Purchasing Villa in Thailand

Purchasing Villa in Thailand

The process of Purchasing a villa (house) in Thailand may consist of several transactions. Since houses are considered as a structure based upon the land, and property law dictates that foreigners are not permitted to own land, generally a lease of the land is provided for buyers to enter into and this is where you'll need Juslaws & Consult.Purchasing a villa in Thailand can be transferred separately from the Land where it is built since in Thailand the Land and the Villa can have different owners at the same time through a lease agreement (long-term). The transfer of ownership of the Villa must be registered with the Land Department or Provincial Office where the land and villa are situated, you may relate such transfer as the right of usufruct under sections 1417 - 1428 of the Civil and Commercial Code of Thailand.

Advantages Of Buying A Villa

Villas are usually specified as exclusive homes that are titled as "private" located within specific boundaries designed by the developer inside a gated complex. There are many villas located in these specific areas that usually have a general common theme. Buying a villa is very appealing as this offers truly exclusive homeownership within a gated complex and some even offer excellent facilities within the area. It is to be noted that developers who obtain their license to build these villas must dedicate themselves to building within these specific boundaries.There are many advantages that are offered to general homeowners within the gated complex of villas such as facilities. Since this home is not located on its own, it generally has property management in that a specific company is dedicated to serving the homeowners’ facilities and maintenance such as gardening, electricity, water, and even garbage disposal. These services are usually paid for as maintenance fees on a monthly basis creating less hassle for the homeowner as an individual. With a property manager in place, they may also provide homeowners living in the community of the gated complex, with general bylaws to abide by. These are not uncommon and are beneficial to all homeowners.

Process To Purchase A Villa in Thailand

The process to purchase a villa in Thailand may get a little complex and may consist of several transactions. Thailand's property law states that houses are considered as a structure based upon the land, since foreigners are not permitted to own land, generally, a lease of the land is provided for buyers to enter into. This will consist of the maximum period of 30 years which would then, once entered into, be registered at the relevant land department located in the area. A separate sales and purchase agreement will also be in place for the purchase of the villa as a separate structure. This will then be attached to the land title deed located at the land department. However, depending upon which area you are purchasing in, this may not always be the case.
The other transaction that may be entered into is a lease contract entered into for the maximum period of 30 years for the lease of the land from the developer, and subsequently, the individual building permit of the villa itself will be transferred to the buyer by the developer. This involves the holder of the permit providing a statutory notice at the land department 30-day notice issued by the Land Office to transfer the house in which the developer or seller has to produce to the land office the construction or building permit, the Tor Ror 900, and the House Registration booklet to the land office. Once the 30 day period has expired, the house then transfers to the buyer and the lease is registered at this time.

Summary

Regardless of whether you choose to buy a villa or any other type of property it is suggested that you contact a lawyer or solicitor in order to ensure the correct purchase procedure. It is a must for Juslaws & Consult that you make any transaction following the correct procedure since it is a great inconvenience and headache when you face a problem related to properties in Thailand as a foreigner.

If you want more information on buying land in Thailand, buying a condominium in Thailand, or on real estate due diligence please do not hesitate to contact Juslaws & Consult at our Bangkok or Phuket office to learn more.