Thailand Land Owning Laws
In the beginning, i.e. the Sukhothai era, most of the land in Thailand was in the possession of the people, who reserved the right to individually use said land and to transfer it to their heirs. Later, in the Ayutthaya and Ratanakosin era, the land was owned by the kings. The people had to request a royal grant in order to obtain land. At present, the possession of land has to be in accordance with the principle land administration laws. There is the supervising Land Department and some land is still controlled by other governmental authorities, such as the Forestry Department, which is responsible for the management of land in forest zones, [Sor Por Gor] is responsible for land in reformed land zones, District Offices and Municipalities [Or Bor Tor] look after public land zones. All land under the control of these government departments have no effect as to the rights of people who owned land before the government appointed the land as a forest, public or reformed zone. The law has no retrospective effect on the individual's rights to land under the law before it became a forest zone. That individual person still maintains its rights to the land.
What are the main types of land titles?
The land title deed is a Chanote (Nor Sor 4 Jor). The Nor Sor 3 Gor and Nor Sor 3, are equivalent to a land title deed for all practical purposes as the land can be sold, leased or mortgaged. However, the boundaries are less accurately surveyed compared to land with a Chanote. There are a number of other land titles though these do not afford the owner many rights to the land under Thai law.
What is the title and status of the land in Kata Ocean View Condominium?
The land title deed is a Chanote (Nor Sor 4 Jor) and is owned by Oceanic Global Living Co., Ltd., a Thai registered company. The Nor Sor 3 Gor and Nor Sor 3 are equivalent to a land title deed for all practical purposes as the land can be sold, leased or mortgaged. However, the boundaries are less accurately surveyed compared to land with a Chanote. There are a number of other land titles though these do not afford the owner many rights to the land under Thai law.
What is the Lease Term in Kata Ocean View Condominium?
The term of Kata Ocean View Residence is 30 years commencing on the hand over of the complete unit to the purchaser and expiring 30 years after. Upon expiry date of this agreement the purchaser and assignees can extend the lease for a further 30 years at the land department. The purchaser can then extend the lease again for an additional 30 years. The total lease period including all renewals is 90 years.
Purchasing Land
Are foreigners allowed to own land?
According to Thai law, foreigners are prohibited from purchasing freehold land and not more than 49% of the shares in a Thai limited company that owns freehold land under the company's name. However, foreigners may own a building distinct from its land, such as a unit in a condominium.
How can foreigners own land in Thailand?
The safest and easiest methods for circumventing the law prohibiting foreigners to own land include using a leasehold agreement or setting up a Thai limited liability company.
What are the advantages of setting up a Thai company to buy land?
Unlike land leasing, the ownership of such land is permanent as long as the company exists. Using this method is also convenient if you were already planning to set up a business in Thailand. This method is also suitable if you wish to purchase land as part of an investment as it is possible to mortgage or subdivide the land for resale, which is not normally possible with a leasehold.
What are the disadvantages of setting up a Thai company to buy land?
Unless you are an American, as a foreigner you cannot own more than 49% of the shares in the company. This means that you need Thai shareholders who will sign over control of their shares to you. The minimum number of shareholders is 7, so you can have 1 foreigner and 6 Thai shareholders. However, even though you control these shares, proper legal procedures need to be put in place in order to protect your investment.
You also need to make sure that the regulatory compliance of the company is maintained. Inactive companies that are not generating income may be de-listed, so you need to make sure that balance sheets are filed annually and that the company's address is maintained.
Do you have to register the land lease at the Land Department?
Leases up to 3 years don't need to be registered. Leases that are 3 years or longer must be registered at the Land Department.
What is the maximum lease term available?
The maximum lease term is normally 30 years with an option for an extension of 30 years and a further 30 years after that. Each lease renewal must be registered at the local land office. Land for industrial purposes may be leased for up to 50 years by a foreign company under certain circumstances with a possible lease extension of a further 50 years.
Legal
What types of ownership is available?
Kata Ocean View Condominium, as 23 apartments complex are a part of the exclusive Oceanic Global Living Co., Ltd. project, land is offered on an ownership basis by assigning to all apartments buyers the shares of Oceanic Global Living Co., Ltd. The amount of shares is grant accordingly to the amount of square meters purchased and the apartments are assigned by leasehold 30+30+30 years basis.
What are the costs associated with the leasehold registration?
Leasehold title is lease registration fees and stamp duty (currently 1.1% of the land rental or lease premium) is payable to the Land department upon registration of the lease.
Construction
How long does construction take?
The Kata Ocean View Condominium complex construction already started, you can monitor the building progression visiting the "site update" section of our website or clicking HERE. The project will completed by February 2009.
What is the warranty period offered?
A one year warranty is offered on the building after keys handover.
Rental Options
Is there a rental program available and what are the potential returns?
Yes, rental programs are available. The terms and conditions of rental programs and the returns may differ depending upon the owner timeframe utilization of the apartment. The return investment at Kata Ocean View Condominium is expected to be 5-10 % a year according our marketing projections, nevertheless to management and space availability grant by the Owners.
Property management
What types of property management services are offered?
In addition to common area property management, optional property management services are available to individual owners. For apartment rental program, these services such as housekeeping, car rent, tour services, routine and preventative maintenance, general repairs and extra pest control services will normally be provided as part of the rental program.
Privileges
What privileges will I receive as an owner of Kata Ocean View Condominium?
As an owner of a property, you may be entitled to a regular membership and discount card for many restaurant, shops, fitness, spa and tours.
How is land measured in Thailand?
Metric units are generally used in the construction and measurement of buildings, but land is usually measured in Wah or Rai.
Land Measurements:
Land is measured in Rai, Ngan and Wah.
1 Rai = 4 Ngan (or 1600 Sqm.)
1 Ngan = 100 Wah (or 400 Sqm.)
1 Wah = 4 Sqm.
1 Acre = 2.5 Rai (approx.)
1 Hectare = 6.25 Rai (approx.)
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