Can Foreigner Buy House?

[SomtamMcSporran]

I want to sell my house to a foreigner. Can I do this? 

What would I/they need to do? 

I've heard that they could set up a company with a Thai person, perhaps me. 

Any other way?

Also, he wants to pay in installments, what would I need to do legally as in setting up a contract where if he never paid it all, I would keep the land deed.

[longwood50]

The person would have to set up a company.  You should confer with an attorney on the actual process.  I certainly would not transfer the Chanote until the home was paid for.  You possibly could consider a long term lease with purchase provision.  

You keep the home in your name.  The purchaser gets a long term lease so they get use of the property.  The payments on the lease go towards reducing the balance owed to you until the home is totally paid off.  At the time the home is paid off, the purchaser would have to have a company to transfer the Chanote to.   Now it "may" be required that the lease be between you and the company in which case the buyer would have to set up the company now.  I say this because the lease agreement is between you and the eventual buyer.  

If you choose that route, I would have provisions in the lease agreement that mandated that insurance be required on the home for its replacement value, and that any community fees etc be paid.  You could require that the buyer show evidence of those being paid each year or you could pay them and in the lease contract stipulate they would be billed back and if not paid would be treated the same as missing a lease payment. 

[SomtamMcSporran]

19 minutes ago, longwood50 said:

The person would have to set up a company.  You should confer with an attorney on the actual process.  I certainly would not transfer the Chanote until the home was paid for.  You possibly could consider a long term lease with purchase provision.  

You keep the home in your name.  The purchaser gets a long term lease so they get use of the property.  The payments on the lease go towards reducing the balance owed to you until the home is totally paid off.  At the time the home is paid off, the purchaser would have to have a company to transfer the Chanote to.   Now it "may" be required that the lease be between you and the company in which case the buyer would have to set up the company now.  I say this because the lease agreement is between you and the eventual buyer.  

If you choose that route, I would have provisions in the lease agreement that mandated that insurance be required on the home for its replacement value, and that any community fees etc be paid.  You could require that the buyer show evidence of those being paid each year or you could pay them and in the lease contract stipulate they would be billed back and if not paid would be treated the same as missing a lease payment. 

Very helpful, thanks! 

[SomtamMcSporran]

If a lease is given for 20 years, does there have to be the option of buying the house?

I'm CV infused as isn't a ok ease just long term rent?

[Streetfood]

Are we (foreigners) allowed to purchase both land and house with a Thai company? I am an American. With the US Amity Treaty, does it allow me to own 100% of the company? Are there any limitations / conditions on the value and use of such a purchase? I had read a while back that the Thai government frowns upon "company ownership" of residential properties. Could there be any complications due to this? Or, was this misinformation?

[Faraday]

28 minutes ago, Streetfood said:

does it allow me to own 100% of the company?

No, 49% only.

 

[Faz]

On 1/5/2022 at 12:09 PM, SomtamMcSporran said:

I want to sell my house to a foreigner. Can I do this? 

What would I/they need to do? 

I've heard that they could set up a company with a Thai person, perhaps me. 

Any other way?

Theoretically in law, a foreigner cannot own land, but can lease the land and own the structure on the land.
This is at the discretion of the local municipalities. In highly foreign populated areas such as Chiang Mai or Hua Hin the municipalities have no objections.

Professional advice on the issue from Siam Legal here:
https://www.siam-legal.com/realestate/thailand-property-how-to.php
Watch the video from the 11th minute in.

[Guest1]

You wanna own land an house?

Finance minimum 70%  with a bank (SCB Singapore comes to mind, paperwork is done with one/your SCB branch in Thailand), for 20 years or such.

This way it is  (most likely) certain, that you have control about the land and all options to sell it / sign it over to someone else, cause the Bank is the 70% Thai owner in the books! Till you repaid the last baht!

 

[Vince]

4 hours ago, Faraday said:

No, 49% only.

There are rumors of ownership liberalization. Maybe might change? 

[Faraday]

2 minutes ago, Vince said:

There are rumors of ownership liberalization. Maybe might change? 

I sincerely doubt it.

 

[Vince]

Just now, Faraday said:

I sincerely doubt it.

I heard the word "treason" used in a discussion of liberalization of thai property ownership laws....

I was like "hmmm treason?" :-)

You may be right  

[Faraday]

1 minute ago, Vince said:

I heard the word "treason" used in a discussion of liberalization of thai property ownership laws....

I was like "hmmm treason?" :-)

You may be right  

I don't worry at all, that the house & land is in my wife's name. If I ever had any doubt, we wouldn't be together.

 

[Vince]

Just now, Faraday said:

I don't worry at all, that the house & land is in my wife's name. If I ever had any doubt, we wouldn't be together.

I think the changes are for investors - although home real estate speculation could boost your wife's home value :-) 

 

[Streetfood]

On 1/18/2022 at 5:15 PM, Faraday said:

No, 49% only.

I think this law only applies to non-Americans. For Americans, the US Amity Treaty provides an exception which allows US citizens to own 100% of "Thai company". However, I found out through further reading that there is a law that directly restricts foreign ownership. The only exception is investing 40Million Baht over 5 years. Even that only allows ownership during one's lifetime only. Ownership is not transferable by inheritance.

 

https://en.wikipedia.org/wiki/Treaty_of_Amity_and_Economic_Relations_(Thailand–United_States)

https://www.samuiforsale.com/knowledge/land-property-ownership-thailand.html

[Marc26]

On 1/18/2022 at 6:56 PM, Faraday said:

I don't worry at all, that the house & land is in my wife's name. If I ever had any doubt, we wouldn't be together.

Same here

 

I also look at it as "time served " after 18 years 

 

She can have the 5-8mil if things ever went pear shaped after 18+ years