Mortgages A mortgage may be granted by an owner in favor of a person, bank or financial institution, to secure the performance of any obligation. Although no specific law restricts the right of foreigners to be granted mortgages, the Land Department usually does not allow a mortgage to be granted in favor of foreign individuals, as it deems that such mortgages may be a device for the foreigner to exercise de facto ownership of the land. Foreign banks, however, may take mortgages over land.

For residents of Thailand , only individuals and licensed banks and finance companies can be granted mortgages, where the mortgage finances the construction or purchase of the immovable property. Although no law expressly prohibits a mortgage to a foreigner to finance purchase of land, as a matter of business practice, such mortgages are rarely if ever granted. However, this practice may be subject to change in the future depending on factors such as the real estate market in Bangkok or other areas attractive to foreigners or the general economic climate in Thailand.

Separability of land and buildings It is common in Thailand for buildings to be owned separately from the land. Since there are no nationality restrictions on owning buildings, it is common for foreigners to own buildings and to lease the land on which the buildings are constructed.

Transfer Ownership of buildings may be transferred at the Land Department or Amphur at the same time that the ownership of the land covered by a Title Deed or Confirmed Certificate of Use is transferred. Otherwise, ownership may be transferred at the Amphur only after notice of the proposed transfer has been posted and 30 days have elapsed without any objection. Apartments may be leased in the same manner as buildings, but cannot be owned separately from the whole building.

 

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