The first question about Thailand real estate leasehold: If the owner purchases a leasehold residence and wants to sell it to a new customer or pass it on to a child after 50 years, is the new 90-year period calculated?



A: Thai real estate law stipulates that residences should be transferred based on the remaining time. If 50 years out of the 90 years have been used, then only the remaining 40 years can be transferred or inherited. However, after the contract expires, it can be renewed for another 90 years.

Question 2 about Thailand’s real estate leasehold property rights: If one day Thailand’s policy changes and leasehold property rights are no longer recognized, will the house be reclaimed?



Answer: After a leasehold residence is registered with the Land Bureau, it enjoys the same legal protection as a permanent ownership residence during the contract period. At the same time, the Thai Constitution protects the inviolability of owned property, so the possibility of a policy change to not recognize leasehold ownership is very small. Foreign investment accounts for a very large proportion of Thailand, and many Thais are also homeowners in the form of leasehold ownership, so even if the policy is amended, they will definitely consider introducing corresponding response policies.

Question 3 of Thailand Real Estate Leasehold Property Rights: If the house is demolished during the 90 years, will the owner of the leasehold property receive corresponding compensation? If there is any compensation, will it be paid in cash or in the form of a house of the same size? Continue with the remaining years or sign a new 90-year contract?



Answer: During the period of leasehold ownership, the right to use the house belongs entirely to the owner. Thailand is a private property country. If demolition is required, the consent of all owners must be obtained. Whether the compensation is in the form of money or a house is negotiated between the owner and the renovation party, and there is no issue of forced demolition.

Question 4 of Thailand Real Estate Leasehold Ownership: The contract for a leasehold residence is renewed every thirty years. Will there be any fees when renewing the contract?



Answer: It is renewed every 30 years, and each renewal requires paying a transaction tax of 1% of the renewal rent and a stamp duty of 0.1%.

Question 5 of Thailand Real Estate Leasehold Property: What if something unexpected happens to the owner of a leasehold home within 90 years? Will the house be taken back or can it be inherited? If it can be inherited, how many years of ownership can be inherited?



Answer: If something happens to the lessee, the lessee’s legal heirs can inherit the lease ownership according to the remaining time of the lease agreement.

Question 6 of Thailand Real Estate Leasehold Property: Why are there so many leasehold property discounts? What is the fundamental difference between it and permanent ownership?



Answer: If something happens to the lessee, the lessee’s legal heirs can inherit the lease ownership according to the remaining time of the lease agreement.

Question 7 about Thailand Real Estate Leasehold Property Rights: Assuming problems arise in the subsequent company operations, how can we ensure that non-permanent ownership can be repurchased?



Answer: The repurchase policy only protects customers from possible risks, and is not a selling point. If the company fails and has no ability to repurchase the property, the leasehold ownership can also be traded normally on the surface of the city. Because of the low taxes, the appreciation of housing is an inevitable trend, otherwise the owners would not purchase the property just for the rental returns.

Question 8 of Thailand Real Estate Leasehold Property Rights: Will the developer take back the property of a non-permanently owned residence after the 90-year period?



Answer: According to the law, the right to use the house will be returned to the developer after 90 years, but the agreement stipulates that it can be renewed after 90 years, which is equivalent to 180 years. Moreover, after 90 years, the developer can continue to provide the house to the tenant for use, and there is no need to take it back.

Question 9 on Thailand Real Estate Leasehold Property: Are the taxes and fees for reselling a second-hand property with non-permanent ownership the same as those for a permanent property?



A: No, you only need to bear 1% transaction tax and 0.1% stamp duty.

Question 10 about Thailand Real Estate Leasehold Property Rights: If the developer no longer exists during the 90-year period, who should the owner contact for renewal? Is this contract still legally effective?



A: The leasehold purchase agreement has a clause that the ownership includes two 30-year renewals, for a total of 90 years. If the developer no longer exists, you can apply to the Land Bureau to renew the agreement. Furthermore, if the developer no longer exists and no one is taking care of the house, it will definitely still be owned and used by the current tenant.

Question 11 about Thailand Real Estate Leasehold Property: Must the leaseholder personally go to renew the lease every 30 years? What if he is unable to go for some reason?



Answer: You need to go in person. If you cannot go in person, you can get a notarized power of attorney document from the Thai Consulate in China and entrust it to the trustee to handle it. If the owner dies, the legal heir can handle the renewal plan with legal documents (such as a will or proof of inheritance relationship).

Question 12 about Thailand Real Estate Leasehold Ownership: Is the leasehold contract a unified model throughout Thailand?



Answer: There is currently no unified version of the house purchase contract for shared leasehold property and perpetual ownership property purchase contract in Thailand, and the government does not have any mandatory requirements. Because Thailand is a privately owned country with an integrated market economy, the agreement between the buyer and the seller is protected and recognized by law. Usually, the contract versions and terms of each developer are similar, with only individual terms different, which may vary depending on the project.

Question 13 of Thailand Real Estate Leasehold Ownership: Are second-hand transactions of leasehold ownership protected by law?



Answer: Yes, it is protected. The leasehold property rights are registered and filed with the Land Bureau and have proof of ownership. During the holding period, they are protected by law just like permanent ownership. For specific provisions, please refer to Articles 537 and 571 of the Commercial Code of the Kingdom of Thailand.

Question 14 of Thailand Real Estate Leasehold Property Rights: Is the buyback policy protected by law? How to do it specifically?



Answer: The repurchase policy is clearly agreed upon by the buyer and seller in the purchase agreement and is legally effective. The current specific operating procedure is that before the expiration of the 5-year period, the owner submits a repurchase application to the developer six months in advance. The developer will determine whether there is a possibility of need for repairs based on the use of the house (this process is not required if it is leased), and then prepare the repurchase documents and pay the house price to complete the transfer procedures. Before the 10-year period expires, apply to the developer six months in advance and follow the same process as above.