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Buying a house in Hua Hin: the essential steps
Buying a house in Hua Hin, Thailand, is strictly regulated by the Land Code Act B.E. 2497, which formally prohibits foreign nationals from owning land outright. This prohibition applies to all direct acquisitions, regardless of the type of ownership. However, there are several legal alternatives that allow foreigners to secure the use of residential property, either through a long-term lease, by purchasing a condominium unit, or by building a house on leased land under conditions strictly regulated by law.
Table of Contents
Step 1: Choose the type of property in Hua Hin
Buying a house in Hua Hin, Thailand, requires identifying the legal solution that is appropriate under Thai law from the outset. There are three main options that allow a foreign national to secure a real or personal right to residential property in accordance with the laws in force: a long-term lease, acquisition of a condominium, or construction on leased land.
The 30-year lease: a solution governed by civil law
The use of a 30-year registered property lease, also known as a leasehold, is the most common option for foreign investors. It is governed by the provisions of the Thai Civil and Commercial Code, which provide for the possibility of entering into a lease agreement for a maximum term of 30 years, non-renewable.
This lease must be in writing and registered with the relevant Land Department in order to be enforceable against third parties. It gives the holder the exclusive right to occupy the land, to enjoy it freely and, subject to specific clauses, to transfer or sublet this right to a third party.
The terms of payment of the rent may vary: some transactions require full payment of the rent at the beginning of the lease, while others allow for payments to be spread over the term of the contract.
Buying a condominium: the only right of full ownership available to foreigners
Buying a condominium in freehold is a particularly secure alternative for foreigners wishing to invest in residential real estate in Hua Hin. This mechanism is governed by the Condominium Act B.E. 2522, which allows foreign nationals to acquire one or more apartments in a condominium building, up to a limit of 49% of the total area of the property.
Unlike a 30-year lease, the purchase of a condominium confers direct ownership rights that are fully enforceable and transferable, including to heirs or third parties in the event of resale. However, this acquisition is subject to certain formal conditions, including the obligation to prove that the funds were brought in from abroad using a Foreign Exchange Transaction Form (FETF).
Compliance with this formality is essential to enable the transfer of ownership to be registered with the Land Office and to guarantee the future repatriation of capital in the event of resale.
This type of property is particularly suitable for buyers looking for a simple, quick and legally stable solution. It is often the preferred option for investors wishing to avoid the constraints associated with land rental or complex contractual arrangements.
Building a house on leased land: a more complex operation
A third, intermediate solution is to lease land on a 30-year lease and build a house on it. In this case, the foreign investor never becomes the owner of the land but may hold full ownership of the building erected on it, provided that the lease agreement contains an express clause authorizing this. This arrangement requires the signing of a construction contract with a local company or an independent contractor, as well as the prior obtaining of building permits.
This type of transaction requires rigorous legal coordination between the lease, the construction contract, and any administrative declarations. In the event of resale, it will be necessary to verify the possibility of transferring both the house and the lease under the same conditions. If the lease expires, the property must be demolished, transferred, or renegotiated with the lessor.
This type of ownership is more complex but may be suitable for customized projects, particularly when the buyer wishes to build a custom-designed villa in a specific location in Hua Hin.
Step 2: Carry out due diligence to buy a house in Hua Hin
Due diligence is an essential step in any home purchase project in Hua Hin, Thailand. It begins with verifying the title deed for the land or building. The Chanote (Nor Sor 4 Jor) title deed offers the most secure form of ownership and is recommended for all real estate transactions.
Conversely, Nor Sor 3 and Nor Sor 3 Gor titles, which only allow temporary or partial possession, require greater legal precautions.
The lawyer will need to verify the real identity of the owner and check that the land is free of any mortgages, easements or ongoing disputes. If the property belongs to a company, it will be necessary to analyze the articles of association, the Thai K-Bis extract (Company Affidavit), internal resolutions, and the signing powers of the representatives.
For land to be built on, building permits must be checked, as well as the express authorization of the owner to transfer the use of the land and allow construction.
This phase also allows you to verify that the project complies with local urban planning standards, alignment rules, distance from the sea (particularly in coastal areas), and that it is not a non-compliant construction or partially built on public land.
