Buying Property
Buying property in Hua Hin can be a dream come true, but it’s important to understand the risks before making a decision. Take the time to become well informed and fully understand your ownership options. With the right knowledge and careful planning, you can make a confident investment or securely plan for your retirement
Armed with the knowledge that foreigners are not allowed to own land by law in Thailand and official documentation is provided in Thai language. Miscommunication and misunderstanding could lead to possible financial loss.
What are the options for you, if you who wish to live or invest in Thailand?
Protecting Your Investment: Leasehold
When purchasing a villa or property under Thai property law, registering a structural leasehold is one of the most reliable and legally sound pathways for foreign investors. While Thailand restricts foreign ownership of land outright, a properly structured lease provides excellent long-term security. Legal Services Hua Hin ensures your interests are fully protected by drafting custom, ironclad agreements and managing the official registration process directly at the local Land Registry Office.
Sometimes a housing developer’s standard contract is typically written to protect the project, not the buyer. We closely audit and adjust every lease agreement to guarantee several critical provisions are explicitly included for your security:
Unrestricted Right to Sell and Transfer Your Property
You maintain the absolute right to sell your leasehold interest in your property at any time. If you decide to sell the lease to a third party of your choosing:
- The landlord must grant unconditional advance consent to the transfer without imposing new conditions or restrictions.
- You are fully entitled to receive 100% of the sale proceeds directly from your buyer or transferee.
- The landlord must actively cooperate to register a brand-new, full 30-year lease for your incoming buyer at the local land office.
- If your buyer is a Thai national who qualifies to own the land freehold, the landlord must agree to transfer the underlying land title to them without objection.
Note: The transaction will incur standard Land Department expenses, including lease cancellation fees, new registration fees, transfer fees, stamp duty, and applicable taxes. These closing costs are typically shared equitably between you and your buyer.
Full Freedom to Let and Sublet
Your lease agreement must grant you absolute rights to let or sublease both the land and your villa to third parties. We eliminate developer-imposed restrictions or conditional approval clauses, allowing you to freely rent out your property and maximize your investment.
Guaranteed Inheritance and Succession for Foreign Buyers
Under Section 540 of the Thai Civil and Commercial Code, a lease is legally classified as a personal contractual right, meaning it automatically terminates upon the passing of the lessee. To protect your family and secure your asset, we implement specialized reciprocal succession clauses. This ensures that the lease does not terminate upon your demise, but is legally bequeathed to your heirs or the beneficiaries named in your Last Will, binding both the developer’s estate and your own for the remaining term.
Legal Services Hua Hin ensures that your leasehold contract is water-tight, custom-tailored to protect your financial interests, and officially registered at the government land office for your absolute peace of mind.
Securing Freehold Villa Ownership
If your spouse is a Thai national, the land can be bought in their names and you could register a Usufruct on the land for perpetuity, giving you legal rights to occupy, utilize, live in and receive benefits from the land. However, Usufruct must be registered properly at the land registry office and your name shall be endorsed on the land title deed to secure the legal rights.
You can own a villa any structure built or located on the land. The ownership of villa and structure can be transferred to you as freehold at the land registry office.
We provide comprehensive legal counseling to ensure both your marriage and your property investments are structured symmetrically, transparently, and in total compliance with the Land Department’s strict regulations.
Outright Foreign Freehold: Buying a Condominium
Purchasing a condominium unit in Thailand is widely considered the most straightforward real estate pathway for overseas buyers. Under the regulations of the Thai Condominium Act, foreigners are granted the right to own a condominium unit outright as an absolute personal freehold title. However, securing a trouble-free transaction requires legal due diligence before signing any reservation agreement.
Navigating the 49% Foreign Freehold Quota
While outright ownership is fully legal, Thai property law enforces a strict architectural ratio for every residential project.
However, one block of condominium building allocates 49% freehold ownership to foreigners while 51% units must be owned by Thai nationals or companies. Accordingly, it’s important to conduct due diligence to verify the availability of quota for foreign ownership. In addition, sinking fund and annual common fees collection and by-laws and regulations should be studied carefully.
