Buying a Villa in Thailand
At the onset, let us glance through the concept of Thai villa. Villas are houses, however, different in class, located in a gated premise, and on an individual piece of land.
Foreign Ownership of an Immovable Property in Thailand
Foreigners are not allowed to own land in Thailand as per the Thai law. Nevertheless, they are allowed to lease land under a land lease agreement registered with the Land Department, and then construct a home of their own on the leased land. In order to increase the scope of their rights as the land lessees, it is necessary for foreigners to obtain the appropriate legal ownership of the structure. The land lease term is always associated with the ownership by possession or the rights associated with possessing and using the land. To establish this, foreign nationals must obtain either the Thai Script sale agreement or a building permit issued under the name of the foreigner. As per the Civil Code Section 456 under the Thai contract law, it is necessary to document the foreign ownership and get it registered by the local land office.
The Process of Transfer of Ownership
The transfer of ownership process involves the following steps.
- Announcing the sale that needs both the parties – the seller and the foreigner at the local land office.
- Issuing the notification form for sale. This involves a 30-day public notice by the local land office to check for ownership contestants, if any.
Completing the sale by the local land office.
What are the Documents Required to Execute the Transfer of Ownership?
The process requires the following documents.
- Passport
- Building permit or the sale agreement
- Tor-Dor 21 or the power of attorney form from the local land office, if applicable.
- Ta Bian Baan
When a Thai villa sales agreement is offered to the foreigner, the taxes and the transfer fee are charged as mentioned in the aforementioned process. Factors determining the rates for the property transfer fee and the taxes include the actual sale price, and the value of the house as determined by the government.
Buying a villa could be an intricate process, involving a lot of formalities, documentation, rules, and regulations, conditions, etc. To understand every element of the process, and to ensure that the purchase process is blissful, and doesn’t really cause any obstacles, get in touch with BLS – your trusted partner to help you to buy a villa in Thailand.