Step 3: Sign a reservation contract to buy a house in Hua Hin
Once the property has been legally validated, signing a reservation contract allows you to block the transaction for a specified period of time. This contract commits the seller not to offer the property to a third party and details the amount of the reservation paid by the buyer.
It may also contain an exclusivity clause, a deadline for signing the main contract, and penalties in the event of withdrawal.
This contract does not yet transfer ownership but sets out the essential terms of the future sale, providing temporary security while the final contract is being drafted.
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Step 4: Sign the main contract (SPA) to buy a house in Hua Hin
The main contract, i.e., the Sale and Purchase Agreement (SPA), is the fundamental document that legally seals the transaction. It must be written in Thai and, in most cases, translated into English.
This contract specifies the price, the description of the property, the contact details of the parties, the payment terms, any conditions precedent and the consequences of non-performance.
It also formalizes the obligations of each party with regard to the transfer, registration, taxes and handover of the property.
If the transaction involves a house on lease, the SPA must be accompanied by a lease agreement, also signed and registered. Particular attention must be paid to clauses relating to construction work, completion of construction, structural guarantees, and the future use of the property.
Step 5: Transfer funds from abroad to buy a house in Hua Hin
The transfer of funds for the purchase of a house in Hua Hin, Thailand, must be made from abroad in order to obtain the tax documents required for a future resale. For amounts exceeding USD 50,000, a Foreign Exchange Transaction Form (FETF) must be obtained from the Thai receiving bank.
This form will serve as proof that the money has been legally brought into the country and will allow the funds to be repatriated at a later date if necessary.
It is also required for the registration of certain real estate transactions, particularly in the case of co-ownership. The buyer must ensure that the name on the bank document matches exactly the name on the contracts to avoid any delays in registration.
The origin of the funds must be traceable and comply with anti-money laundering rules.
Step 6: Registration of the sale or lease with the Land Department
The registration of the sale or lease agreement is the final legal act of the transaction. It takes place before the competent Land Department in Hua Hin. In the presence of all parties and their representatives, the contracts are read, signed, and registered by a registration officer.
In the case of a 30-year lease, the contract must be registered to be effective against third parties and enforceable against future purchasers or heirs. In the case of a condominium, the transfer of ownership is also carried out at the Land Department, with the issuance of a new co-ownership title in the name of the foreign buyer.
Registration fees, including transfer duties, specific business tax, and stamp duty, are calculated based on the declared value of the property and the length of previous ownership. In general, the fees are split between the seller and the buyer according to the terms of the contract.
Additional documents (Yellow Book and Pink Card)
Once the purchase of a house in Hua Hin, Thailand, has been finalized, it is advisable to request certain additional documents. The Yellow Book (Tabien Baan) is proof of residence for a foreigner who owns property in Thailand. It is not a title deed but facilitates many administrative procedures.
The Pink Card is an identification card for foreigners who have a Yellow Book. Although it has no value in terms of right of residence, it is often required for procedures such as opening a bank account, signing contracts, or applying for permits.
Conclusion
Buying a house in Hua Hin, Thailand, requires careful planning, detailed knowledge of local real estate law, and strict legal supervision. In the absence of direct land ownership rights, foreigners must turn to alternative structures such as registered leases or the purchase of condos.
Each step—from choosing the property to final registration—requires a thorough understanding of contractual, tax, and regulatory requirements.
Hiring a specialized lawyer will help secure the transaction, avoid pitfalls, and ensure that the investment complies with local rules. In a market as active as Hua Hin, this support is an essential guarantee for any foreign buyer wishing to invest in Thailand for the long term.
FAQ
A foreigner cannot own land in Thailand, but they can legally become the owner of a house built on land leased through a 30-year registered lease.
Buying a condominium remains the safest option for a foreigner, as it allows them to obtain full ownership rights, subject to certain conditions laid down by law.
No, the 30-year lease cannot contain an automatic renewal clause.
Yes. Both the lease agreement and the transfer of ownership of a condo must be registered with the Land Department to be legally valid and enforceable.