Estate Agents
There are numbers of estate agents providing property search and management services in popular areas. Some estate agents are reputable and well-established companies. Some estate agents work exclusively with certain housing developments. Some estate agents are individuals. The good ones are supposed to provide before-during and after-sale services and support without hidden fees and hassles. However, Legal Services Hua Hin works independently but efficiently with estate agents whom you chose a property from.
Due Diligence
When you have found a property that you feel is right for you, before signing any reservation agreement or paying a non-refundable deposit, it’s critically recommended to conduct the title search at the land registry office to ensure that the seller is a legitimate owner of the property and legal ownership of the property is clear of encumbrances, obligations, lien, mortgage and liabilities registered against the property and the ownership documentation is accurate and complete. Legal Services Hua Hin provide the comprehensive examination to ensure the first step is secure.
Contracts Preparation and Review
Usually, housing developments apply their own standard contracts and they are intensive. Legal jargons may not be easy to understand. we can assist you with contracts review and provide you with our feedback and legal advice to ensure your full understanding. We liaise with the developers to amend the contracts to the best of your interest. Moreover, leasehold contract has to be registered properly at the land registry office to validate the lease term.
Sale and purchase contracts may not be available for individual properties. We prepare contracts to reflect the agreement between both parties and all terms and conditions are clearly outlined and ensure your investment is protected.
Making payments for the property
It’s common to pay for construction of property directly to the developer following a reasonable and stages payment plan. You may wire the payments from your overseas account if you don’t have a Thai bank account. It’s advisable to make the final payment only when the property ownership is transferred to you at the land registry office and the villa is handed over to you.
However, if your villa is a resale, two payments are commonly required. A deposit payment when entering a reservation agreement or a sale and purchase agreement and the balance upon the completion or closing of the transaction. Ensure that you make the final payment only when the property ownership is transferred to you at the land registry office and the villa is handed over to you. It’s not simple to handle these transactions if you don’t have a Thai bank account and the funds in Thailand. You may engage our trust account services to secure the transaction by exchanging the property ownership in your name with the final payment made to the seller.
Property inspection
Structural warranty by law is 5 years whereas snagging is 1 year for newly built properties. However, there is no warranty for resale property. It’s important to hire a qualified inspector to check and inspect the property for you before the purchase in case of resale to ensure no hidden damages and unexpected repairs.
In case of off-plan purchase, especially when you are overseas, an inspector can check the construction to ensure it complies with the floor plans and specifications and monitor the construction progress on your behalf to ensure the compliance with the agreement, payment request and on-time completion.
Property ownership transfer and registration at land registry offices
Whether you are in Thailand or overseas, we can represent you with the transfer of property ownership and registration of title in your name at the land registry office. These can be done by a power of attorney. We use a specific power of attorney for property transaction; written in Thai and English languages to ensure you understand what you sign for. We provide certified English translation for all official title registration documents issued by the land registry office to ensure your full understanding.
Right of Servitude
Private housing developments usually own internal roads within the housing estate. Usually, they don’t provide official registration of right of servitude for your property. However, they should provide unrestricted road access to your property without conditions. However, the grant of access may be subject to payments for common fees and other conditions. Therefore, it’s important to review the maintenance agreement to gain full comprehension about rules and regulations, payment obligations and right of servitude.
Government regulated housing developments are obligated to provide unrestricted and unconditional road access to your property and internal roads are owned by Juristic Person who is elected by the community. Therefore, there are no restrictions and conditions to use the internal roads, however, you must comply with the by-laws of the community.
It’s paramount to ensure that your property secures access to a public road.
Utilities
It’s important to verify if electric meter and water meter are installed to the property under your name so you pay utility bills directly to the government suppliers (Provincial Electric Authority and Local Water Authority). Some developments own these utility meters and supply utilities to your property at their own rates which are more expensive than official rates due to mark-up.
Property transfer fees and taxes and Annual Property Tax
All property transactions are subject to government fees, taxes and stamp duty. Usually, these costs are borne equally between sellers and buyers. The rates applied vary by ownership structure and length of ownership (leasehold, freehold, condominium). It’s advisable to understand these costs in order to plan your total budget. After you own a property, you are obliged to pay annual property tax. You shall receive an invoice from the local tax authority annually and the payment is simply via QR Code scan or bank transfer. Property taxes differ by locations, type of property, description of property, age of property, commercially or individually owned property, purposes of use of property.