"Foreigner quota"?

[DLButler]

In browsing condo listings I'm coming across a handful that boast "foreigner quota"....  Given the meaning of the term is likely self-explanatory, I'm wondering if it provides any specific benefits in purchase, etc.  Anyone have knowledge to share?

[SAFETY FIRST]

9 minutes ago, DLButler said:

foreigner quota

It means as a foreigner you can buy the condo and have the Chanote (title) in your name. 

 

'No foreign quota' you would have to set up a company or put it in Thai national name. 

 

 

[DLButler]

2 hours ago, SAFETY FIRST said:

It means as a foreigner you can buy the condo and have the Chanote (title) in your name. 

 

'No foreign quota' you would have to set up a company or put it in Thai national name. 

 

 

Interesting....  So all this time I thought I could buy any condo because I'm only buying the air space between the walls (the real estate definition of a condominium) and not any real property....  I came across this "Thai Embassy" site that looks like it's really a law firm's site that has a pretty good summary: https://www.thaiembassy.com/property/buying-a-condo-in-thailand

 

[AverageAussie]

You're right, but only about the definition of a condo. You are buying the "airspace" (as you call it) in a condo plus an interest in the common property of the building. That's distinct from the land that it sits on.

 

But if you scrolled down just 3 sections to "Process of Buying a Condo in Thailand" on this non-government/ private law firm website, they provide an explanation of foreign quota and how it applies. Put simply, each building has a max 49% quota (based on floor area) that can be foreign owned. If not in that quota, then your options are company name or a 3rd party Thai national - as pointed out by @SAFETY FIRST .

[scubascuba3]

Many people are daft enough to buy thai company instead, being illegal, ongoing costs and large closure costs make it a daft choice

[OneMoreFarang]

As far as I know there are only few condominiums where the foreign quota is a problem for foreign buyers.

It seems in most buildings that quota is never reached and therefore no problem.

 

And as far as I know this quota does not apply to individual units, like this is a unit from a Thai person and only a Thai person can buy it.

I bought a condominium from a Thai person. We checked with the building management that the foreign quota of the whole condominium was not reached, and that was all we had to do to confirm I could buy it. 

[scubascuba3]

22 minutes ago, OneMoreFarang said:

As far as I know there are only few condominiums where the foreign quota is a problem for foreign buyers

In Pattaya it's a problem, hence why people are always trying to sell Thai company junk

[newbee2022]

9 hours ago, SAFETY FIRST said:

No foreign quota' you would have to set up a company or put it in Thai national name. 

The authorities are just looking for those staged ownership. Congrats!🙏

[newnative]

     Buy in foreign quota, if possible.  The condo is in your name, not a company's, there's much less hassle with the purchase, there's no company accounting paperwork to deal with every year, and the condo will be easier to sell down the road should you choose to sell it at some point.

[MangoKorat]

5 hours ago, scubascuba3 said:

Many people are daft enough to buy thai company instead, being illegal, ongoing costs and large closure costs make it a daft choice

To say nothing of the fact that its illegal.

[Thomas72]

Thanks everyone for the clarification. I always thought "foreigner quota" meant the quota for foreign ownership had been met (no more foreigner purchases, need to find a unit from another foreigner if you want a unit in that building).

 

It is a bit unclear on first read.

 

What term is used in listings when no more foreigners can buy?

[donx]

16 minutes ago, Thomas72 said:

What term is used in listings when no more foreigners can buy?

There won't be a term used in listings in this case. Why would anyone advertising to foreigners willingly let them know they can't own it directly?

 

If you are interested in a specific condo or condo building, you need to check with the condo management what the percentage of foreign ownership is. If the seller is Thai, you need to research this yourself. If the seller is a Thai company, either research if it can be owned directly by you as a foreigner or walk away.

[CanadaSam]

Just to add, foreigner quota condo's are quite often pricier than thai owned ones.

[HampiK]

17 hours ago, DLButler said:

Interesting....  So all this time I thought I could buy any condo because I'm only buying the air space between the walls (the real estate definition of a condominium) and not any real property....  I came across this "Thai Embassy" site that looks like it's really a law firm's site that has a pretty good summary: https://www.thaiembassy.com/property/buying-a-condo-in-thailand

 

Actually, if you bought the condo, and it will be destroyed (for whatever reason) and they sell the land, you receive money according to your condo size. So you are also part owner of the land.

[DLButler]

11 hours ago, scubascuba3 said:

Many people are daft enough to buy thai company instead, being illegal, ongoing costs and large closure costs make it a daft choice

Interesting.  I see a LOT of listings saying it's owned by a Thai company.  So avoid these?

 

When you say illegal, are you referring to a foreigner buying a Thai-owned property/interest?

[donx]

3 hours ago, DLButler said:

Interesting.  I see a LOT of listings saying it's owned by a Thai company.  So avoid these?

 

When you say illegal, are you referring to a foreigner buying a Thai-owned property/interest?

He means the use of a Thai company to circumvent laws prohibiting foreign ownership is illegal.

 

He recommends only purchasing a condo that does not need to be owned by a Thai company. The condos owned by Thai companies most likely already had/have a 49% foreigner ownership.

[DLButler]

7 minutes ago, donx said:

He means the use of a Thai company to circumvent laws prohibiting foreign ownership is illegal.

