Strict Thailand Property Laws
posted on 24 June 2011 | posted in
Holiday and Travel
For those who have tried to invest in Thailand property, they have come to understand that Thailand has strict laws concerning its property. These strict Thailand laws regulate mainly the acquisition, transfer, and ownership of properties in this country either by citizens or foreigners. First, Thailand property laws placed a de facto that prohibits foreign nationals from owning Thailand land. This has since barred foreign nationals from acquiring Thailand lands thereby limiting their investment in Thailand real estate.
Though it is a rare circumstance, it may be technically possible for a foreign national to acquire Thailand property through freehold title. The law however does not completely hinder foreign nationals from buying Thailand property as it may sound now. There are quite a number of Thailand properties that foreign national s are allowed to acquire but only in freehold. Thailand laws identify freehold title as Chanote title. The Thailand laws allow foreign nationals who have acquired Thai condos to hold the Chanote of their real estate.
For Americans, the bilateral “US-Thai Treaty of Amity” between US and Thailand allow American citizens to own virtually 100 per cent of limited companies in Thailand. However, they are not allowed to own Thailand property in form of land. These restrictions in Thailand property have since made doing business, transferring title to property, and owning property in Thailand very cumbersome to undertake. For these reasons, it has become prudent for real estate developers or business people in Thailand to operate through Thais and Americans. However, the Thailand property still boom due to the new developments that are coming up daily.
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