Planning to buy a condominium? Or acquiring a beach villa in Phuket or Samui? Or even building a house? Better consult an experienced English-speaking real estate lawyer prior to signing even a reservation agreement or paying a reservation fee. A property due diligence process is a wise step in Thailand, not only in the case of investing in off-plan projects.

The Thai real estate market is definitively more exciting than in most Western countries. In many locations, a highly attractive return on investment, you can only dream of at home, can be realistically achieved. On the other hand, there are more risks involved from the legal point of view. But with an experienced lawyer at your side you can acquire a place in paradise and avoid ending up in the mess of a failed investment.

Under the Condominium Act foreigners may buy a condominium if certain requirements are met. However, foreigners are not allowed to buy land with few exceptions. This leads to a situation where many service providers offer solutions to bypass the restrictions on foreign land acquisition, which from the standpoint of the experienced real estate practitioner are not always advisable, or might even be outright illegal.

Furthermore, developers and sellers of real estate cause confusion and mislead potential buyers when advertising dubious “freehold” and “leasehold” options. The hire of property under the Thai Civil and Commercial Code (which is often advertised as “leasehold”) does not confer any ownership rights or rights in rem. However, depending on the purpose, it might be the right option for you.

Advocates Moser & Partner has experience advising individuals and companies buying residential properties in Thailand and investors who invest in the attractive Thai property market, including a large institutional German investor who invested for the first time outside of the EU. We invite you to book a free first consultation with our experts if you are looking into options to own a property in Thailand.