Property Law
Property law in Thailand governs the ownership, use, and transfer of real estate and personal assets. Whether you are buying a home, leasing commercial space, or entering into a property dispute, understanding your legal rights and obligations is essential. Thai property laws include specific regulations on foreign ownership, land titles, mortgages, and property transactions. Navigating these rules can be complex, but with the right legal guidance, you can protect your investment and ensure a smooth process from start to finish.
Land Ownership for foreign nationals
Under Thailand’s Land Code, only Thai nationals may own land. Foreigners are generally prohibited from owning land, and there are currently no treaties allowing foreign land ownership. Violation can result in fines or up to two years in jail.
Limited exceptions exist under Section 96 bis, allowing certain foreigners to own up to 1 rai (1,600 sqm) for residential use after investing at least 40 million Baht in BOI-approved assets. This approval is rare, and ownership is non-transferable and non-inheritable.
Foreign corporations may also qualify for land ownership through BOI, IEAT, or Petroleum Act privileges, but only for the duration of their business and with substantial investment.
Due Diligence
We offer comprehensive due diligence for property transactions in Thailand. Our services include verifying land title deeds, checking encumbrances, liens, or mortgages, confirming zoning and land use restrictions, and reviewing lease agreements or corporate ownership structures.
We also conduct background checks on sellers or partners and identify any legal risks before you commit. With our due diligence, you can move forward with confidence and avoid costly surprises.
Superficies Agreement
Under Sections 1410–1416 of the Thai Civil and Commercial Code, a right of superficies grants a person (the superficiarius) the right to build and own buildings, structures, or plantations on land owned by someone else. This right is registered at the Land Office and legally separates ownership of the land from ownership of what sits on it.
The right is typically granted for up to 30 years or for the lifetime of either party. The superficiarius owns the building without owning the land. A superficies can be registered before or during construction, but generally not for an existing building unless official transfer and taxes are paid.
Usufruct
Under Sections 1417–1428 of the Thai Civil and Commercial Code, a usufruct grants a person the right to use or occupy another person's real property for their lifetime or for a fixed term of up to 30 years. The right must be registered with the Land Department to be legally valid.
Once registered, the usufruct continues for the lifetime of the usufructuary. Upon their death, ownership of the property reverts fully back to the landowner. A usufruct is commonly granted to a foreign spouse, ensuring they have the right to remain in and use the family home even after their Thai spouse (the registered owner) passes away.
Property Purchase Agreement
A property purchase agreement is used to buy or sell property. There are two types: for immovable property (land and buildings) and movable property (everything else).
Immovable property agreements must always be in writing, otherwise they are legally void. Movable property agreements only require a written contract for sales over 20,000 Thai baht.
If the agreement is in multiple languages, specify the governing version; otherwise, the Thai version prevails.
Drafting these agreements can be complex. Opus Law can help you avoid legal issues and ensure a smooth transaction.
Escrow
OPUS Law can help facilitate escrow arrangements for property transactions, business acquisitions, or any high-value deal in Thailand. We act as a neutral third party to hold funds, title deeds, or legal documents until all agreed conditions are met.
Our role includes drafting the escrow agreement, verifying compliance with terms, and ensuring a secure release of assets to the right party at the right time. With OPUS Law managing your escrow, you reduce risk, build trust between parties, and ensure a smooth, transparent closing process.
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