Q.- 1. How to Measure in Thai?

A.-
6.25 Rai = 1 Hector
2.5 Rai = 1 Acre
1 Rai = 4 Ngan (1,600 sq.meter.)
1 Ngan = 100 sq.wha.
*1 sq.wha = 4 sq.meter.

Q.- 2. What is Land Title Deeds in Thailand?

A.- There are several kinds of title deeds in Thailand. Each title describes the legal or holding rights to a specific parcel of land.

• Chanode : is the most legal land deed in Thailand. It is accurately surveyed and GPS plotted based on the national survey grid. This land deed reveals all details about the land such as size, exact boundaries, marking posts, and all transferring of ownership legally registered on the deed by the Land Department, Ministry of Interior.
• Nor Sor Sam Gor : is a confirmation of rights to use the land. This kind of title deed is similar to Chanode but it is inaccurately surveyed than the Chanode. Nor Sor Sam Gor certifies the name of the individual who is granted the right to use the land for agricultural or commercial purpose. It consists of all detailed description of that parcel of land similar to a Chanode as well as all other historical transfers. Nor Sor Sam Gor can be upgraded to a Chanode when some discrepencies in the length and areas of the land initially measured from the neighboring demarcation line are rectified and recorded.
• Nor Sor Sam : doesn’t meet the standard for upgrading the deed to a Chanode and the right to use the land is pending confirmation.
• Sor Kor Nueng : only a piece of document signifying the possession of the land but without any legal rights or ownership of it.

Q.- 3. How can foreigner purchase properties?

A.- Normally foreigners cannot purchase or own properties in Thailand. However, there are certain regulations that allow foreigners or foreign juristic entities to acquire properties in Thailand under the following conditions:
• The Board of Investment (BOI) and the Industrial Estates Authority has the approving power to permit foreign companies owning land for the purpose of carrying out operations related to the promoted business under which they were granted.
• Approval can also be granted under the Petroleum Act for operations related to the petroleum projects listed by the Board of Investment.
• Foreign banks and financial institutes that have merged or have taken over Thai institutes engaging in the same type of industry.
• A foreigner who invests at least 40 million baht in public listed securities in Thailand’s Stock Exchange may buy up to 1 Rai (1,600 sq.meters.) of land solely for residential purpose.

In Koh Samui, foreigners wanting to own property usually take two expedient methods to achieve the same objective by:
1. Registering a Thai Limited Company, then purchase properties through this company, or;
2. Registering a Land Lease for certain period of time for commercial purpose.

Q.- 4. How to registered Thai Limited Company?

A.- To set up a Thai limited company, at least 7 shareholders are needed to register. Under Thai law only one director can be a foreign national. A foreigner can hold a maximum of 49% of total registered shares, but the remaining 51% must only be held by Thai shareholders. In order for minority shareholder to control the company, foreign shareholder must issue preferred shares which enhance their voting power that can control of the company which in effect controls its properties.

Q.- 5. Registered Lease

A.- There are two kinds of lease, shot and long leases. Long lease exceeding 3 years must be registered at the Land Office. Most foreigners prefer to register long lease because it is less complicated than to establish a Thai company. By so doing, foreigners can have broad rights and control on properties. Lease can be registered up to 30 years for non-commercial use and extendable for another equal period. Lease for commercial or industrial use can be registered up to 50 years and extendable for another equal period.

Q.- 6. Holding right on properties.

A.- After registering Thai Limited Company, you will have Freehold on properties. If you register a Lease, you have Leasehold on your properties. When your lease is registered and extended for a long period, its leasehold entitlement clause will be considered equal to freehold terms

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Advance Inter Development Co., Ltd.
142/50-51 Moo 4, Lamai Beach, Ma-Led, Koh Samui, Suratthani, Thailand
Telephone / Fax: +66 (0) 7723-1625
Email: info@aid-properties.com