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How to aquire land for your house in Thailand.

Land for sale

Land ownership in Thailand.

By Thai law a foreigner cannot buy land in Thailand, unless he invests a minimum of 40 Million Thai Baht in Thailand, in which case he can own maximum 1 Rai of land (=1600 m2).

Thailand however has a fully legal and reliable alternative
through “long term lease” (a form of leasehold).
Most foreigners who bought a house here in Thailand have used this option unless the land is registered on the name of the foreigners Thai partner

The land-lease agreement is generally made for a lease term of 30 years which can be extended with another 30 years and has to be registered at the district land office. Rent is payable in advance for the whole lease-period and is usually equal to the price of the land to be leased.
We strongly advice you to contact a Thai lawyer for drafting a land lease agreement that fits best your requirements. However, to get the lease registered at the land office, the representation by a lawyer is not a must, but for a small fee he can assist for a smooth procedure.

Below an example of a standard lease-agreement:

Sign

This Lease Agreement is between__________ hereafter known as the Lessor and
____________ hereafter known as the lessee.
It is hereby agreed as follows.
1. The Lessor agrees to lease and the Lessee agrees to rent land located at ______ in accordance to
Land Title Deed No. ______ Land Number ___________
Book number ____________ Page number _________
Tambon ___________ Total Land Size _____Sq Wah
hereinafter known as the "Said Premises" for a rent period of 30 years.
2. The Lessee agrees to a one time advance payment for the entire rent period in the amount of
________ Baht (_______________) to the Lessor on the date of this Agreement. The Lessor and
the Lessee agree to register the leasing terms and conditions at the District Land Office within 7
days after making this agreement. The rent begins on the date of registration at the District Land
Office.
3. Both parties agree that the Lessee shall have an option to renew this lease for an additional 30
years, for rental terms and conditions as mutually agreed by both parties.
4. After the date of this agreement the Lessee shall have the right to live in and conduct legal and
socially acceptable businesses in the Said Premises during the term of this Lease Agreement.
5. The Lessee agrees to take care of and to preserve the Said Premises as one would do to his/her
own and maintain the upkeep of and also attend to repairs of the Said Premises which may be
caused by accidental or intentional actions of the Lessee or the Lessee,s subordinates.
6. The Lessee may assign or sublet the Said Premises to other Parties. Should there be the need to
make official registration or other legal proceedings, the Lessor agrees to give consent and to assist
the Lessee in providing proper documentation and shall not ask for any returns from the Lessee.
The Lessee agrees to pay for any fee and other expenses that may arise from such proceedings.
7. The Lessee agrees not to damage or deface the Said Premises or make structural alterations or
additions thereto without the written consent in writing of the Lessor and all structural alterations
shall be in accordance with government and municipal guidelines. The Lessee agrees to pay any
costs involved while the Lessor agrees to provide necessary documentation in obtaining such official
permits.
8. Should the Lessor wish to sell the Said Premises, the Lessee shall have the first option to
purchase from the Lessor or the option to find another party to purchase from the Lessor. Should
the Lessee be unable to find such party to purchase from the Lessor the Lessor may sell Said
Premises as he/she so wishes. The Said Premises shall not be sold or Title transferred during the
Lease period. Debts accrued by the Lessor to outside parties shall not effect the lease terms.
9. Should Thai laws allow non-Thai citizens to purchase properties, the Lessor shall give the first
right to purchase the Said Properties to the Lessee as a special condition.
10. The terms and conditions of this Lease Agreement obligate the heirs of both parties to fulfill to
the letter and shall not be altered without mutual consent.
11. The Lessee shall be responsible for paying Building Tax (Rong Ruen Tax) and Land Tax for the
duration of the lease period.
12. Should the Lessor be unable to carry out the terms and conditions stated above the Lessee has
the right to ask for compensation five times the rent amount and the special condition amount that
the Lessee has prepaid.
13 In the event of the Lessee’s untimely death while the Lease Agreement is still in effect, the rights
and obligations of the Lessor shall be transferred to_________
Both parties having read and fully understanding its contents, agree to comply with all the terms
and conditions. Therefore both parties have hereunder affixed their signatures in presence of two
witnesses on the date at the place first written above.
___________________The Lessor
___________________The Lessee
___________________Witness
___________________Witness

 

© 2004-2011 ThaiLanna Home Co., Ltd. Chiang Mai - Phrae, Thailand. All rights reserved. Last update June 30, 2011 .