Land ownership in Thailand is a right allowed only to Thai nationals. One common exception to this rule is the purchase by foreigners of individual condominium units. With the recent introduction of the amendments to the Condominium Act of Thailand, foreigners have now been permitted to fully own units provided that total foreign interest in any condominium project does not exceed forty-nine percent (49%) of the total condominium space.

As dictated by Thai financial policy, the payment of the purchase price is generally required to originate from an off-shore source in the form of Thai currency or Baht. This is important as the officer registering the purchase agreement will require the presentation of evidence showing that the purchase price was paid from an offshore account. This fact may be proven through the use of a Foreign Exchange Transaction Certificate or Form which usually requires two (2) days to issue. Moreover, it is also required that any and all foreign exchange transactions occur within the country in order to qualify the purchase as valid. Foreign residents possessing Permanent Resident Certificates are, however, exempted from any foreign fund requirements. Moreover, the Land Office where the purchase agreement is to be registered requires a letter from the seller or developer showing that foreign interest over the total unit floor space does not exceed forty-nine percent (49%). In the event that foreign interest over the condominium project exceeds this percentage, a lease rather than a sales agreement may be entered into covering the excess. The absence of any one of these requirements would result in the refusal to register the purchase agreement thereby barring the transfer of title in favour of the purchaser. The same requirements also operate when dealing with corporations partially owned by foreigners.

In order to ensure the success of a Thailand condominium purchase, the following steps are advised to be taken by any potential purchaser:

1. Physically inspect the building if possible. Defects in the construction and the physical integrity of the tenement may be noticed at the onset thereby averting any future problem.
2. Make sure a thorough investigation on the title of the land is made in order to provide relief from any future complications and guarantees the buyer peaceful occupation.
3. A simple background check on your co-owners may yield key information about the persons you intend to share your home with.
4. Ensure that you have a copy of the condominium’s rules and regulations as such lays down the duties each co-owner is required to observe. Procure an English translation if available or have one translated in to prevent any misunderstanding.
5. Know your monthly sinking and maintenance fees. These amounts are determined by the amount of space occupied by the unit owned and are commonly found in the condominium’s rules and regulations.
6. Have a good idea of who the Condominium Juristic Person is. A familiarity of the corporation or entity tasked with the maintenance of the condominium facility ensures that dealings are made in a fair and even handed manner. In fact, it is considered a legal right afforded to every co-owner to ask for the accounts of the corporation.

All in all, what makes a successful purchase of a condominium unit in the country is the proper exercise of due diligence in the steps leading to the eventual purchase of the unit and the recognition of the various legal requirements prescribed by the law. Being able to recognize and act according to the dictates of both guarantees a peaceful and enjoyable ownership.