Buy, sale and transfer of a Thai house or building (property law)

| Superficies law start | Real Estate Agreements | Land lease agreement |

A house or building in Thailand, as distinct from its land, can be owned and transferred separate from its land. A Thai houses does not have any form of title document but is an immovable property under Thai law. As an immovable property the transfer of ownership must be in writing and completed with the competent authority (i.e. the Land Department).

Buying a real estate property (land and house) by foreigners in Thailand generally involves a leasehold arrangement (as foreigners can't own the land) in which the house is owned by the foreigner or leased together with the land. The sale structure could involve a land lease agreement, land and house agreement, or in case of an existing house a land lease agreement and a separate sale and purchase agreement for the house. When buying in a development in an 'off the plan' purchase or a building under construction instead of a sale agreement for the house a construction agreement could be offered. In this case the building permit should be issued in the foreign purchaser's name.

The document of ownership over a house in Thailand is: (1) the building permit (the person named in the building permit is assumed the owner of the building), or (2) the official Thai script sale agreement of a structure, as issued and administrated by the local land office. Not the house book.

The least beneficial structure for foreigners and legally the weakest structure for obtaining a long term interest in real estate in Thailand is a lease agreement for both land and house. Ownership over the house should be obtained separate from the land, preferably combined with a registered right of superficies in addition to a land lease, specifying the foreigner's rights to own the house upon the land. The superficies specifies the foreigner's rights to the land and offers additional protection to the lease (e.g. you could lose your rights under a land lease agreement, but your rights under the right of superficies could remain enforceable).

A Ta.Bian.Baan or Tabien Bahn is an administratative document which gives the address of the house and states the persons who live in it (it could state the name of the owner but not necessarily). There are 2 types of Ta Bian Baan: 1 The blue Ta Bian Baan (Thor.Ror.14) for Thai nationals and 2 the yellow Ta Bian Baan (Thor.Ror.13) for foreigners. Non resident foreigners can usually only be registered as the owner of the house in a yellow book. The house book is not proof of ownership, but merely an administrative document issued by the local Amphur.

Rights to own a house or building upon another man's land relates directly to the rights to use or possess his land. If you loose your rights to the land (right of superficies, lease rights, right of usufruct) you loose the rights to own the building upon that land.

The official process of transferring an existing house in Thailand

• The parties must present themselves at the local land office to announce the sale. This is part of the official process and separate from the private sale and purchase agreement between the parties (if a party can't attend the land office (e.g. the foreigner is abroad) a proxy can be appointed. In this case the official land office power of attorney form (document Tor-Dor 21) is required)
• Documents required: Tor-Dor 21 (if applicable), building permit or previous land office sale agreement, Ta bian Baan, ID's of the parties (passport or ID-card)
• The land office will issue 4 copies of the notification of the sale of a structure ( public notice), to be put up at the Or Bor Tor, the District Office, the Kamnan Office and at the building itself for a 30-day announcement (to see if anyone wishes to contest ownership)
• After the 30 days public notice period the parties must present themselves again to sign the official land office sale agreement which effectively transfers ownership.

Proof of ownership of the house can be either the official land office sale agreement, as signed at the land office, or the construction permit in the owner's name.

• Order a Land Lease agreement
• Order a Right of Superficies agreement
• Order a Right of Usufruct agreement
• Order a construction agreement

Related information:

• Hire of property in Thailand explained
• Thailand transfer tax on immovable property
• Building and land tax
• If you would like more information, please click here

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Tags: Real Estate Ownership, Thailand