The Pitfalls Of Buying Property In Thailand

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Understanding the laws and procedure of buying land or property in Thailand for someone arriving in the country for the first time can sometimes become confusing. The truth is that with the correct legal advice you can be protected.

The most common scenario in Thailand is that a foreign national (farang) arrives in Thailand ,falls in love with a beautiful Thai lady who then takes him to her home village and tells him that her grandmother has this wonderful plot of land and she will sell it at a very reasonable price or if he is “lucky” give it to them to build their dream home.

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Anyone finding themselves in this position should ask themselves a few questions! Are there any other farangs in this area that I may be able to speak to occasionally?

Will I be able to speak to anyone in my own language? If you only have the family and the local people from the village, after a few months it could get a little bit boring.

How many kilometres is it to the nearest town?

Can I get Internet/Wi-Fi ?

Although Thai food is fantastic, after a few weeks you will want to eat a farang meal. How far do I have to go, and will I still be sane after 6 months?

In the “western world,” when we have a divorce it is usually a 50 – 50 split.

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If you take the correct advice from a lawyer when you make your property purchase, the same can be achieved here in Thailand.

From an investment point of view, when you build a house in the village the value can never be recovered because of its location but your girlfriend or future wife will be able to show great “face ” to the local community.

Buriram Isaan Property can help you through the formalities of acquiring a property or business in Thailand.

Property Acquisition

The formation of a Thai Limited Company was a favoured way to purchase property in the past.

The legitimacy of such ownership depends on the status of the Thai shareholders who must be shown to be active and financially participating shareholders

There are two further alternatives;

If you have a Thai partner and purchase a property in their name ,you can then take out a 30 year lease on the property which is registered at the land office.

We are advised by our lawyers that any building on the land can be owned by a foreigner personally and registered as such at the Land Office.

Should your partner be your wife, then the above is not possible as you would then require a:-

Userfruct Agreement which as husband and wife allows lifetime entitlement for you to stay and live at the property.

Buriram Isaan Property make it clear that they are real estate agents and not lawyers.

Therefore they would advise their clients to take independent legal advice.

 

 

One comment on “The Pitfalls Of Buying Property In Thailand
  1. Mr. Pichai says:

    Excellent points you bring up Mr. Williams. Might I add, any expat should bring the land paper of said village property to the Buriram PEA office for a sit down to discuss EXACTLY what electrical service is possible that month for that exact plot of land. My bi-lingual translators who assist in the Foreigner Sales department of Ruangsangthai can walk across the street to see the expat gets a real answer to electricity. The exact same process can be done at the PWA water authority office. I certainly can sell well pumps, and no end to water filters, yet an expat can find out in advance what size water service is really possible on any plot of land in Buriram. Usufruct is a wise document, and saves paying taxes in a legal manner. A lease will incur taxes. Significant taxes as that is documented income for the land owner. No such tax need be paid on a registered Usufruct. My team is here to help expats and their spouses in Thai and English. Thank you, Mr. Pichai of Ruangsangthai. I can give you phone numbers of local respected Buriram lawyers, and of expat legal office owners in Korat and Bangkok.

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