Thailand Property: How to check who owns a building?
December 24 2009 Categories: Property General Issues, Thailand Property one comment
In our previous post we explained that in Thailand (i) there are no specific documents providing evidence of building ownership, and (2) that it was possible to dissociate land ownership from building ownership. Therefore the question is how then do we establish who the owner of a building is?
The only way to clearly determine who the owner of a building is will be to do an administrative research (due diligence) to establish who the owner of a building is.
The building construction permit
The first document to check will be the building construction permit. Indeed in order to apply and obtain a building construction permit the applicant must first receive the written consent from the landowner. Furthermore, in the construction permit the grantor is referred to as the owner of the building. Therefore the construction permit is deemed a valid proof of ownership of a building.
At least it will be so in relation to the first owner of the building only. Therefore checking the building construction permit will not be sufficient and you will also have to check whether the building ownership has been transfered since its construction either together with the land or separately.
The Land Department file
Then, it will be necessary to review the file the Land Department kept in relation to the land on which the land is build.
Attached to the land title deed will be all the successive sale and purchase agreements related to the land.
If the current owner from which you are purchasing has purchased the ownership of the land along with the building, then a mention of the transfer of the ownership of the building will generally be made in the sale and purchase form executed by the parties at the Land Department.
Therefore, the first thing a buyer could do is to check the content of the sale and purchase agreement form attached to the title deed at the Land Department to clarify this issue. If the building existed at the time of the latest transaction and if the building ownership was transferred together with the land it will be mentioned in the land/house sale and purchase agreement.
If there was no building on the land at the time when it was last transferred to the current owner it will also be mentioned into the sale purchase agreement attached to the land.
Finally if the ownership of a building is transferred separately from the land it will also be mentioned into the land department file as the sale and purchase of a building or the registration of rights on a building needs to be published for 30 days in order to be valid.
Check also if there is a right of superficies registered on the land.
Pursuant to Section 1410 of the TCCC the right of superficies is: “The owner of a piece of land may create a right of superficies in favor of another person by giving the person the right to own, upon or under the land, buildings, structures or plantations.” In other words, the law grants the right to the beneficiary of a right of superficies to own any construction or structures built upon that land. If a right of superficies is registered on a land then it means that the owner of the land is not the owner of the building built on said land.
While the dispositions applicable to the lease agreement (to the contrary of the right of superficies) do not provide for the dissociation between the ownership of the land and the ownership of the buildings, lease agreements may also be used for the same purpose. You will however have to check the content of the lease agreement to determine whether the house built on the leased land is owned by the landlord or the tenant.
Note: This post is an excerpt of Rene Philippe Dubout first book: “How to Purchase Real Estate Offshore Safely: The Case of Thailand” published in february 2009. Second edition to be published in October 2009 under the title “How to Safely Purchase Real Estate in Thailand”
About the Author:
The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.
http//:www.renephilippe.com
© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact.
Originally posted 2009-09-22 04:23:34.
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- Thailand Property: Land Rights Classification: Major Claims
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“Bonjour Monsieur Dubout”
Should I write in English? Interesting to be addressing someone from Geneva where I spent 40 years as a teacher of English mainly, living in Eaux Vives, then in Meyrin. I am retired now and came to Chiangmai and , feeling a little better off, for cause cost of living bought some land in San Patong district and started building
I have read your texts the nominee I have , who looks to be unscrupulous,,has been to the Sub-District office issueing the building.permit and took one in her own name.
My question is: What would you advise as the surest step to recover ownership of a building she otherwise had absolutely nothing to do with?
.Best regards, and most grateful.
Charles Harrison