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  • brian ramsden

Navigating Thailand's Property Market

We are #lawyersforexpatsthailand one of our specialized areas is #propertylawforforeigners

So you have moved to the land of smiles and you have seen your dream home and you have fallen in love with it.

It is stunning it is everything you have dreamed of and more.

It is so affordable compared to your own country.

It has a beautiful pool it is on a beautiful development it is your dream home.

I am about to share a real story the names and places will be changed to protect the identity of everyone involved.

Lawyers for Expats Thailand were contacted by client X who was looking to buy his dream villa in a popular destination in Thailand.

Client X a foreigner had seen the property advertised by a reputable real-estate agent and made enquiries.

He was introduced to view the property and met with the sellers who where also foreigners.

After discussing with the sellers and viewing the property he had decided he would offer the asking price and proceed.

The sellers lawyers quickly drafted a reservation form and took a deposit of XXXXX and were pushing for the sale to take place quickly and for the buyers to deposit further funds.

The sellers lawyers then proceeded to make a sales agreement between the sellers and the buyer.

The buyer reached out to lawyers for expats Thailand who began our #duediligence

The first red flag that alerted us that something was wrong was the sales contract from the sellers lawyers showed two foreigners as the sellers of the land and house.

Foreigners cannot own land in Thailand in their own name (normally).

So how can a foreigner sell you something they do not own?

Something was not right.

So we started our due diligence process by requesting the id card of the legal owner and copies of the land title deed front and back.

We were then sent an id card of a Thai person and copy of the land title front and back.

So the Thai person was the legal owner of the land and had leased the land and house to the Foreigners.

This explained how the foreigners had acquired the property which is totally legal to make a 30 years lease for the land or for the house and land in the case where the land has not been split from the building.

Points to note a 30 plus 30 plus 30 example 90 year lease is not legally binding and enforceable .

We requested from the sellers lawyers that they provided us a sales contract for the land from the legal owner and that the foreigners could prove ownership rights to the house and that they provided a separate sales contracts for the land and house.

On investigation the foreigners were not the legal owners of the house or land

it is possible to be the owner of the building but it has to be put in place correctly .

Having a lease does not give you the right to sell the land in fact it is illegal and against the terms of the lease.

Had this gone through it could have easily been revoked and the sellers and buyers would have been breaking the law.

It is important to follow the law and do not even think about setting up a company to own property in Thailand as a foreigner it is illegal for a number of reasons .


What would have happened if our client had not instructed us for due diligence?

The buyer rightly withdrew from the sale and we demanded the deposit back.

It could have been a different story if we had not intervened .

There are many people out there who think they own their house and land and in reality they do not.

Many have and are breaking the law without even knowing.

If you have any questions on property law or how to secure your investment in Thailand and how to follow the law contact us to arrange a Free Consultation

Tel +66956583038

There is no excuse to be caught out.

If you have already purchased property in Thailand we can review your paperwork to make sure everything is as it should be.

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