Thai Property & Land Documents — 6 Cases

Section 19 bis of the Condominium Act B.E. 2522 caps aggregate foreign ownership in any condominium building at forty-nine percent of the total unit floor area. The ratio is measured by area, not by unit count. A building whose foreign quota is already full cannot transfer another unit into foreign name, so ask the juristic person for the current ratio letter before committing substantial funds — not a few days before the transfer date.

Section 19 ter sets out the evidence a foreign buyer must show the competent official. The most common route is remitting foreign currency into Thailand and converting it to baht to buy the unit, evidenced by documentation from the receiving commercial bank. Banks currently issue a foreign transfer confirmation under Bank of Thailand rules; the document's name and format have changed over time with BOT announcements, so tell the bank at the time of transfer that the funds are for a condominium purchase, and make sure the stated purpose and the buyer's name match the person who will hold title.

Section 538 of the Civil and Commercial Code requires a lease of immovable property to be evidenced in writing signed by the party liable, failing which it cannot be enforced by action. A lease longer than three years, or for the life of the lessee or lessor, must additionally be made in writing and registered with the competent official, otherwise it is enforceable for three years only. This is why long leases signed privately and never registered collapse to three years in a dispute.

Section 540 caps a lease of immovable property at thirty years; a longer term is reduced to thirty years. The lease may be renewed on expiry, but the renewed term must again not exceed thirty years from the renewal date. A promise in the first contract to grant another thirty years therefore does not automatically give the tenant sixty years. Thai courts have taken more than one view on the binding effect of such promises, so relying on a renewal clause alone carries risk that should be assessed with a lawyer before a large investment.

A usufruct under section 1417 gives the holder possession, use and enjoyment of immovable property, including the ability to let it to others within the limits of the law and the agreement. Section 1418 allows a usufruct for the holder's life or for a fixed term, and a fixed term may not exceed thirty years. A usufruct ends on the holder's death and cannot pass by inheritance.

Superficies under section 1410 gives the right to own buildings, structures or plantations on another person's land. Unlike usufruct, it centres on the structures, which makes it the usual tool where one person owns the house and another owns the land. Section 1412 permits it for a fixed term or for life, again capped at thirty years for a fixed term. Unlike a usufruct, superficies is transferable and can pass by inheritance unless the parties agree otherwise.

The Department of Lands prescribes its own power of attorney forms: Tor.Dor.21 for land and Or.Chor.21 for condominium units. Land Offices work from the departmental form, and a self-drafted general power of attorney is often refused, so obtain the correct form and complete it fully before sending it abroad for signature.

The authority granted must be specific: the act to be performed, the title deed number, parcel and survey page numbers, sub-district, district and province, and the attorney's full name. Broad wording authorising 'anything necessary' invites objection, and blank spaces invite later insertion — strike through unused space and initial it.

A Thai title deed carries details that are easy to mistranslate: the deed number, parcel number, survey page, map sheet, and area expressed in rai, ngan and square wah, plus the registration record on the reverse listing sales, mortgages and encumbrances in date order. Overseas recipients often care about that reverse record as much as the front page, so the translation must cover both sides, not only the page showing the owner's name.

Thai area units have no direct metric equivalent. A good translation keeps the original units and adds an approximate square-metre figure in brackets: one rai equals four ngan, one ngan equals one hundred square wah, and one square wah equals four square metres. Dropping the original units makes it impossible to reconcile the translation with the source.

The debt-free certificate under section 29 of the Condominium Act B.E. 2522 is issued by the juristic person's manager and confirms that the unit has no outstanding common-area charges. The competent official at the Land Office relies on it to register a transfer, and any arrears must be cleared first or the transfer cannot proceed.

The juristic person's regulations are registered with the competent official and set out co-owners' rights and duties, the common-expense ratio, meeting procedures and restrictions on common property. Foreign co-owners who want a complete picture of their rights generally need a certified translation, because the regulations are drafted in Thai.