Who does not dream about possessing a holiday home or to retirement home on a tropical island where you have a good infrastructure and can enjoy the sun? Koh Samui has it all.If you regard the following legal aspects there is nothing in the way to lead an easy going life on Koh Samui.
Foreigners may own a house in Thailand but may not own land in their name.
Therefore the land has to be registered in the name of a Thai company, or must be leased for 30 years (with an option to extend this period for another 30 years). Both can be arranged for a reasonable fee by a reliable company with which we cooperate since several years. You have the right to sell or sublease the property again.
From our personal experience we strongly advise you to pay attention to the following:
- Make sure to have the legal position concerning possession checked by an independent lawyer. (Again we can assist you)
- Sale or lease must be registered at the land office in your, or your company’s name.
- An eventually existing easement also has to be registered at the land office.
Make sure to have the land title in your personal possession.
- Make sure to have a correct construction permit. Make sure it is shown to you and get a copy.
- Every house must have a blue „house book“. This is an important document and should not only have your name on it, but also be in your personal possession.
If you do not want to use the company we recommend, we would further suggest to please engage a reputable independent lawyer to do due diligence on any contract and trading partner before signing an agreement. Key questions should be for example; is the person themselves honourable? If they are claiming to be a director are they really a director? Is there really a company registered in the name of the entity making you the offer? Do they pay proper tax and comply with other legal requirements? Above all; make sure to get translations of all important documents such as lease registrations, land titles and court orders. Don’t renounce your rights
Land Title Deeds:
Astute investors should always be aware of the varying land title deeds that exist within Thailand.
CHANOTE or Nor Sor 4 Jor is the best type of land title for foreign investors. Land with a Chanote title have been accurately GPS surveyed and are linked to the national survey grid.. They are also staked out by unique numbered posts set in the ground. Chanote titles are the most sought after. The transfer of the land title can be transferred within a matter of hours.
Nor Sor 3 Kor land titles are still legal documents of Rights of Ownership and are measured relatively accurately, but less accurately than the Chanote title. Transfer of ownership can take slightly longer.
Nor Sor 3 titles are the predecessor to Nor Sor 3 Kor title and the land survey is only recorded in relation to neighboring plots. Survey errors of up to 20% are not unusual. Horizon Homes always recommend a thorough re-survey of the land before purchasing land under a Nor Sor 3 title.
There are many other forms of land title less recognized than Nor Sor 3 but these are basically a form of squatters’ rights. You cannot obtain approval to build property in Thailand on land with these titles, and therefore they are not recommended.
Measures in Thailand:
Land in Thailand is measured in Rai, Ngan and Taling Wah
1 Wah =4 sqm
1 Ngan=100 Wah or 400 sqm
4 Ngan = 1 Rai or 1600 sqm
2.5 Rai=1 Acre