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Professional Assistance in the Thai Condominium Sale or Purchasing Process

By Ben Hart

Republish: EasyPublish™ Published: 03Mar2011 Word count: 429 Viewed: 188 time(s) Get Free Content For Your Site

The following piece is written with the intention that it be viewed as a brief overview of some of the issues which might arise in the context of the Thai property purchasing process. Those interested in further specific information are well advised to contact a licensed attorney in the Kingdom of Thailand.

From the outset of any investigation, foreign nationals thinking of purchasing property in the Kingdom of Thailand should be aware of the substantial legal and regulatory restrictions imposed upon them. Thai law effectively prohibits foreign ownership of Thai Real Estate by foreign nationals. Although foreign nationals may own real property in the Kingdom of Thailand clear Chanote title is only granted to foreigners pursuant to express permission from the Thai Ministry of Interior. Such permission to own property by foreigners is seemingly rarely granted. Therefore, in practical terms, foreigners are not generally granted the right to own Thai real estate. That stated, the posture of this factual situation exists with a few limited exceptions, most notably; the privilege that foreign nationals have pertaining to ownership of Thai Condominium units.

In the Kingdom of Thailand, what in the English language are often referred to as "condominiums" or "condos," essentially apartments which are sold in freehold to occupants; may be owned by foreign nationals in the Kingdom provided that such ownership comports with the Thai Condominium Act. The major restriction imposed by this act results in a situation where Thai Condominium Communities must have foreign freehold ownership of not more than 49% of the overall community. In many cases, foreign proportional ownership never reaches this statutory ceiling, but the restrictions should be borne in mind by prospective condominium purchasers nonetheless.

Some pose the question: "Can I use a Thai Company to circumvent the 49% foreign ownership quota?" In short: it may be possible, but it may be best not to do this as Thai law has strict provisions regarding "nominee shareholders" in Thailand and the obvious advantage of Condominium ownership: free hold title, might be mitigated by this type of scheme. From a practical standpoint, in virtually all cases involving a foreign national purchasing a Thai Condo the most advantageous position for the foreign national to be in is freehold ownership of the condominium as such ownership vests the most rights in the individual(s) concerned.

Those seeking investment opportunities in the Thai real estate market are well advised to have due diligence and research conducted with respect to all matters pertaining to Thai real estate and property law prior to making an irrevocable financial decision.

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