Buying a house in Thailand can be rewarding — great climate, attractive prices in many areas, and straightforward procedures when you know the steps — but it also exposes buyers to very specific local risks: title-class quirks, foreign-ownership limits, registration formalities, and lender practices that differ from many Western markets. This guide walks you, step-by-step, through what actually matters: title and survey work, who can own what, contract structure, financing, taxes and fees, closing mechanics at the Land Department, common negotiation points, typical timelines, and practical traps to avoid.
1) Decide what “buying a house” really means here
In Thailand “buying a house” can mean several things that materially affect rights and costs:
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Buying a condominium unit — foreigners may own a condo unit outright (fee simple) provided the condominium’s foreign quota is not exceeded and the unit is properly registered. This is often the easiest route for expatriates to own a home in Thailand.
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Buying a freehold house on land — possible for Thai nationals and Thai entities; foreigners are, with narrow exceptions, not permitted to hold freehold land in their personal name.
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Buying the house but leasing the land — common for foreigners: the house is owned by the buyer (or buyer’s company) while the land is held under a long-term lease (registered if over 3 years).
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Buying shares in a Thai company that owns the property — sometimes used but risky because regulators scrutinize nominee arrangements and creditors can still reach company assets.
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Superficies / usufruct structures — alternative real-rights arrangements where ownership of the improvement may be separated from ownership of the soil.
Pick your structure first because it determines due diligence, finance options, and what documents you need at closing.
2) Title classes — know the difference and why it matters
Thai land titles come in several forms. The most important are:
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Chanote (Nor Sor 4 Jor) — the strongest, survey-backed title with exact coordinates and the one banks prefer as mortgage collateral.
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Nor Sor 3 / Nor Sor 3 Gor / Sor Kor 1 — progressively weaker possessory or quasi-title documents; they carry conversion risk and higher transaction friction.
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Possession certificates — weakest for marketability; lenders generally won’t accept them without conversion plans.
Never accept a buyer’s printed copy alone. Always demand the original title deed and a certified Land Department extract. If the plot isn’t a chanote, plan for extra work, escrow protections and a larger indemnity from the seller.
3) Practical due diligence (not optional)
A robust due diligence package should include:
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Certified Land Department extract (latest).
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Licensed surveyor’s on-site tie report that matches the register to physical boundary markers and confirms area/encroachments.
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Chain of title review back to conversion (or at least 15–20 years) to spot short transfers or suspicious nominee arrangements.
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DLE and tax searches (Department of Legal Execution and local tax office) for execution orders or tax arrears.
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DBD corporate extracts and shareholder registers if a company owns the property.
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Planning and zoning checks, and confirmation of building permits.
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Copies of any existing leases, usufructs or mortgages and discharge deeds if listed as conditions to closing.
Get a Thai-lawyer’s written opinion summarizing these findings and listing unresolved risks before you release funds.
4) Contract fundamentals — LOI, SPA and conditional mechanics
Use a staged approach:
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Letter of Intent (LOI) or reservation agreement with a refundable (or conditional) deposit.
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Sale and Purchase Agreement (SPA) that converts the LOI into binding obligations. Important SPA clauses: title confirmation, who pays transfer taxes, mechanics to produce original deed at closing, escrow for the purchase price, seller reps & warranties (title, no undisclosed encumbrances), indemnity, dispute resolution, and express CPs (e.g., mortgage discharge receipts, certified survey).
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Conditions precedent are critical if title conversion, permit transfers or third-party consents are required.
Avoid putting unconditional, large deposits into a seller’s bank account — use an escrow agent or a lawyer trust account.
5) Financing — what to expect
Thai banks will lend to Thai nationals against chanote titles and, more cautiously, against condominiums and registered leaseholds. For foreigners:
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Condo mortgages are most straightforward.
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Land mortgages: foreign buyers generally cannot obtain a mortgage for land they cannot legally own; lenders may expect a Thai company structure, Thai guarantors, or collateral elsewhere.
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Lender requirements typically include a survey, registered security, corporate housekeeping for company sellers, and compliance checks.
If you plan to finance, get a conditional approval from a lender early so you structure the purchase accordingly.
6) Taxes, fees and transfer costs (who pays what)
Typical closing costs — confirm with your lawyer because rates change:
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Transfer fee: often 2% of the appraised value (government rate) — usually split or negotiated.
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Stamp duty or specific business tax (SBT): depends on whether the seller is a company and how long it has owned the asset; SBT may apply instead of stamp duty at the Land Office in sales by companies with rapid resale.
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Withholding tax: seller’s income tax based on document value or actual gain — usually the seller’s responsibility but negotiable.
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Legal fees and notary costs, surveyor fees, escrow fees.
Clarify allocation of these fees in the SPA and budget for them in addition to the purchase price.
7) Closing at the Land Department — procedure
At closing both parties (or their authorized attorneys with properly notarized powers of attorney) attend the local Land Office. Required items generally include:
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Original title deed and certified extracts.
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Signed SPA and transfer documents.
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Identification (ID card or passport) and any corporate resolutions / director certifications.
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Proof of tax clearances, mortgage discharge documents, and payment evidence (escrow release instructions).
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Payment of transfer and registration fees.
The Land Department will update the register and issue a transfer receipt; obtain an updated certified extract immediately — it’s your proof the title is registered in your name.
8) Post-closing practicalities
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Register utilities and municipal accounts in the new owner’s name.
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If financed, ensure mortgage registration is completed and the bank’s security is noted.
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For foreigners owning via lease/superficies or company, keep corporate minutes, renewal-option notices and tax filings up to date.
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Consider title insurance where available for added protection against hidden defects.
9) Timelines and what can slow you down
Simple condo transfers often finish within days once documents are in order. Land transactions with chanote titles commonly close in a few days to a couple of weeks. Non-chanote titles, conversion matters, discharge of encumbrances, or cross-border notarization/legalization add weeks or months. Factor in surveyor availability, Land Office workload, and embassy/legalization steps for foreign documents.
10) Common traps and how to avoid them
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Relying on scanned copies — always verify originals.
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Nominee-ownership schemes for foreigners — legally risky and often reversible.
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Unregistered long leases (over 3 years) — if not registered they are weak against third parties.
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Skipping a survey — boundary disputes are common.
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Buying without a lawyer’s local opinion — local practice matters and can change the economics of a deal.
Practical checklist (ready to use)
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Choose structure (condo vs house-on-land vs lease).
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Obtain certified Land Department extract and original deed.
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Commission a licensed surveyor’s tie-in.
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Run DLE, tax and corporate (DBD) searches.
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Negotiate LOI with escrowed deposit.
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Draft SPA with clear CPs, seller reps & indemnities and tax allocation.
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Seek conditional or full lender approval if financing.
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Close at Land Department with originals, pay transfer fees and obtain updated extract.
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Register utilities, insurance and, if applicable, mortgage.
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Keep original documents safe and store scanned certified copies.