Registration and conveyance in Thailand.
When dealing with the government agencies in Thailand, it is always recommended to have proper legal representation. Our legal team is highly experienced and prepared to assist with all your property requirements. We will accompany to the appropriate local land department and represent you in the execution of your conveyance or registration.
Transferring property in Thailand.
Our property registration services include:
Some of these transfers and registration have complicated rules, and become even more complex when foreigners are involved. For example, if a foreigner owns a condominium and wishes to give it to a friend who is a foreigner, he cannot simply execute a deed of donation to transfer the ownership. The law states that there is no automatic transfer of ownership, there must be a sale.
Consequently, the following proof needs to be provided:
- The money for the purchase of the condo is transferred from abroad
- More than 51% of the total building is owned by Thai
- Transfer taxes and government fees need to be paid on this sale, even if it is simply a gift
The transfer agreement is thus of high importance. It will for example show who is paying for the taxes and government fees. If such clause is missing when you are buying a new condo, both the seller and the buyer will be responsible to pay for such equally. The seller alone will need to pay the income tax, specific business tax and stamp duty.
A land conveyance cannot simply be done by handing over the title deed; there is a formal process that involves both parties registering the transfer of ownership at the Land Department. The transfer involves both tax and government fees. When ownership is transferred there is a transfer fee, and this is not a tax but rather a government fee. It is 2% of the appraised value of the land, which is a calculation used by the Land Department and Treasury Department and is not the actual sale value. Unless certain exceptions apply, there is also a specific business tax of 3.3% on the registered sale vale or the government appraised value, whichever is higher.
You first need a building permit from the local Or Bor Tor (the local government, also called the Tambon Administrative Organization or TAO). The building permit is evidence that you own the house, as well as the approval allowing you to build the house. The building permit is what is submitted to the land office when the house is transferred. The building permit may be put in the builder’s name if there is a builder involved, but you should change this to your name before the issuance of the house registration book (tabien baan). The building permit is proof that you own the land, this is especially important when there is a separate lease (and owner) for the land and house.
There are many laws connected to zoning, and you will want to make sure you don’t violate any of those. There is the Building Control Act and the City Planning Act that has regulations on construction, zoning and permissible uses of land. There are environmental and other laws to look into as well (such as the Forest Act), and you will want to make sure what you build will not violate any of these acts. It is important that you look into all this information before you spend time and money constructing anything on the land. Note if the building is built illegally or violates building regulations, there can be heavy fines, or in the worst case imprisonment. There could also be issues having to rectify issues arising from not building according to regulations, or in the worst case complete demolition of the construction performed. This is why it is imperative that you speak with our lawyers so that we can verify that there will be no issues.