Land Purchase Agreement

To call upon a legal expert to buy your land in Thailand can allow you to sign in all serenity, in good financial and legal conditions. Contrary to a real estate agent or a real estate agency, the legal expert masters the process of sale to a developer and will be able to set up all the measures to protect you during and after the acquisition of your land. The purchase of a land in Thailand still presents many administrative difficulties, in particular for the foreigners. That is why our lawyers put at your disposal their legal and fiscal knowledge which will enable you to acquire your property in all serenity.

With Themis Partner, you can obtain a professionally drafted land purchase agreement template or contact a Thai lawyer directly to help you in your process. Our land purchase agreement template will allow you to benefit from legal protection for the purchase of your property and to benefit from the following clauses:

There are three different types of property in Thailand:

These are the only titles on which a property right or lease can be registered. These titles are also necessary to proceed with construction on the bare land.

Title deeds are officially called Chanote. It is a certificate of ownership that can be used as proof of ownership rights with government authorities. The land office issues this certificate. The Chanote is the most secure and viable title deed if you want to build or exploit your land.

The Nor Sor 3 is a document certifying the use of the land, which is issued and guaranteed to the owner by the land office. This means that the person who holds this title has the legal right to own the land in question and can use it as a legal document. These are plots without clear boundaries, without relations to other plots, but whose boundaries are set according to the neighboring fields.

The Nor Sor 3 Gor has the same legal basis as the Nor Sor 3. The difference is that the title to a parcel is more precisely delineated because each parcel is referenced by a more general survey and a corresponding aerial photograph. It is therefore possible to verify the boundaries of the property. However, the Nor Sor 3 Gor is less precise in its delineations than a Chanote.

Under Thai law, foreigners are prohibited from purchasing freehold land and may not own more than 49% of the shares of a Thai limited liability company that owns land in the company’s name. However, foreigners can own real estate even if they do not own the land, such as a condominium. Below are the options for a foreigner to land purchase agreement:

It is possible to enter into a 30-year leasehold for the land that includes options to land purchase and renew at the end of each 30-year period, which allows the property to be owned for a total of 30+30+30 years and the house to be registered directly in the leaseholder’s name. This involves registering the lease at the land registry office, which will transcribe in the land and house documents the data of the leaseholder as the new owner for all purposes, with the only limitation related to the expiration date, i.e. after 90 years. This gives the right to full ownership of the land and house for 90 years with the ability to rent or sell for the remaining years from the date of the original lease.

It is possible to purchase land from a Thai company that will be the direct owner. According to Thai law, this company must have the following shareholding structure: 49% foreign shareholders and 51% Thai shareholders. Of course, there are several procedures that allow you to legally control the company through the preferential and ordinary shares of the company and to reduce the voting rights of your Thai shareholder. Regarding the ownership of the building on the land, the house will be registered in the name of the foreign shareholder.

In Thailand, taxes related to the land purchase agreement vary depending on whether the property has been permanently transferred to a new owner or whether the land has been leased for an extended period of time. There are three different taxes to pay when buying land in Thailand:

In most cases, the payment of taxes is split between the seller and the buyer, as mentioned above. However, this split may change and be the responsibility of the seller or buyer if there is a contractual provision to the contrary.

To find out the exact amount of taxes related to the transfer of ownership, it is essential to contact the relevant land office and consult the registration value of the land. The rates will be calculated on the registration value of the land at the land office.

Contact the land agent to determine the value of the land and then calculate the taxes related to this value. By following all these procedures, you will be able to accurately determine the price of your taxes that will have to be paid to buy the selected land in Thailand. Finally, we recommend that you contact us to get all our assistance in land purchase.

The buyer of a building lot must carefully study his project before making a final commitment. If not, they may not be able to build their house as they dreamed or at a significant additional cost.

Once you have found a plot of land that suits you, you must make sure that it is buildable. It is therefore essential to check the constructability of the land with the relevant land office. However, other hazards may render the land technically unbuildable. Therefore, it is essential to remain vigilant about the type of land purchased and to be wary of agricultural land or forest areas which do not strictly regulate any construction of houses or dwellings in these places. Before buying a building lot, you should first check if the land is suitable for construction. You should also find out about the town planning regulations and check whether it can be serviced.

