There are several way for a foreigner to buy Land. Chiang Mai Lanna House Realtors will work with you to determine which is best for you. We have many years of experience and have many Satisfied Customers currently living in Chiang Mai.
Foreigners can Own a House but cannot, currently, Own the Land that the House sits on. There are several techniques to work around this problem.
Land Title Deeds
Chiang Mai Lanna House only Recommends two type of Land Title Deeds: Chanott or Nor Sor Sam Kor. Read Land Title Deeds for more Information.
The most popular option is to Purchase the House and get a Land Lease for the Land. An Individual can get a Land Lease for 30 years with two prepaid 30-year renewals. The Lease should include clauses that automatically allow freehold ownership if the laws of Foreign Ownership change in the future, and the right to sell and / or transfer the property. The only major limitation is that you cannot Will the Property to someone if you Die. This gives you 90 years with strong backup, making it effectively ownership.
The law is complicated in that all the buildings on the land when it was purchased or improved or built by you after purchasing the land, are yours freehold. Technically this means that once the lease expires, the owner of the land must purchase the building(s) at an independently and legally valued price, or negotiate another lease period.
The structure of a lease agreement needs to be watertight. But because this has become the preferred way of holding land in Thailand for foreigners, this type of lease agreement has become more or less a template, with add-ons to suit individual buyer’s needs.
This is not something that you can do yourself. Let the Professionals at Chiang Mai Lanna House Realty put you in touch with an Experienced Real Estate Lawyer. Remember don’t sign anything, or hand over any money, until you fully understand and are happy with what’s written on the Lease Agreement.
If you are married with a Thai, then the simplest solution is to let him / her buy the House and Land.
For your partner to buy land, proof is required that the money used to purchase the land is legally the Thai partner’s, with no foreign claim to it. This is to remove any Claim the Foreigner might make if problems arise in the Relationship.
After the Purchase is completed and if you get divorced or separated, then your Thai “ex” keeps it all. Even if the Thai partner dies, the Foreigner has no claim to the Land. There is nothing to stop the relatives from moving in and kicking you out.
If you want a House to call your Own, without the prospect of your partner’s relatives becoming involved, think twice before you choose this option.
Company Owns Land
Even though foreigners cannot own land, legally formed Companies with Foreign Shareholders can. Company law is complicated but a Thai company cannot have more than 49% of its shares owned by foreigners If the company is going to own Property, then the amount that may be owned by a Foreigner reduces to 39%. If the company has been set up by a Competent Lawyer, you can still control the company even though you will own less than 50% of the shares.
The Thai authorities are working to close Companies which are created only for the purpose of acquiring property. Companies with foreign shareholders that try to register a Land Purchase is subject to a full investigation. The Thai Authorities want to make sure that the company is not set up just to enable a foreigner to buy land. Be very careful and make sure you get the help of a Qualified Lawyer.
If you have any questions, please contact your Chiang Mai Lanna House Real Estate Agent. He will direct you to a Qualified Real Estate Lawyer who can answer all your questions.