Thai Laws

Looking closer at the Condominium Act in Thailand reveals many aspects of Thai property law that has been generally overlooked by estate agents and buyers. There are a number of rules which you need to look at before signing any documents. This is one of the reasons why it is important to hire a reputable and competent law firm before you sign the purchase documents. 

Thai law prohibits foreigners from owning land (See: Thailand buying land) hence the many high end condominiums which are built each year to accommodate the demand for condominiums by foreigners. Foreigners are by law prohibited from owning more than 49% of the condominiums in the development so this creates a problem for developers as to how to develop a high end condominium block. What has happened on many projects is that say the top floors are large 300 plus square meter condominiums at 20 million baht each while the lower floors are much smaller 30 square meter condominiums at a more affordable price, one which Thais' would be able to afford. In this way the developer stays within the rules that foreigners may not own more than 49% of the floor space on the condominium block.

Thailand Property Checklist

1

You have to ensure that the ownership of the condominium block is not more than 49% foreign owned. Hence foreigners collectively may not own more than 49% of the floor space of development.This is covered by Section 4(19) where it clearly states :

"aliens or juristic persons stated in Section 19 may have ownership in a condominium unit, when added together, must not exceed forty nine percent of the total space of all units in that condominium"

3.

The money remitted to purchase the condominium may come from certain designated sources, however there has to be proof that the money was remitted to Thailand in the FULL AMOUNT. Therefore you may not as an example remit half the money from overseas and the other half from a local Thai account, This is enforced under Section Sectio 5(5) as it states that:

"Aliens and juristic persons under Section 19 (5) shall present the evidence of bringing foreign exchange into the Kingdom or the evidence of withdrawing money from the non-resident Baht account or withdrawing from the foreign currency deposit account to the amount not less than the price of the condominium units intended to buy"

4.

Changing of nationality are important in terms of the Condominium Act, This however is more a question raised by Thais' if they should lose their nationality.A hypothetical example is your wife buys a condominium as a Thai and later renounces her Thai citizenship. She would have to notify the Department of Land within 180 days of losing her Thai nationality that she is now classed as a foreigner. If she owns more than the allotted units allowed by a foreigner she has 1 year to dispose of the excess property from the date of losing her Thai nationality.  This is covered further under Section  8

Siam Legal International has offices in all major tourist destinations in Thailand. Speak to us before you purchase any real estate in Thailand to provide you with proper legal guidance and property options available to you.