The preferred method of acquiring land for building a home is by leasehold.
The foreigner safely acquires the right to use the land and registers the right
with a 30-year lease at the Land Department. A lease contract is carefully
drafted to guarantee the initial 30-year lease with two renewal periods of 30
years each. In Thailand , the maximum time period for a lease registration of
residential property is 30 years, hence, the need for two renewal periods in a
contract to provide for a 90-year lease.
The lease contract is drafted in the Thai language (some contracts contain
English language with the Thai) and is registered at the Land Department.
The lease contract is attached to the title deed and maintained at the Land
Department. The foreigner can construct a house on the land. The
construction permit is applied for in the name of the foreigner. The foreigner
will own the structure in his/her own name. The advantage of leasehold is a
lower registration fee (1.1 percent on the amount of the land lease). It is
recommended to include family members such as young adults as co-lessees
in the contract. In the uneventful demise of the parents, the children can
carry on the full term of the lease period.
Buildings can be owned
The buildings on the leased land can be owned freehold by the foreign buyer.
The foreigner can apply for the construction permit in his/her name or show
proof of a sales agreement. Transfer of a building requires a posting for 30
days by public notice to see if anyone contests this ownership. The lease
contract can be written stating the house is separate from the building and
it cannot be seized at the expiration of the lease contract.