FAQ questions and answers about Hua Hin real estate
All questions were asked to us over and over again by customers. The answers have been compiled in cooperation with our lawyer and notary. And refer to the greater area of Cha Am, Hua Hin and Pranburi in particular and Thailand as a whole.
Question: Can a foreigner buy property in Hua Hin?
Answer: A foreigner can buy an apartment or a house in Hua Hin but not the land on which the property is located.
Question: How can a foreigner own land in Thailand?
Answer: Land can be legally leased by a foreigner for up to 30 years. This lease is recorded in the land deed at the land registry office. This lease can be sold or inherited at any time. Some lawyers offer optional extensions of 2 times 30 years each. Which however cannot be registered. As Thai law sets 30 years as the maximum duration.
Alternatively, a foreigner can register a life-long right of use on a Thai property. Which is also registered at the land registry in the property deed. However, this right of use cannot be inherited.
Question: Are there different plots of land as in Europe, with industrial, commercial and residential zones and can I build anywhere as I want or are there restrictions?
Answer: Yes, there are various restrictions in Thailand and also different land titles with different rights. Depending on the land title, the value can vary greatly.
Question: What is the 49% and 51% rule?
Answer: For an apartment building, 51% of the apartments must be sold to Thais or to companies. And only 49% of the apartments may be sold to foreigners.
Question: What are the fees for transferring a property in Hua Hin at the Land Registry Office?
Answer: The transfer fee is 3% and the stamp duty is 0.3%. If the property in Hua Hin has already been sold once in the last 5 years, there is also a 5% business tax. This tax has to be paid by the seller. The change of ownership and the stamp duty are usually split 50/50 between seller and buyer.
Question: What are the dangers of buying a house in a resort?
Answer: Most of the time, after the last house is sold, the construction company that builds the resort hands over the resort to a management company that then manages the resort and the quality of the services (security, pool, fitness, cleaning) decreases.
Question: Why should I always have a contract translated and reviewed by a lawyer?
Answer: Because the Thai and English contracts are not understandable for most people. And because even if the resort operator or the construction company of the apartment building always has its own interests in the foreground. And also the lawyers are usually paid by the seller and thus interprets the law in his favor.