(Newswire.net — March 26, 2020) — Your Choices in Buying Land for Sale in Bangkok
The choices you have in investing in land for sale in Bangkok can vary depending on whether you are a Thai individual or commercial business. Foreigners are prohibited by law from owning land in Thailand, although they can own residential condominiums and they can rent both condos and residential homes.
Businesses that have a majority of Thai ownership can buy land for sale in Bangkok. But they need to look carefully at how the land is categorised by the government to decide whether or not it would be wise to invest in the specific parcel of land.
Categories of Land in Bangkok
There are four categories of land title deeds in Bangkok. Each of them has definitions that determine the benefits or drawbacks of investment in the properties.
That best type of land for sale in Bangkok is one that offers a freehold title deed, called a Nor Sor 4, or Chanote. It provides the title-holder with the full rights to the property.
Nor Sor 3 Gor is the second-best type of land to buy. This is land that has been measured by the Land Department but is waiting for a Chanote title deed to be issued. With a Nor Sor 3 title deed, the land has not been measured, and the boundaries of the land have not been finalised. The least attractive type of title deed is the possessory title deed. This means that that the property has not yet been validated by the Land Department and is only recognised because of tax payments that have been made to the Local Administrative Office.
Strata title ownership is common in residential developments and is the only type of ownership allowed to foreigners. It grants the buyer ownership of a unit within a development, but not the actual land the development occupies. It’s the ownership title of most of the condos sold in Bangkok.
Zoning Plays a Large Part in Land Sales
Developers in Thailand must comply with the zoning restrictions in an area, which can include plot ratio, site coverage, building heights, and environmental impact assessments. These zoning regulations allow local governments to designate areas for certain types of land use in each province.
Bangkok zoning regulations are reassessed every 5-7 years. It’s essential to understand the zoning regulations before you consider buying a property.
Most residential buyers will not run into any difficulties if they purchase a home in an established residential development or older community. But for commercial or industrial purposes, the interested buyer should investigate the zoning regulations thoroughly.
Land Sale System in Thailand
Every land purchase or lease of more than three years must be registered with the Land Department. Land sales between private parties are the most common land transactions. But Thai citizens can also acquire land through the lease of state of private land.
But when investing in any land for sale in Bangkok, it’s best to hire a qualified real estate representative to handle the deal for you. This way, you’ll be confident that the agreement has no hidden issues such as preventative zoning regulations, and is a deal you are prepared to accept.