Secure your investment with our property lawyers in Thailand

Why do you need property lawyers in Thailand for real estate transactions?

Purchasing property requires careful legal attention. Property lawyers in Thailand ensure compliance with local laws, particularly for foreign buyers facing restrictions under the Land Code and Foreign Business Act. With their guidance, buyers gain clear insight into which types of property are available, like condominiums, and what limitations apply to direct land ownership. The right advice helps clients make informed decisions.

How can property lawyers in Thailand assist foreigners in buying property?

In Thailand, foreign buyers must follow specific legal paths to acquire property. Property lawyers in Thailand are essential in guiding clients through each option.

Buying a condominium in Thailand

Foreigners can own condominium units up to 49% of a building’s total units. Property lawyers in Thailand confirm that this quota is available, draft a clear sale and purchase agreement (SPA), and handle registration at the Land Department. They also ensure that each transaction aligns with the Condominium Act, so clients are fully protected.

Using a Thai limited company

Foreigners can own property through a Thai company, but no more than 49% of shares. Our lawyers will help structure companies to comply with this rule. They guide clients through creating and registering a company, ensuring compliance with Thai law and protecting the foreigner’s interests. This route offers flexibility but requires strict legal oversight to avoid complications.

Securing a long-term lease

For those unable to purchase land outright, a long-term lease (often up to 30 years) offers an alternative. Our lawyers draft these agreements to include renewal options and secure registration with the Land Department. By ensuring leases are legally binding, a lawyer protect foreign lessees’ rights.

What due diligence do property lawyers in Thailand conduct?

Our lawyers perform essential due diligence, ensuring each property is legally sound and free from disputes. They confirm title deeds, the seller’s ownership rights, and any existing encumbrances. By checking for legal issues, lawyers prevent potential complications, allowing transactions to proceed smoothly.

Additional due diligence includes verifying the legitimacy of the juristic person (such as a developer or homeowner association) and ensuring there are no tax liabilities. A lawyer can cover all these areas to protect buyers from unforeseen legal risks.

How do property lawyers in Thailand handle contract drafting and review?

Our lawyers draft and review all necessary contracts for real estate transactions, such as sale and purchase agreements, lease agreements, reservation agreements, and escrow arrangements. These contracts outline key terms, payment schedules, and both parties’ responsibilities.

Sale and purchase agreement (SPA)

Lawyers can draft SPAs, which clarify sale terms, price, payment schedules, and transfer conditions. They ensure compliance with Thai property laws and protect clients by addressing ambiguities, such as remedies for breach of contract.

Lease agreement

For long-term leases, a lawyer can draft terms that align with local laws while protecting the lessee’s interests. Leases exceeding three years require registration with the Land Department, which lawyers handle to ensure enforceability.

Reservation agreement

Our lawyers can secure properties through reservation agreements, which prevent sellers from selling to another party while clients finalize their purchase terms. Lawyers make sure that these agreements clearly outline reservation fee terms and refund conditions.

Escrow agreement

In high-value transactions, escrow agreements hold funds securely until contract conditions are met. Our lawyers can draft and manage these agreements, ensuring funds are released only after conditions are fulfilled.

How do property lawyers in Thailand assist with ownership transfer?

Ownership transfer in Thailand involves various legal and administrative tasks that property lawyers handle efficiently. A lawyer can also prepare all required documents, including title deeds, transfer forms, and tax receipts. They also coordinate with the Land Department to ensure a seamless transfer.

For foreign buyers, property lawyers in Thailand ensure compliance with the Condominium Act, which mandates that foreign ownership must not exceed 49% of the building’s units. They also calculate transfer fees and withholding taxes, helping clients understand and minimize transaction costs.

What tax compliance services do property lawyers in Thailand offer?

Property lawyers in Thailand handle tax compliance in property transactions, advising clients on transfer fees, withholding taxes, and specific business taxes. They ensure all taxes are accurately calculated and filed, which is crucial for avoiding unexpected costs.

Transfer fee

This fee, 2% of the registered value, is typically split between buyer and seller. Property lawyers in Thailand confirm these terms and manage payment at the Land Department.

Withholding tax

For individuals, this tax depends on the appraised property value and years owned. For companies, it’s a flat 1% of the sale price. Specialized  lawyers provide strategies for tax efficiency.

Specific business tax (SBT)

If the seller has owned the property for less than five years, a 3.3% tax may apply. Property lawyers in Thailand calculate this accurately, ensuring compliance with Thai tax law.

How do property lawyers in Thailand handle dispute resolution?

In cases of real estate disputes,lawyers represent clients in negotiations, mediation, or litigation. Disputes may involve breaches of contract, lease disagreements, or conflicts with developers. With their knowledge of Thai real estate law, property lawyers in Thailand advocate for clients, pursuing amicable resolutions.

A lawyer may initially attempt mediation or arbitration to resolve conflicts without court proceedings. However, if necessary, they provide representation in court, safeguarding clients’ rights throughout the litigation process.

Conclusion:

Real estate investments in Thailand carry legal complexities that require expert guidance. Property lawyers in Thailand provide critical support at each stage, from conducting due diligence and drafting contracts to managing ownership transfer and ensuring tax compliance. Foreign buyers, in particular, benefit significantly from the expertise of property lawyers in Thailand, who understand the legal restrictions and offer secure solutions.

With the support of property lawyers in Thailand, clients can navigate the local real estate market with confidence, ensuring their investments are protected and legally sound.