Before buying a building lot, you must find out about the nature of the soil. Indeed, the characteristics of the land can influence the overall cost of your construction. They may require the construction of specific foundations. In addition, the foundations of buildings located in seismic zones must be reinforced.

When the land is located outside inhabited areas, you will have to finance access to the various networks: water, electricity, gas, telephone. This is called servicing. The cost of this work depends on the distance of the networks from the land. A building plot is not necessarily serviced. Before buying, it is therefore preferable to find out more about the cost of these connections.

The measurements on the land register are only indicative. Only a boundary survey carried out by a surveyor will allow you to delimit the land with precision. It will determine the real limits of the land and its exact surface. Finally, you must verify the presence or absence of easements. These rights, held by third parties on your land, can limit its occupation. Indeed, a neighbor may have a right of way and, in this case, you will not be able to build on this area. The parcel may also be affected by public utility easements, for example the passage of cables or pipes.

The building permit is an administrative file to be submitted to the municipality where your plot is located for approval. It allows the administration to verify that your project complies with urban planning regulations. To request a permit, you must be the owner or have the owner’s authorization. But nothing prevents you from contacting an architect for small constructions. He will be able to accompany you in your steps and to conceive a durable and quality project. In any case, to start building, it is imperative to have a valid and not expired building permit issued by the local administration. In addition, you must verify that you have filed all the information concerning the surface, height and aspect of your house which must correspond to your building permit application.

Before starting all these formalities to buy your land in Thailand, Themis Partner can help you by providing you with a competent Thai lawyer to carry out the due diligence of your land and assist you in all the steps related to your land purchase agreement in Thailand.

The purchase of a piece of agricultural land is a project that must be carefully prepared. From the search for a property to the signing of the deed of sale, including the preparation of the file, discover all the steps to follow:

The location of the land: The location of the land you are looking for depends entirely on your project. Near a big city, in the countryside, or any situation in between, each location has its own advantages and disadvantages specific to you and your vision of your farm. Being in a Thai city that you love and have a good affinity for is a huge plus. Remember that your project is sustainable mainly because of positive interactions with the outside world.

Buying / Renting: You have two choices: buying or renting. Both have advantages and disadvantages.

On the one hand, buying gives you the certainty of keeping your land and controlling the various developments that will be made on it. You can plan for the long term and more easily pass on this built heritage to buyers who share the same values as you. On the other hand, renting allows for a lower investment for your installation. Your rental can be for a long or short period.

Surface: It is necessary to differentiate the total surface from the exploitable surface by considering the following points: access roads, buildings, wooded areas, water points, floodable zones, too superficial grounds. Thus, it is essential to proceed to a preliminary audit before buying your agricultural land.

Category/zone: There are different zones and categories of agricultural land in Thailand. Agricultural land is classified according to other criteria. These criteria are mainly agronomic. In addition, some agricultural lands allow buildings of a certain height. It is therefore essential to look at the planning regulations before buying land in Thailand.

Accessibility: This is an important point for future customers who would like to buy directly from you and bring in agricultural machinery. Even if you intend not to use mechanization in the future, you may need to make some adjustments up front or bring in large quantities. Access roads are essential.

Water points: Another criterion to consider when purchasing farmland, land, or a proposed farm facility. Thus, in almost all regions of Thailand, access to water is now essential. Several choices to solve the water problem are possible. However, it is interesting to combine several of them for a better resilience, especially as climate change will continue to modify both the amount of water in the year and its distribution.

Neighborhood: Being a farmer requires working with the environment around you, both natural and human. It is good to know what kind of cultivation and processing is done next to you, what mentality and atmosphere prevails in your territory. But also, in the case of houses, what are the possible constraints that would make you take time and energy for nothing. More and more second homes are being built in the countryside with the sole objective of absolute calm. It is therefore essential to respect local customs and traditions.

Previous cultures: What have been the different agricultural practices on this land before? This will give you a good indication of the condition of the soil and its various characteristics. The more information you have about the history of the plot, the better.

Soil depth: The depth of the soil is important. It will influence a lot of things later in terms of market gardening methods but especially on the viability of tree planting. It is however possible to raise the crop beds, but the amount of work required is not to be neglected. This will also influence management.

Fauna and flora: Observing the flora and fauna can give you reasonable indications of the quality of your land and the complexity of your ecosystem.