot be leased, sold or transferred BUT can be mortgaged and developed.

It is in the hope, the above are some effective advice to a foreigner who wish to acquire properties in Thailand...http://acquiring-property-thailand.weebly.com

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