Standard purchase process of Thailand, and obstacles that may rise:
Foreign freehold ownership of a condominium is allowed by Thai law. A condominium block may be of 49% of non-Thai ownership, if the developer has acquired the appropriate condominium license this can rise to 100%.
The overseas buyer has two possibilities of owning property in Thailand, these are the freehold or leasehold options. If a condominium is still within its 49% quota for foreign ownership, a freehold is available. The collective ownership of the individual condominium owners own the land on which a condominium is built, the majority beeing Thai shareholders. The corporate body, set up by the collective, governs the property.
Foreign buyers transfer the purchase funds in foreign currency from their bank (outside Thailand) to their Thai bank account. The Foreign Exchange Certificate, Thor Tor 3, is issued on receipt. This certificate is evidence that the account holder has sold or deposit the amount of money in foreign currency to an authorized local bank. All major banks in Thailand are authorized to issue a Thor Tor 3.
If a foreigner has permitted residence in Thailand under the Investment Promotion Act (IPA), a freehold to a condominium may also be purchased. The Board of Investment of Thailand issues permission to live in Thailand under the terms of the IPA. The foreigner is oblidged to present his/her passport and a certificate from the Board of Investment of Thailand as proof of entitlement.
If the quota of foreign ownership of the condominium has been fully subscribed the leasehold is an option. The effective lease period has a duration of 30 years, with 2 addtional renewal periods of each 30 years, adding up to 90 years in total.
