BUYER'S GUIDE
You felt in love with Koh Samui and you are seduced by the idea in investing on the island.
Here is some useful information to assist you in the process of purchasing your property.
Land titles
In Thailand, the land Department issue different land title deed type suitable for building a property, sud-divise or selling without any legal issues, which are Chanote or Nor Sor 4, Nor Sor 3 Gor or Nor Sor 3.
The chanote title, is a document to certify true land ownership. This is the only document the country’s Land Department deems as a real land-ownership deed. Land with chanote titles are surveyed, GPS plotted, and marked by posts set in the ground according to a national survey grid. There is no requirement for a land sale to be published, and owners can subdivide the land to their desire.
Nor Sor 3 Gor titles are not actually full ownership deeds though the name on these titles is the person who has the right to the land and legal rights to have ownership of the land. These deeds are accurately surveyed by aerial survey, can be updated to full Chanote titles and can be sub-divided.
Nor Sor 3 land should be avoided as the land is not accurately surveyed and borders of land can only be confirmed by surrounding land plots.
Ownership
Under Thai law, foreigners are not allowed to own a land directly in their name.
Here are the 3 common ways to purchase a land in Thailand.
When purchasing a property in Koh Samui one of the way to own the land is to set up a Thai Limited company and use it as a vehicle to own the land.
The company is majorly Thai owned and as a foreigner you are allowed to own 49% of the shares and need 2 Thai associates.
Our legal team can share with you their advice and recommendations in order to make sure your investment is secure while the structure of the company remains in compliance with the Thai Law.
Another alternative is to sign a long term lease contract on the land. The initial duration of the lease is for a period of 30 years, which can be renewed up to 2 times for a total duration of 90 years. For this option, our legal team can also assist you and give you their recommendations in order to avoid any legal conflict.
And finally, the last option and only way for a foreigner to buy a property in its own name is the free hold condominium option.
In this case, the foreigner buys a condominium from a project but the project must be 51% Thai owned.
chose the right property
When searching for your perfect property to buy on Koh Samui, the most important decision to initially make is the substance of the property you are looking for rather than style.
Substance refers to aspects of the property that cannot be changed once purchased such as location, views and other aspects such as number of floors, and floor plans.
The style represents easily changed surface finishes like floor tiles, paint colours, and window coverings. Focus on good substance, because the style can always be changed to match your tastes.
Our team will be there to assist you defining what your ideal property is and, once we have a clear understanding of your needs, we will prepare a selection of properties and organize viewings.
purchase process
Once you have found your dream property, we assist you in making an offer to the seller. The seller can accept the offer as is, or make a counteroffer with adjustments to the terms. We are involved in all negotiations to ensure a smooth transaction. Once both parties have agreed and signed the deposit contract, you will be required to deposit 10-20% of the purchase value. This process is usually done with the help of a lawyer who will manage the escrow. Our team can assist you and recommend you lawyers. Once the deposit has been paid, the lawyer will perform the due diligence to make sure you are buying a property which is a sound investment. After the lawyer has finished the due diligence and the sale and purchase agreement is signed, it is time to for the legal team to register the sale and the change of owner at the Land Department. Once the registration is approved, the balance of the land can be paid. Another way to transfer the ownership of the property is by simply take over the Thai Limited Company who owns the property. In this case, the owner of the property remains the same, the Thai Limited company, and the structure of the company gets changed. The process of closing the sales generally take 30 to 60 days. Congratulations you are now the new owner of your property.