Our guide to buy a house in Koh Lanta

Step 1: Select the right type of property to buy a house in Koh Lanta

Foreign nationals interested in acquiring residential property in Thailand must first understand the legal limitations on land ownership, as set forth by the Land Code Act B.E. 2497. While they are prohibited from owning land outright, the law permits alternative legal mechanisms which make it possible to buy a house in Koh Lanta in full compliance with Thai regulations. These mechanisms include long-term lease agreements, acquisition of condominium units, and construction of a house on leased land.

Leasehold agreements: a secure alternative to land ownership 

One of the most widely used legal options is the leasehold agreement. According to the law, land may be leased for residential purposes for a maximum term of 30 years but not renewable.

The lease agreement must be registered with the Land Department to have full legal effect. This registration ensures that the lease is enforceable against third parties and binding throughout its duration. It is also recommended that the agreement include provisions regarding succession rights, particularly if the foreign lessee wishes to pass the property interest to heirs.

Payment under a leasehold agreement can either be made as a lump sum for the entire duration of the lease or divided into periodic instalments, subject to mutual agreement between the parties. While lump sum payments are more common in resort areas like Koh Lanta, both options are legally permissible.

Condominium ownership: freehold title for foreigners

A more straightforward form of ownership is the acquisition of a condominium unit. Under the Condominium Act B.E. 2522, foreigners may acquire freehold ownership of units in a condominium project, as long as foreign ownership does not exceed 49% of the total floor area of all units in the building.

This structure grants the buyer a full ownership title (Chanote) over the unit, registered directly in their name at the Land Office. It is considered the most secure and permanent form of ownership available to foreigners in Thailand.

However, in Koh Lanta, the number of properly registered condominium projects remains limited. Buyers considering this option must ensure that the development:

• Holds a valid condominium licence issued by the Land Department;
• Has not already reached its foreign ownership quota;
• Is in full compliance with all building regulations and co-ownership rules.

Condominium ownership also comes with shared obligations, such as maintenance fees and participation in the juristic person’s general meetings. These obligations must be reviewed in the co-ownership regulations prior to signing.

Despite the limited availability, purchasing a condominium unit remains the most direct way for a foreigner to buy a house in Koh Lanta with a freehold title, provided that the project is properly registered and available.

Building a house on leased land 

Another commonly used structure involves constructing a house on leased land, which combines the long-term stability of leasehold with personalisation of the residence. In this structure, the foreigner leases a plot of land for up to 30 years and, based on the landlord’s written consent, proceeds to build a residential house.

Thai law permits the separation of ownership between land and building, meaning that the foreigner may be registered as the owner of the building even if the land remains under lease. To achieve this, the buyer must:

• Obtain a construction permit from the local Municipality Office;
• Ensure the lease agreement expressly allows for construction;
• Register the building ownership with the Land Department upon completion.

This structure provides substantial flexibility and control over the design and use of the house. However, it must be supported by solid legal drafting, especially to anticipate issues of renewal, succession, and rights of removal or compensation at the end of the lease term.

In all cases, professional legal assistance is recommended to ensure that the documentation is compliant with Thai law and that the right to buy a house in Koh Lanta is exercised through a structure that is enforceable, stable, and secure.

Step 2: Execute a due diligence to buy a house in Koh Lanta

Before proceeding with any property transaction, conducting thorough legal due diligence is imperative. The first element to verify is the status of the land title. The most secure form of land title is the Chanote (Nor Sor 4 Jor), which confers full ownership rights and permits registration at the Land Department. Other types of land titles may present limitations in terms of transferability, development, or registration.

The buyer must also verify that the seller holds legal ownership and has the right to dispose of the property. This includes reviewing the title history, identifying any existing mortgages or liens, and ensuring there are no ongoing legal disputes affecting the land. Particular attention must be paid in Koh Lanta, where informal succession and lack of registration are common and may result in conflicting claims.

A proper legal due diligence also includes an examination of zoning laws applicable to the land. Some plots may be restricted from residential or commercial use due to environmental protections, coastal setbacks, or national park boundaries. Without confirming these elements, the buyer risks acquiring a property that cannot be lawfully developed or occupied.

Step 3: Sign the reservation Agreement to buy a house in Koh Lanta

Once due diligence has been completed and the parties intend to proceed with the transaction, they generally enter into a Reservation Agreement. This document formalises the parties’ intention to transact and typically includes a commitment by the seller to withdraw the property from the market. The buyer usually pays a reservation deposit at this stage, which may or may not be refundable, depending on the terms agreed.

The Reservation Agreement serves as a transitional step before signing the main contract. While not legally binding in all aspects, it establishes a moral and financial commitment that paves the way for drafting the Sale and Purchase Agreement or Lease Agreement.