In Thailand, there are 2 types of real estate registration: Freehold and Leasehold.
Freehold is a 100% property right that allows you to own, use and dispose of real estate. The owner has the right to transfer the property as an inheritance, donate or sell.
The rights to real estate are confirmed by a special document called Chanot (an analogue of the Russian certificate of ownership), which indicates the name and surname of the owner. This document is presented in two copies: one is issued to the owner in the hands, the second is stored in the Land Department - a state agency that has the right to register real estate transactions.
The right of ownership is enshrined at the legislative level. Clause 19 of the Condominiums Act of 1979 states: “Any foreign citizen has the right to take ownership of an apartment.”
In turn, Freehold can be divided into 2 types: for foreigners and Thai companies and individuals. A foreigner has the opportunity to register real estate in both ways. In the first case, the name and surname of the buyer will be indicated in the Chanot. In the second case, the name of the company is indicated, the owner and CEO of which is a foreigner. You need to understand that the company must be opened in Thailand. If you purchase an apartment or house from a developer at the construction stage (in the primary market), then he takes over the procedure for opening your company. If the transaction is made on the secondary market, then, as a rule, the company is transferred to the new owner along with the property.
Leasehold is a long term lease. This method of registration of real estate is not property, as it does not imply the right to dispose of it.
When registering an apartment or house in Leasehold, you have the right to use and own it under the lease agreement. The developer company legally remains the owner of the property.
The lease agreement is drawn up for a period of not more than 30 years and is recorded in the Land Department of Thailand. After this period, an extension is required with the participation and consent of both parties.
The buyer of real estate registered in Leasehold is not protected by law, and has the right to act limited by the contract. For example, you do not have the right to vote at general meetings of condominium co-owners.
This method of acquisition is interesting if the developer offers to participate in the guaranteed income program with the subsequent repurchase of your property. Since the buyer does not need to register the apartment and pay the state fee. This allows you to minimize costs and increase the amount of profitability from the object.
Conclusion: A foreigner has the right to register real estate in Thailand as a property - Freehold. This right is enshrined at the legislative level and supported by a legal document - Chanot.
There is another type of registration - Leasehold or long-term lease, which is not a property, but is interesting for investment purposes, in particular for buyback programs.
