Buying a second home in Thailand

A building is under Thai law a separate immovableTo use all the legal options under Thai law, in case
property (separate from the land it stands on)of undeveloped land, the preferred structure is a
and the owner of the land is not necessarily therenewable 30-year land lease agreement
owner of the building. In most cases ownership ofcombined with a right of superficies (the right of
land and house lies with the same person. In casesuperficies registered on the title deed in addition
of  foreigner  buying real estate in Thailand theto the registered land lease). In this case the
land and buildings is usually separated, asbuilding permit must also be issued in the
foreigners can't own the land but they can ownforeigner’s name.
the house in their own name.The right of superficies is for many an unknown
The most common structure for foreigners toproperty right, but it's an important additional right
obtain ownership over the house is a land leasein any long term lease construction combined with
combined with a sale agreement for the house. Inownership over the house. In case of an existing
case of a housing development, instead of a landbuilding the registration of a right of superficies is
lease agreement combined with a sale agreementgenerally not accepted by the land offices in
for the house a land lease agreement and aThailand (in our opinion there is no legal objection
construction agreement can be offered (in thisfor registration of a superficies in case of an
case it is important that the building permit isexisting building).
issued in the foreigner’s name!). The effectThe Right of Superficies is a transferable and
for the purchaser is the same. For tax reasonsinheritable (real-) right interest in land giving for a
some developers chose a construction agreementspecified term the right to own a structure
above a sale agreement for the house.(building) in, on or above the land owned by
The other method is to lease the land and buildanother. The right of superficies may be created
the house yourself. In this case the building permiteither for a period of time (up to 30-years), or
must be issued in the foreigner’s name. Thefor life of the owner of the land or the
building permit is allowed as an ownershipsuperficiary (the person granted the right of
document for the house and in case of a futuresuperficies). If created for a period of time the
sale this must again be shown in the saleright of superficies may be renewed, similar to
procedure at the land office.lease.
Note; a house does not have any form of titleThe main benefit of a right of superficies lies in
document (condos  in Thailand have) but thethe fact it allows different clauses, and is a slightly
house is an immovable property and thereforestronger right than a lease. The agreement
the transfer must take place at the competentgranting the right of superficies is drafted in
authority (the Phuket land office). The official landcombination with a renewable land lease.
office sale agreement will be the ownershipIt must be noted that even though the building is
document which again must be submitted asowned by the foreigner his right to own his
proof of ownership whenever selling the house inbuilding upon land owned by someone else only
the future. Legal assistance is recommended by alast as long as his right to use the land last. Upon
legal professional experienced with the transfer ofexpiration of the lease and superficies the renewal
a building separate from the land. Try us! Themust be agreed. Both the land lease  agreement
transfer procedure takes approx 40 days toand superficies agreement anticipate on this
complete (including a 30 day announcement of thesituation.
sale of the house).