The legal environment for the acquisition of real estates in Thailand:

During the last past years, the legal environment for the acquisition of real estates in Thailand was significantly changed and will continue to undergo on short-term modifications.

Several orderly then put legislations suspend it enticed an inequitable negative scale.

Whereas the new propositions clarify significantly a grey sector existing in Thailand, the means by which the foreign investors can acquire estate properties are limited in Thailand.

Indeed, most of the foreigners cannot buy of ground in Thailand, what brings an interest always increasing for agreements of long rent lasted by the foreign investors.

Today, the status guarantees for a lease registered in the department of grounds by foreigners is limited has a duration not exceeding thirty years. However, extensions can be recorded in the department of grounds to increase potentially the term of the lease in 90 years by registering three successive leases not to be greater than thirty years.

It is important also to clarify that the foreigners are capable of protecting their investments by adding particular clauses in the long-term rental agreements to avoid the problems which the foreign buyers can meet in Thailand.

For example, If the Owner or the tenant of an agreement of lasted long rent comes has to die, the lease is then made void and the heir of the landowner is not obliged to sign a new lease.

However, if clauses are added to rental agreements, the heirs of the landlord and the buyer will have to honor the registered leases or lose their inheritance taxes.
Consequently, the recording of separate contracts is sometimes necessary.

Some of the leaders of the market also incorporate a supplementary protection for the investors by adding supplementary clauses in their agreements of long rent lasted to indemnify the tenants if the extensions of the lease were not registered in the department of grounds.

These safeties are organized to increase the charm of these projects and essentially to get closer as much as possible to the freehold title in order to protect the investors and their investments.

Certain agreements also foresee the conversion of the rental agreement long duration in deed of property if future laws in Thailand allow the foreign investors the acquisition of real estates in freehold title.

We continue to advise our clients that the long-term lease is the surest way to become a property owner in Thailand.

We well established property developers sums confident that these projects presented on the market of the real-estate today with the long-term lease will prevail.