Thai Real Estate and Property: Legal Issues for Property Buyers in Thailand by Benjamin Hart

Thai Real Estate and Property: Legal Issues for Property Buyers in Thailand
by: Benjamin Hart

Thailand is one of the most exotic and beautiful locations in the world. For this reason, it is one of the top tourist destinations and continues to draw new arrivals each year. Many of those coming to Thailand eventually decide to remain in the country as expatriates. When seeking to relocate to any country, the issue of home ownership becomes a paramount concern. Hopefully this piece will shed light upon some of the many facets of Thai Property Law.

Obtaining Real Estate or Property in Thailand

In order to stay in Thailand for the long term many people opt to buy Thai Real Estate. Owning a home in Thailand can be a bit of a risky enterprise since Thailand has many laws that preclude foreign ownership of land. However, there are some ways in which a non-Thai can own or control Thai property.

Thailand Condos

Condos in Thailand are a popular choice for many expats. The Law of Thailand permits a foreign national ownership of a Condo in Thailand so long as it meets the definition of "condo" as set forth in the Condominium Act of Thailand.

Thai Real Estate Lease

A long term lease of Thai Real Estate is another attractive option to many prospective foreign Property owners in Thailand. However, there is some misunderstanding regarding Thai leases. Certain people are of the opinion that a lease in Thailand can be drafted to automatically renew and can be drafted for a longer duration than 30 years, however this belief is not based upon the actual law.

Thailand Usufruct

A usufruct of Thai property is another possibility. This instrument is similar to a life estate future interest as seen in some common law jurisdictions as a Thai usufruct entitles the holder to lifetime use of the land. There are many formalities that must be kept in mind when drafting a usufruct which is why it is advisable to have a lawyer prepare a usufruct.

Thai Company Formation for Property Ownership

Another method of "owning" property in Thailand is having a Thai company own the property and have a disproportionate number of voting shares allotted to the non-Thai property "owner," this method allows a non-Thai to keep control of the property while still adhering to Thai law.

For interesting insights regarding Thai Real Estate and Property Legal issues please see: http://hubpages.com/hub/Buying-Property-or-Real-Estate-in-Thailand

The legal system of Thailand is complex body of regulations and rules. As with any legal structure used to own real estate, it is wise and recommended that a competent lawyer draft all documents and conduct due diligence research in order to make sure ones interests are fully protected.

About The Author

Ben Hart is an American Lawyer. He currently lives in Bangkok where he is the Managing Director of Integrity Legal, a Law Office with a presence in the United States and Thailand. For more please see http://www.integrity-legal.com