There are many reasons to buy property in Pattaya: warm climate, tropical plants and animals, warm sea, attractions, affordable prices and developing economy - what else is needed for happiness? Some foreigners buy property in Thailand to have their own housing and the opportunity to relax comfortably at any time of the year, regardless of the season. Investors also buy real estate in Pattaya to make good money by reselling it or renting it out. The economy of the Kingdom and the real estate market are developing actively, every year housing prices are rising by an average of 3-12%. Renting out is also very lucrative business, especially during the tourist season. To purchase a property in Pattaya legally and become a full owner, it is worth considering some features of local legislation. In our article we will describe the rules for buying real estate and land in Thailand.
According to the Thai law, only a citizen of the Kingdom can become the owner of a plot of land or commercial property. However, there are several legal ways to circumvent these restrictions.
The first method is registration of a legal entity and buying a commercial real estate for it. According to the Thai law only 49% of shares may belong to a foreigner, but the controlling stake should belong to the Thai citizen. There is an option to negotiate with a Thai citizen, register a company with him and buy a real estate. Then your partner waives his property rights and you remain the only owner of the company and its property. A company registration may take up to 20 days. It is also worth considering the possible additional costs:
• 15-50 thousand THB for company registration;
• 1000-2000 THB monthly for the maintenance of the company;
The second option is a long-term lease of land. Foreign citizens can take the land in leasehold for 30 years, and then extend its term twice more, i.e. eventually rent for 90 years. In this case, the foreigner has the right to dispose of everything that is on the land (sell, lease, include in the inheritance, etc.). The leasehold agreement is concluded with the owner of the land and is registered with the Land Department.
The main document that confirms your ownership of the property is Chanot. This document is issued by the Land Department and contains all the information about the property: layout, characteristics, sales history, legal obligations of the owner (renting or bank pledge). After you purchase a property, your name will be indicated in Chanot.
In addition to the main certificate, a Confirmed Certificate of Use is issued, which establishes your right to receive a Chanot.
If all requirements for obtaining a Chanot are not complied, the buyer receives a Certificate of Use. After eliminating all inconsistencies, it can be re-registered in Chanot.
There is also a Certificate of Ownership, which confirms the right of the buyer to own a piece of land without the possibility of use.
Please note that all information and documentation are written in Thai, so you should make sure that all your data is entered correctly. To avoid mistakes and problems later, it is better to contact the professionals of the Real Estate Gallery, who will provide assistance at every stage of the transaction. You can book a free transfer to the Real Estate Gallery in order to get advice from a competent specialist and find out the answers to all your questions.
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