10 Pieces of Good Advice when Buying Property in Thailand

We collected 10 pieces of good advice for you to keep in mind if you are considering buying property in Thailand. These will help you to avoid a large range of pitsfalls. The advising is based on more than 15 years of experience in real estate trading in Thailand.

It may seem a little confusing to keep track of all the rules when buying property in Thailand. But if you are buying a house through our experienced sales agents you can lean back and feel totally safe. Let us handle all the challanges during the sales process and help you avoid all the pitfalls.


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1. Location

An old adage says that three things are a must when buying property. That is location, location and location. Talay Tara is located 30 minutes from Hua Hin, 20 minutes fra Pranburi and 1 mile from Sam Roi Yot National Park.

The area around Talay Tara is being developed rapidly, because a lot of people are drawn by being in the middle of unspoiled nature and at the same time close to the city.

2. ”Fortune riders” and ”Champagne sales”

Beware of sales agents who want to generate sales asap. Take all the time you need and do not allow yourself to be pressured into buying – there will always be plenty of other houses for sale

At Talay Tara we will never force you to buy anything. You are always welcome to contact us for a non-committal talk or showing.

3. Check the housing provider

Always check the housing provider before buying a house: Is the economy and the company behind the housing project strong and robust? Ask if you can get any information about the registred capital of the company. Also remember to get personal information on the people behind the housing project.

4. What does other people think?

Make contact to other people who purchased a house though the housing provider. It is very important to hear other people´s experiences. Are they satisfied with their investment and pleased to be homeowners in the current housing project?

At Talay Tara we have collected a series of testimonials from buyers, who tell about their experiences.

Read buyers’ testimonials

5. Peaking foundation?

Make sure that the house is built on “peaking” foundation – that is above level compared to the nearest public road. In Thailand the rainy season goes from June to late October.

When the rain comes it may come in very large quantities and therefore it is very important to drain it off very quickly and this goes by the public roads. For the same reason Thai people for generations built houses on poles. If your house is not built on peaking foundation it may cause you a lot of serious problems and at worse your house may become unusable.

6. Check the scale

Land is very expensive in Thailand and that is why many housing providers utilize the land to the utmost in order to accommodate as many houses as possible.

If your house is not yet built or if it is not possible for you to check the house yourself, then do obtain a summary plan that fits the scale. This plan enables you to assess the rate of utilization and it gives you an impression of how close your house will be placed to the neighboring houses and other items nearby.

7. Check the house yourself

The appearance of the house and the location is essential of how you will be feeling in your new holiday home. Do not be misled by beautiful professional processed photography and long sales talk. If you want to be absolutely sure to have your dreams fulfilled do take time to travel to Thailand and check the house yourself.

We will be glad to show you the houses at Talay Tara – contact us for a non-committal talk or showing.

8. Get agreements in writing

As always it is very important not to settle with a verbal agreement: Have all agreements written down on paper! To make the agreements as strong as possible in Thailand you must have them translated and written into English language.
Get help from a professional translator specializing in law documentation to make sure the contract is made properly.

It is very important that you understand everything in the purchase agreement. Do ask if you have any doubts or if you are feeling confused about something. Only sign when you feel ready and know exactly what all the documents say.

9. Check the house deed

There are several ways to buy land in Thailand and some are safer than others. In this context it is very important to pay close attention to the deed that comes with the house.
We recommend that you purchase or lease a house or land with a red deed (named Chanote deeds) because this gives you the best possible guarantee.

Red deed
“Chanote” or “Nor Sor 4 Jor”
The best deeds are deeds with a red logo, also named Chanote deeds. Red deeds can be traded, mortgaged and developed. They are measured precisely by GPS and will be marked with small cement stilts on the ground with private numbers. This is made by the country office and there will be no doubt as to where your property´s boundary is located. Prescriptive rights on red deeds last 10 years.

Green “deed”
“Nor Sor 3” or “Nor Sor 3 Gor”
Deeds with a green logo are actually not a real deed. A green “deed” costs only 30-50% of the price of a red deed (Chanote), and rules are not as strightly as on red deeds (Chanote). Green deeds differs by being measured less accurately. They are not surveyed by GPS, only by aerial photographs and by comparison with neighboring land. Therefore you may overlap with the neighboring property and you cannot keep an original deed (Chanote) on the land which you have holdleased.

This means you can not control if the owner of the land is mortgaging the land to other persons, which may cause you problems. Prescriptive rights for green “deeds” only last 1 year.

No deed
Some houses are sold without a deed and only with trade papers. Do avoid buying a house with no deed! Without a deed the land cannot be traded, mortgaged or developed. In reality you are buying land which you are able to use but you cannot resell it. This may cause you many problems and at worst you may lose the land which you have leased.

10. Leasehold and contract

As a foreigner you cannot own land in Thailand. But you are allowed to own the buildings that are on the land. Instead you lease the land with a 30 year lease contract which must be registered at the land office. This lease will be applied to the deed, which means officially you own the land the next 30 years with an option of getting an extra 30 years of leasing – that is a 2 x 30 years lease. The leasing contract may be transmitted to your relatives, who may get another 30 years lease.

Be aware that the leasehold contract is executed correctly! Among other things, make sure to secure the right of inheritance. Get the contract checked by a qualified Thai lawyer. Be aware that in Thailand it is legal to call yourself a lawyer without proper authorization. Therefore always check if the lawyer has a legal license.

Please also note that the lease contract is automatically renewed if it is resold with the same conditions as the old contract and that you don´t have to pay a lot for a new leasehold contract. This is very important for maintaining the value of the property in Thailand.

To make sure the land is divided properly you have to have a red deed (Chanote) the day the leasehold begins. This also helps you to make sure that the landlord cannot mortgage the deed once your house is built.


    Need more information?

    • If you have questions or need further information, feel free to contact us for a non-committal talk or showing.
    • Contact

      Warren Crowe, sales agent

      0066 (0) 812 704 291

      sales@talaytara.com

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