Purchasing | Landownership in Thailand
Foreigners cannot simply purchase land in Thailand. This may seem strange to Westerners, all the more because Thais can own land in most Western countries. What is permitted however is to lease land on a 'long term' basis, by making complete use of your rights. Why is this the case?
Thailand means 'Land of the Free'. A beautiful name for a country that has indeed always been free, whereby it can be pointed out that it is nearly the only country in Southeast Asia to have never been colonised. There have been wars with neighbouring countries, mostly with Myanmar, which included the occupation of some parts of present-day Thailand. During World War II, there was also a short occupation by the Japanese. But there was never the kind of dependence, such as in the case of the neighbouring countries to colonizers such as France, the Netherlands, England and Portugal.
Due to clever leadership, well thought through diplomacy and especially by offering plenty of trading possibilities and allowing the use of trading facilities and leasing, there was never a foreign power that considered making Thailand a colony. The Thais are extremely proud of this fact. This pride can be traced to century-old traditions, customs and...laws.
Although everything is anyway structured a little differently, it can still be simply stated that the old law that "all the land of Siam belongs to the King" is still applicable. You can still find laws that date back centuries among the present-day laws that regulate landownership.
The general rules that apply to the Thai people:
If a Thai citizen wishes to build on a piece of land that is not being used, he can place four posts around it or in some way section it off. He can then proceed to the local District Council in order to find out if that property is indeed available or not. If it is available, and if there are no plans or limitations that apply to that area, then the Thai can build on that plot. He will receive a document from the District Council called Sor Kor Nung (first document).
If he uses that plot for a period of ten years, he can return to the District Council and apply for a second document, which will give him the right of residence, besides the right to develop it. After a further ten years of using the land, at this point mostly with a house on it, the property developer can apply for a third land document called Nor Sor Saam at the District Council. This is the first document that gives the actual right of ownership. The property may then also be sold and it can be used as a means of security. With this document, a so-called 'Janot' is given. With this, the owner can divided the property into a maximum of nine sections, which in principle are meant to be for his children. This is in order to avoid large-scale land speculations and in order to protect Thai farmers. Different types of 'Janots' can be given. There are documents that give a lot of freedom and allow further subdivisions and within the zoning scheme, you can do as you please.
There are also 'Janots' that cannot be subdivided again, but which can be used freely. There are also 'Janots' that have limitations imposed on their uses.
The buying and selling between Thai parties is relatively simple. You go to the District Council where a registration takes place and the name of the new owner is noted on the back of the 'Janot'. A foreigner, however, can only own a property on his own name under certain conditions. Thailand does nevertheless offer good and reliable alternatives. By means of leasing ( a kind of ground lease) or by starting a Thai business, enough securities can be put in place in order to make the investment in a new living paradise a responsible decision. Because Thailand is indeed a paradise and living there is desirable. Thailand wishes to attract foreign investors and therefore offers enough protection to them.
Someone who wishes to build a house or wants to buy an existing house should at all times be convinced that the property documents are in order. This can best be done with the help of a reliable real-estate agent and of a lawyer from the District Council (land registry office).