 

He recommends only purchasing a condo that does not need to be owned by a Thai company. The condos owned by Thai companies most likely already had/have a 49% foreigner ownership.

Got it.  That is IMMENSELY helpful.  THANK YOU!

[soi3eddie]

15 hours ago, OneMoreFarang said:

And as far as I know this quota does not apply to individual units, like this is a unit from a Thai person and only a Thai person can buy it.

I bought a condominium from a Thai person. We checked with the building management that the foreign quota of the whole condominium was not reached, and that was all we had to do to confirm I could buy it. 

Same here. I was looking at a condo in Bangkok about 5 months ago. It was listed as "Thai Quota". Told the agent I wasn't interested. Then the juristic advised him that another condo in the building was being sold from a foreigner to a Thai meaning that "foreign quota" became available. I reckon that added 25% to the value of the condo I was looking at. Ultimately, I went on to buy elsewhere though.

 

[scubascuba3]

30 minutes ago, soi3eddie said:

Same here. I was looking at a condo in Bangkok about 5 months ago. It was listed as "Thai Quota". Told the agent I wasn't interested. Then the juristic advised him that another condo in the building was being sold from a foreigner to a Thai meaning that "foreign quota" became available. I reckon that added 25% to the value of the condo I was looking at. Ultimately, I went on to buy elsewhere though.

 

i bought from thai quota and transferred to foreign quota, people don't realise you can do that 

[Thomas72]

So "thai quota" is the term when a foreigner can no longer buy in a building (except from another foreigner)

 

9 hours ago, donx said:

There won't be a term used in listings in this case. Why would anyone advertising to foreigners willingly let them know they can't own it directly?

 

I don't read listings targeted at foreigners. They're just real estate listings - on Facebook and elsewhere. Usually written in Thai.

 

And yes, the price disparity between thai owned and foreigner owned property is quite apparent - another reason I have thus far chosen to rent.

[OneMoreFarang]

3 hours ago, soi3eddie said:

I reckon that added 25% to the value of the condo I was looking at.

Really?

 

[newnative]

      Just a clarification.  I've seen 'Thai quota' mentioned several times.   There is no 'Thai quota'.  Thais can have 100% ownership in a condo project.  There is ownership in Thai name, ownership in company name, and ownership in foreign quota, which is 49%.  As others have mentioned, it's best to check with the juristic to see how much of the foreign quota of a project is still available, and if that percentage available is enough to cover the size of the condo you are interested in.  

   

[newnative]

6 hours ago, scubascuba3 said:

i bought from thai quota and transferred to foreign quota, people don't realise you can do that 

Yes, you can transfer a condo in Thai name to foreign quota, but only if foreign quota is still available in the project.

[scubascuba3]

2 hours ago, newnative said:

Yes, you can transfer a condo in Thai name to foreign quota, but only if foreign quota is still available in the project.

You may not like it but people do refer to it as thai quota, i bought from thai company to foreign quota, so there's thai name, thai company and foreign quota, popular terms.

 

Buying from thai name is different from thai company 

[stratocaster]

There is an advert for a high end condo in Bangkok. As they state all foreign quota is sold out, but a 90 year lease agreement is still available for foreigners.

[Smokin Joe]

2 hours ago, stratocaster said:

There is an advert for a high end condo in Bangkok. As they state all foreign quota is sold out, but a 90 year lease agreement is still available for foreigners.

 

Maximum valid lease is 30 years. Putting an auto renew clause in the contract is just marketing BS, it can not be enforced. You would lose your property at the 30 year mark.

[DLButler]

On 3/29/2024 at 2:20 AM, scubascuba3 said:

You may not like it but people do refer to it as thai quota, i bought from thai company to foreign quota, so there's thai name, thai company and foreign quota, popular terms.

 

Buying from thai name is different from thai company 

Sheesh.....  This is all giving me a headache.  I just want to buy a condo.  Are there trustworthy agents or attorneys who can help me with the process and make sure my contract doesn't screw me?  I mean, it sounds like you've figured it out pretty well.  Did you get such help?  Or do these things just make more sense for you than they don't for me?  Is the condo you mention your first?  Or have you had more?  Lessons learned?  Anything you would advise a first-timer?

[scubascuba3]

9 hours ago, DLButler said:

Sheesh.....  This is all giving me a headache.  I just want to buy a condo.  Are there trustworthy agents or attorneys who can help me with the process and make sure my contract doesn't screw me?  I mean, it sounds like you've figured it out pretty well.  Did you get such help?  Or do these things just make more sense for you than they don't for me?  Is the condo you mention your first?  Or have you had more?  Lessons learned?  Anything you would advise a first-timer?

Read threads like this one, look in the forum real estate section above.  Buy in foreign quota and you avoid many potential issues. When you find a condo you like get the latest annual financial accounts and AGM minutes to spot any problems. It's more common not to use a lawyer as the process is simple, but you do need to understand what's going on and what checks to make

[Alidiver]

When you say "Buy" you are actually buying a 30 year lease.

[NativeBob]

18 hours ago, Smokin Joe said:

You would lose your property at the 30 year mark.

Very true. Pal lost his flat at Payathai area exactly that way. Nice room, about 75sq m