Designed for international buyers, ownership is secure and simple without the need to setup a Thai company or to have Thai partners. This essentially means you own the villa buildings and, because you cannot directly own a Thai land title deed, have to take a secure, long-term, renewable lease for the land plot – which is not as scary as it sounds and has many options for being renewed and is the most commomnly boughtand resold ownership structure.
Land, buildings, owners and transactions are a matter of public record at the land department so buyers can have their lawyer verifiy details prior to entering into a sale and purchase contract.
Anchan Villa Ownership comprises:
Registered ownership of the individual villa building
When buying a resale villa, the villa building is evidenced by any combination of (a) building permit (b) a building permit transfer (c) house registration (blue book), (d) a sales and purchase contract, or (e) a title deed as in a registered condo. In the event of a sale, the buyers lawyer will request and verifiy the above documents AND also verify the current owner at the land department. On a sale, the transfer of registered owner from the exisiting private owner is witnessed and registered by the the land department officer.
Registered ownership of the land lease for the land on which the villa sits granted by the landlord ( ANCHAN)
Land is evidenced by a land title deed that is kept and details entered into a register at the land department. The title deed has a
– front part describing exactly the land shape, size, coordinates and location
– a rear part has the origional owner and all of the transaction history listed up to the current time eg: sale and purchases, mortgage history (if any), loans taken and loans repaid, and registered lease history. Each entry is witnessed and recorded on the title deed by the land department officer, together with the official stamp.
Behind each transation entry, the land department will also have on file details of each transaction – so for a land lease it will have on file a copy of the lease agreement ( together with renewal and other terms agreed with the lease giver), a copy of the registration fees and taxes paid, etc.
Only Thai nationals or entities are allowed to own land, so typically international buyers take a lease of the land, often with options to automatically renew after 30 years, to convert to a transfer of the actual land title if they find and want to put it in a Thai name.
In the event of a sale, the buyers lawyer will verifiy the land title and the lease entry on the rear and then inspect the file details for the lease transaction. Typically, resales do not involve the actual land title owner, and it is the exisiting lease that is transferred – with the reminaing lease term and all the renewal options and terms. In this case there are two additional options granted by the owner of the title – restart the lease period at 30+30+30 years OR take ownership of the title deed. In both these latter two cases there is no extra price to pay BUT ADMIN FEES AND GOVERNMENT FEE REIMBURSEMENTS ARE PAYABLE TO THE CURRENT LAND TITLE OWNER.
On a sale the lease will be:
– to be transferred to the New Buyer
– OR at the New Buyers expense to have a new 30 year lease issued
– OR at the New Buyers expense to have the title freehold transfered ( also called taking the freehold of the land)
If you have questions, please ask.