Thursday, September 09, 2010
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Inheritance Real Estate

Thailand Inheritance of Real Estate by Foreigners

Inheritance of land

Section 93 of the Land Code Act: 'A foreigner who acquires land by inheritance as statutory heir can have an ownership in such land upon a permission of the Minister of Interior. However, the total plots of land shall not be exceeding of those specified in Section 87'.

Reading section 93 of the Land Code Act you could think that a foreigner who has legally married a Thai national is as a statutory heir entitled to land ownership and could to request for ownership in land as a statutory heir.

Permission must be obtained from the Ministry of Interior and the Minister of Interior shall have the sole discretion to grant permission. In practice no Minister will give permission, because the over 50- year old section 93 of the Land Code Act must read in combination with section 86 Land Code Act;

'aliens may acquire land by virtue of the provisions of a treaty giving the right to own immovable properties and subject to the provisions of this Code'.

The last treaty was terminated in 1970 and there is currently no treaty with any country to allow a foreigner to acquire land in the Kingdom nor is there a legal ground (like a Ministerial Regulation) for the Minister of Interior to allow any foreigner as inheritor under will or as statutory heir (including a foreigner who has legally married a Thai national) to inherit land in Thailand.

Inheritance of a condominium unit

A foreigner who acquires a condominium unit by inheritance either as statutory heir or inheritor under will shall automatically have an ownership in such unit. However, the Condominium Act B.E. 2522 divides foreign heirs and successors in qualified and unqualified foreigners.

If a qualified foreigner inherits a condominium he can register ownership, unless registration in the foreign (qualified) heir's name would exceed the foreign ownership quota. In this case it is required by law that the unit shall be disposed by the foreigner either by selling or giving to other Thai persons within 1 year from the date of acquisition of such condominium unit. If the foreigner fails to do so, the Director-General of Land Department shall have power to sell it on the foreigner's behalf.

Unqualified foreigners (i.e.not mentioned in section 19 of the Condominium Act) shall shall notify in writing the competent official (Land Office) within a period of sixty days from the date of acquisition of ownership of the apartment unit and shall dispose of such apartment within a period of not exceeding one year from the date of acquisition of ownership of apartment (section 19 septum Condominium Act).

Section 19 of Condominium Act B.E. 2522, as amended by Condominium Acts No. 1 – No. 4. Alien and juristic persons regarded by law as aliens may hold ownership of an apartment if they are the following:

  1. Aliens permitted to have residence in the Kingdom under the immigration law (qualified to hold ownership within the foreign ownership quota of a condominium).
  2. Aliens permitted to enter into the Kingdom under investment promotion law (qualified to hold ownership within the foreign ownership quota of a condominium).
  3. Juristic persons as provided in Sections 97 and 98 of Land Code and registered juristic person under Thai law (qualified to hold ownership within the foreign ownership quota of a condominium).
  4. Juristic persons which are aliens under the Announcement of National Executive Council No. 281** dated November 24, B.E. 2515 and have obtained promotion certificate under investment promotion law (qualified to hold ownership within the foreign ownership quota of a condominium).
  5. Aliens or juristic persons regarded by law as aliens who have brought in foreign currency into the Kingdom or withdrawn money from Thai Baht account of the persons who have residence outside the Kingdom or withdrawn money from foreign currency account (qualified to hold ownership within the foreign ownership quota of a condominium).

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