+66 (0) 32 532 904
+66 (0) 32 532 904
: [email protected]
- - LEGAL - -
Q What types of ownership are available ?

The various types of ownership available depend upon the type of property purchased and is set out in more detail below :

  • Land plots may be owned on leasehold of freehold basis. Under Thai law, foreigners may own buildings developed upon the land leased by them, but not the land itself. We offer a 90-year lease for non-Thais, being three terms of consecutive 30-year leases (30-years being the maximum lease term that may be permitted under current Thai law). Alternatively, freehold ownership of the land is available for Thai nationals or Thai registered companies.
Q What are the costs associated with the lease/freehold registration ?

These are outlined below:

Leasehold title
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.

Freehold title
Freehold registration fees (currently 2.0% of the appraisal price of property) is payable to the Land Department upon transfer and registration of title of the property. The appraisal price is calculated relative to the government’s tax assessment value which is generally well below market value. Other applicable taxes upon transfer and registration of freehold title are :

• Corporate Income Tax (Currently 1.0% of the selling price or appraisal price, whichever is higher)
• Specific Business Tax (Currently 3.3% of the selling price or appraisal price, whichever is higher)

The burden for the above costs will be specified in the Lease and/or Sale & Purchase Agreements.

Q Is leasehold land transferable ?

Leasehold land may be transferred subject to the terms and conditions of the agreements. Generally, an assignment fee is payable. In addition, the assignee must agree to be bound by the terms and conditions contained in the original lease agreement.

Q Can leasehold be upgraded to freehold title ?

This depends upon particular circumstances and is set out in more detail below:

We provide in our standard lease agreements an option clause to purchase the land as freehold title during the lease term provided that the Lessee is eligible under Thai Law. An option fee is also payable (generally 1% of the lease premium) upon upgrading of the title.

Q Is leasehold land ownership secure ?

The land titles need to be free from mortgage and any encumbrances and this is the preferred method of ownership for foreign buyers. Once the lease is registered at the Land Department, the right of use to the land will be vested with the lessee.

Q Should I appoint a lawyer to review the agreements ?

Our agreements have been used for a number of years and have been reviewed by major international law firms. We have our own in-house legal team which will assist to clarify any questions you may have concerning the agreements. However, should you wish to obtain specific advice re the structuring of your investment, we recommend you consult with a professional legal and/or financial adviser.

Q How long does construction take ?

All construction works are subject to receiving the appropriate Government approvals. Generally, it will take approximately 12 months to complete the building and landscaping.

Q What is the warranty period offered ?

This depends upon the particular product offered and is set out in more detail below :

For all new construction projects, generally, you have 5 year warranty on main structural parts of the building, piles, footing, slab, roof structure and load bearing walls which is accordance with Government regulations. A one year warranty id offered on component parts or accessories which are major parts of the building.

Q Is customization of the building allowed ?

All of our residential properties have been professionally designed by leading architects and engineers and construction must be in accordance with building permits issued by the Government authorities. However, we will consider minor modifications which do not breach the construction permit and do not impact the building structure such as internal partitions, built-in furniture, wall and floor tiles, etc. and do not affect the overall aesthetics of a development.

Q Is there a rental program available and what are the potential returns ?

Yes, various rental programs are available. The terms and conditions of rental programs and the returns may differ depending upon the type of property.

Q What types of property management services are offered and what is the approximate cost ?

In addition to common area property management, optional property management services are available to individual owners. For properties in a rental program, these services such as housekeeping, pool cleaning, gardening, routine and preventative maintenance, general repairs and pest control will normally be provided as part of the rental program. However, these services are also available to non-rental program properties.