Real Estate Information Guide

Any information on this website has been stated as at the time of publication. Please be aware that any law, legislation or procedure may change without notice in accordance with the laws and governance of the Kingdom of Thailand. Legal and land ownership issues in Thailand can often be confusing and misunderstood, CCR Property always recommends consulting a 3rd party legal advisor for up to date advice on property laws in Thailand.

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Alien Business Law - The Alien Business Law, also known as National Executive Council Decree 281, was the predecessor to the Foreign Business Act 1999.

B

Board of Investment (BOI) incentives - Under the Investment Act, the Board of Investment (BOI) has the power to grant Foreign Owned companies permission to own land for the purpose of conducting an authorised activity. The size of the land is determined by the BOI which reviews the core function of the business and the construction plans for the intended premises. Predominately this exception in the Land Ownership Law is applied to the manufacturing industry.  The BOI also has the power to make exceptions to the Alien Business Laws restrictions on Foreign owned companies.

C

CCR Property - An independent Real Estate Broker dealing with residential and commercial property in Pattaya.

Chanote - in Thailand the equivalent to a land Title Deed is called a Chanote. The named owner of the land should be in possession of a Chanote and the district Land Office will also have a duplicate copy.

Condominium Act - The Condominium Act, B.E. 2522 (1979)/amendments 2, 3 and 4, allowed a Foreign National to legally own a unit within a condominium. A total of 49% of a condominium building may be allocated under this act. This may even be increased in certain areas such as Bangkok and Pattaya (as defined by the local land offices). In 2008, an amendment (No. 4) was made to the Condominium Act that made Property Developers responsible for accurately marketing their product and also required them to be responsible for taxes, maintenance fees and charges for any un-sold units in the building. The amendment also included various other regulations that were intended to protect the interests of property owners within a condominium.

D

Developments (Property) - The term “Development” or “Property Development” refers to a construction project of housing or condominiums.  Pattaya has over 100 developments from gated communities to high rise condominiums.

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Escrow Business Law - The Escrow Business Law (2007-2008) is intended to protect buyers and seller from fraudulent activities by enlisting the services of a third party to delegate funds, documents and property according to prearranged conditions.  Although an Escrow Account is not mandatory, some Property Developers have enlisted an Escrow Service Provider to offer their customers the opportunity to open an Escrow Account.

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Foreign Business Act - Amongst other points the Foreign Business Act, B.E. 2542 (1999), placed limitations on Foreign ownership within certain industries in Thailand. The Foreign Business Act also prohibited a Foreigner from being the majority shareholder of a company involving the purchase of land/property.  However, the law did not forbid Foreigners from being the majority shareholder on the board of directors or from the differentiation of shares and categorizing the voting rights of shareholders.

Foreign Ownership - The term "Foreign Ownership" is commonly used to refer to the entitlements within the Condominium Act, regarding property ownership by a Foreign National. Under the Condominium Act a Foreigner may be legally entitled to own a condominium unit that forms part of the 49% of foreign entitlement within a building.

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Mortgages in Thailand - In general, it is uncommon for Foreigners to be granted a mortgage in Thailand. Despite this, some banks have been more cooperative with offering finance to non-Thai nationals over recent years. The terms and conditions of finance may vary considerably from bank to bank and many factors are usually taken into account, such as: length of time a work permit has been held, years of service with current employer, annual salary, marital status, applicant’s age and the type of property that is being purchased.

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National Association of Estate Agents - The National Association of Estate Agents (NAEA) is the UK's leading professional body for estate agency. Its 10,000 members both in the UK and overseas are bound by strict rules of conduct to ensure they offer you the highest level of integrity and service, while the Association's entry qualification means you can be sure you are dealing with an expert. By choosing an NAEA member you can feel secure in the knowledge that you and your property are in safe hands.

Ngan - Land measurement used in Thailand. 1 Ngan = 400 m2

Nor Sor Sam & Nor Sor Sam Gor - These type of documents are basically a variant of the primary Chanote (Title Deed).  Nor Sor Sam are registered with the Land Office and are proof that the land in question has been utilized by the possessor and therefore grants the right to use the land. These titles can be sold, leased or transferred however the may be ambiguous when actual ownership is put into question. Public notice must be given before a Nor Sor Sam can be registered with the Land Office. A Nor Sor Sam Gor is and updated version and is generally considered to be more accurate than the previous document. This document is usually supported by information from the National Survey, aerial photography or designated Quantity Surveyor. The Nor Sor Sam Gor does not require notice to be given and may allow subdivision and resale of the inherent plots of land.

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Offshore Financing - One method of finance available to foreigners in Thailand is the offshore finance facility offered by some banks, such as the Bangkok Bank in Singapore. This method can produce up to 70% of the properties value and is usually made available to people that have previously been declined for a local loan in Thailand. Although previously most financiers offering these types of loan were few and presented rather unattractive terms, there is now a lot more banks and financial institutions getting involved with the offshore loan industry.

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Property Developer - A person or company involved with the construction of building projects and land accusations. Thailand is home to countless Property Developers and Pattaya has one of the most concentrated industries in Asia. Recently, new legislation has been brought in to force Property Developers to be more responsible when marketing property and to be more accountable for the maintenance of a finished project. Many Property Developers have a portfolio of their previous projects and local Real Estate agents can also provide more background information on a specific company or project.

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Rai - Land measurement used in Thailand. 1 Rai = 1600 m2

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Security - Most property developments in Pattaya have some form of security in place.  Housing developments usually have a 24 hour manned gate and may also have night watchmen or security patrols. Some developments may have 12 hour security, only on duty during the dark hours. Condominiums normally have some kind of reception and limited access system. CCTV is also common in modern buildings. There are also private security companies in Pattaya who offer intruder alarm systems and 24 hour incident reaction services.

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Tor Tor Sam (TT3) - A Tor Tor 3 is issued by a bank upon receiving foreign currency from overseas. It is a requirement for certain procedures when a foreign national is purchasing a condominium under the Foreign Ownership entitlement.  The form can be requested from a bank however the purpose of the transfer must be “condominium purchase”.  A TT3 can also be used when transferring money out of Thailand.

Title Deed - See Chanote

Thai Real Estate Business School - The Thai Real Estate Business School (TREBS) is a specialized school devoted to the multidisciplinary study of real estate management, valuation, surveying, and property development. TREBS has its primary objective to enhance the development of efficient management personnel skilled in property valuation and related subjects in the area of real estate in Thailand. TREBS has conducted a number of training courses and seminars such as the well-known four-day training course on property valuation. Factors enabling TREBS to success in conducting these training courses and seminars are the valuation knowledge learn the formal training delivered by the Lincoln Institute of Land Policy and our rich experience from valuation and research in the field over the last 10 years. Since then, to 67 sessions were held with over 2,000 participants. The programs are academically rigorous and intensive, designed for practitioners and well-motivated students.

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Wah - Land measurement used in Thailand. 1 Talang Wah (Square Wah) = 4 m2

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