5 Reasons You Should Always Use a Lawyer When Buying Property in Thailand

Why hire a local lawyer when you're in the process of buying real estate in Thailand? Because their expertise is invaluable in navigating the intricate landscape of Thai property laws, especially for foreigners. A Thai real estate lawyer's legal assistance will prove indispensable when scrutinizing contracts to protect your interests, overseeing construction to ensure adherence to local building codes, and facilitating payments to safeguard your funds according to Thai financial regulations. In the complex world of Thai property investment, a local lawyer is your best ally.

Many potential buyers are tempted to cut costs where possible, but skimping on a quality lawyer is a mistake you can't afford to make. When it comes to navigating Thailand's regulations around buying property as a foreign national, having the right legal professional in your corner is non-negotiable. Here's why:

1. Freehold Issues

Thailand imposes strict regulations around the types and locations of property that foreigners are permitted to buy on a freehold basis. The majority of freehold land is off-limits, with the notable exception of freehold condominiums. However, even for these condo units, there is a quota allocated specifically for foreign buyers, typically around 49% within each development. Once that foreign ownership quota is reached, it becomes nearly impossible to secure a freehold condo unit.

Not everyone wants a condo – in fact, most buyers are really after their own villa. A good real estate lawyer will be able to help you structure the contract and purchase so that you'll be able to buy property in Thailand you want.

2. Leasehold Arrangements

For foreigners facing limitations on freehold property ownership, leasehold agreements offer an alternative path to buy property in Thailand. Thai laws allow foreign nationals to secure three consecutive 30-year leasehold contracts, with all payments bundled into the overall purchasing price.

However, navigating the intricate world of leasehold arrangements requires a deep understanding of Thailand's leasing laws and linguistic nuances. Unless you possess such specialized expertise, enlisting legal assistance from a real estate lawyer well-versed in both Thai regulations and foreign property rights is essential. As a foreign buyer, it is important that your leasehold contract contains all necessary clauses to protect your interests.

3. You Have a Thai Spouse or Partner

Many foreigners looking to buy property in Thailand are in a relationship or married to a Thai partner. In such cases, it is legal for the Thai spouse to purchase land, though the foreign partner's name won't appear on the ownership documents - a potential drawback.

To safeguard both parties' interests, it is highly advisable for couples to seek legal assistance from a real estate lawyer experienced in handling foreigner property rights and joint ownership arrangements. Before signing any contracts, an expert lawyer can ensure robust safeguards are implemented to protect each partner equitably, even in unfortunate circumstances like separation or one spouse's passing. With proper legal counsel, foreigners can confidently navigate this path to property ownership while securing their rights.

4. Limited Company Purchases

Another popular avenue for foreigners to buy property in Thailand, especially private villas, is through the establishment of a limited company to facilitate the purchase. There are specific requirements around the percentage of Thai shareholders needed for a limited company to qualify for property acquisition. However, an experienced real estate lawyer will be well-versed in these regulations.

When structured properly, a limited company allows foreign buyers to sidestep leasehold restrictions as the company itself can purchase freehold land. This opens up opportunities for foreign nationals to either own the construction of their home directly or have the company own it. Given the legal complexities involved, seeking professional legal assistance from the outset is highly recommended - both during the company formation stage and throughout the property and home construction purchasing process.

5. Document Conversion

For foreigners relocating to Thailand, having vital documents like work permits, visas, marriage certificates, adoption papers, and wills properly converted in accordance with Thai legal codes is crucial. Seeking legal assistance from an experienced real estate lawyer well-versed in foreigner property rights can ensure this process goes smoothly. A reputable lawyer can efficiently handle redoing and certifying your important documents to meet all government requirements seamlessly.

A lawyer isn’t the only thing you’ll need to buy property in Hua Hin – you’ll also need a great real estate agent. Contact the property experts at Hua Hin Property Partner today to learn how we can help!

Explore Property in Thailand Now!