Building Ownership in Thailand: Main Legal Considerations

Understanding Building Ownership in Thailand: Legal Options for Foreigners and Key Documentation 

Building ownership in Thailand offers unique legal complexities, particularly when separating land ownership from the structures built upon it. While Thai law generally assumes that the owner of a land plot is also the owner of the buildings situated on it, several legal mechanisms allow for the separation of ownership, making it possible for foreigners to own a house on leased land. This article explores the nuances of building ownership in Thailand, shedding light on key legal tools and administrative practices that govern such transactions. 

Separation of Land and House Ownership 

Under Thai law, ownership of a land plot and a house built on it can be distinct under certain conditions. This enables foreigners to own a house while leasing the land it occupies. If a house’s ownership is transferred separately from the land, the law requires a 30-day public notice period before the transfer can be registered, during which objections may be filed. Conversely, when land and house are sold together, no public notice is required. 

Despite the general assumption that landowners also own the structures on their land, this presumption can be disproved through specific legal documents and arrangements, including: 

1. Superficies

A superficies, as outlined in Sections 1410-1416 of the Thai Civil and Commercial Code (CCC), grants the right to own a house on land that the person does not own. This right must be registered on the land’s title deed, serving as legal evidence of the house ownership and protecting the holder’s rights against third parties. 

2. Building Permit

For the first owner of a house, the building permit is a key piece of evidence. This permit, issued with the landowner’s written consent, designates the grantee as the “owner” of the house being constructed. Courts and administrative bodies in Thailand recognize the permit as indicative of ownership, particularly when the house is built under a right such as a leasehold, even in the absence of a registered superficies. 

3. Official House Sale Agreement

For properties purchased from a developer, the official “House Sale Agreement” is a critical document. Issued by the land office, this agreement confirms the transfer of ownership to subsequent buyers and becomes a part of the official records. It provides robust and difficult-to-challenge evidence of house ownership, unlike the building permit, which is only relevant for the first owner. 

4. Construction Agreement

In cases where a house is constructed, a construction agreement may serve as additional evidence of ownership. This document outlines the contractual terms for building the house and can be used to establish the owner’s rights.

Misconceptions About the House Registration Book 

A common misunderstanding is that the house registration book (“Tabien Baan“) serves as proof of house ownership. In reality, this book—whether the blue book for Thai nationals and permanent residents or the yellow book for foreign nationals—merely lists the occupants of the property and its address. While it may indicate the owner’s name, it is not definitive evidence of ownership and is primarily used for administrative purposes, such as utility registration. 

Legal Due Diligence: A Crucial Step 

Given the complexities surrounding house ownership in Thailand, conducting thorough legal due diligence is highly recommended when acquiring property. This includes verifying documentation such as superficies registration, building permits, sale agreements, and construction contracts. Ensuring that house ownership is properly documented is essential to avoid disputes or legal challenges in the future. 

Considering Buying or Building in Thailand?

Our legal team can guide you through every step of the process—from verifying ownership documents to ensuring a smooth property transaction.

Contact FRANK Legal & Tax today for clear, reliable advice on your property purchase or construction project in Thailand.