Construction Contract

Building a house in Thailand is a serious project. Among the many possibilities of construction, development and financing, everyone can find the solution adapted to his desires and needs. Often, building a house in Thailand is much more profitable than buying a property, provided you find the right construction company.

The restrictions on foreign ownership in Thailand apply only to land, not to the buildings that can be built on that land. Ownership of land and facilities are not intrinsically linked and can be assigned to different persons. Thus, a foreigner wishing to build a house in Thailand may lease the land under a long-term lease, and on the other hand, own the house in his own name.

The construction contract is a natural protection against dubious and trusting builders. It is nowadays more and more widespread and highly recommended. It offers a higher degree of legal security than other construction contracts. Indeed, signed with independent companies in Thailand or with a builder providing a turnkey service, the construction contract determines the commitments of each of the participants, plans the progress of the construction site and serves as a reference in case of litigation.

The construction contract is a real protection against some dubious builders. Today, it is more and more widespread and highly recommended. It offers a higher degree of legal security than other construction contracts.

With Themis Partner, our model construction contract offers you enhanced legal protection and mentions the following mandatory information:

The choice of land is an essential step. Before signing, it is strongly advised to make an appointment with your notary or the notary in charge of the sale. He will carry out all the necessary research to allow the future owner to make an informed decision. It is essential to ask yourself the following questions before embarking on the construction of a house:

The buildings do not have a title as such. The procedure for obtaining the right to a house built on the land is as follows:

Building a house is not a trivial project. It is often the project of a lifetime. From the choice of land to the handing over of the keys, through the elaboration of the plans, it is necessary to remain vigilant at each stage of the construction.

Before you embark on your construction project, it is essential to take all the necessary steps to ensure its financing. The construction of your individual house has a significant cost, including fixed costs and additional expenses, which can upset your estimate. Establish a provisional financing plan with your banker to evaluate your borrowing capacity, which depends on your contribution and your income. To obtain the best loan conditions, don’t hesitate to shop around. Find out about any housing subsidies you may be entitled to.

Once your budget is defined, you will need to find a suitable plot of land to build your project. Knowing that the land can represent up to 50% of the total cost of your construction project, this step is not to be taken lightly. Several criteria must be taken into account, including orientation, exposure, soil quality, neighborhood and water, gas and electricity connections. To do this, ask your neighbors or contact the town hall of the municipality concerned. It is also essential to consult the plans and documents of the land registry to verify the exact location of the land. It is also necessary to analyze the characteristics that can increase the value of a plot of land, in view of a future resale: proximity to shops, schools, parks and public transport.

Once the construction contract is obtained, the long-awaited moment arrives: the beginning of the construction of your house. For this stage, if you have not opted for self-building, you have the option of turning to a builder or an architect. In any case, it is advisable to play the competition by carrying out estimates in various companies, which will enable you to benefit from quality services at the best rates. Moreover, do not hesitate to inquire about the previous constructions of the company and its financial health. For that, do not hesitate to question your entourage. This will allow you to avoid certain disappointments.

During the construction of your house, the follow-up of the building site is essential to check that the work is carried out in time and that it is in conformity with your expectations. Site meetings are scheduled at various critical stages of the construction, corresponding to the payment of each invoice.

The seller of a house must have a construction contract issued by the local government called Or Bor Tor. The construction contract is proof that he is the owner of the house and that he has received permission to build it. The construction contract must be presented to the property administration when the property is transferred. On the other hand, it will be necessary to verify that the house was built in accordance with the construction contract. If a seller cannot produce a construction contract, extreme caution should be exercised as this could mean that the house was built illegally or in violation of local standards.

In Thailand, the Building Control Act provides for heavy fines and jail time for those who violate the law. In case of non-compliance, the authorities can stop the construction or request a rectification to ensure that the construction complies with the building permit. The authorities also have the power to order the demolition of any building built illegally. Where a long-term tenant hires a builder, the building permit may be issued in the name of the builder or the owner of the land. In this case, the name on the building permit must be changed to Or Bor Tor to the name of the tenant of the land. This must be done before the Tabien Baan is issued. The building permit is proof that a person owns a house. Separating the ownership of the house from the land increases the legal security of the tenant and reduces the taxes to be paid.