Thai Land Ownership Laws

[Ctinaves]

Hi there,

I was wondering if anyone was familiar with thai real estate laws and what they entailed? My parents are Thai and bought land in the 80's in Bangkok but have been living in DC since then. My father's family has been living on the land since it was bought under a verbal agreement that they would move out once his mother passed away. My mother offered to let them buy it from her but they're still thinking about the offer. If my mother wanted to go ahead and sell it, would my father's family have a case against removal? I was thinking it might be possible since they've lived on the land for so long, but technically my mother owns the land and has the deed to it. I'm thinking most likely a Thai real estate lawyer will need to get involved but I just wanted to see if anyone had a quick overview of what the status on land ownership was.

Thanks!

[InterestedObserver]

You need a real estate lawyer. Basically if your father's family has been in possession of the land since the 80's they could conceivably claim squatters rights and file for ownership. Has your father's family been paying the land taxes all these years? If so, then they would have a strong case.

[Dag]

Even stronger as I understand it if the real owner as it seems in your case has done nothing with the land, nothing in writing re those on it and has not even visited the land themselves for more than 10 years.

Hope it is not in Sukhumvit and your fathers family have just become billionaires.

[OlafStapleton]

no rent no contract

after 10 year they own land

I think that Thai law.

[ballbreaker]

I am not sure if verbal agreements will stand up in court but the following is translation of Thai law for people allowed habitation.

HABITATION (arsai)

Section1402. A person who has been granted a right of habitation (arsai) in a building is entitled to occupy such building as a dwelling place without paying rent.

Section1403. A right of habitation may be created either for a period of time or for the life of the grantee.

If no time has been fixed, such right may be terminated at any time by giving reasonable notice to the grantee.

If it is granted for a period of time, the period may not exceed thirty years; if a longer period is stipulated, it shall be reduced to thirty years. The grant may be renewed for a period not exceeding thirty years from the time of renewal.

Section1404. The right of habitation is not transferable even by way of inheritance.

Section1405. Unless the right of habitation is expressly limited to be for the benefit of the grantee personally, the members of his family and his household may dwell with him.

Section1406. Unless expressly forbidden by the grantor, the grantee may take such natural fruits or products of the land as are necessary for the needs of his household.

Section1407. The grantor is not bound to maintain the property in a good state of repair.

The grantee cannot claim reimbursement of expenses made by him for improvements to the property.

Section1408. When the right of habitation comes to an end the grantee must return the property to the grantor.

Section1409. The provisions of this Code concerning Duties and Liabilities of the Hirer, as specified in Sections 552, 555, 558, 562 and 563 shall apply mutatis mutandis.

(above can be found at thailawonline.com)

[dave111223]

Has your father's family been paying the land taxes all these years? If so, then they would have a strong case.

What "land taxes" are you referring to? Wife owns land in her name but has never been asked or paid annual tax on it (only paid tax at the land office when purchasing the land)?

[InterestedObserver]

I am not sure if verbal agreements will stand up in court but the following is translation of Thai law for people allowed habitation.

To be legal beyond three years the right of habitation would need to be registered on the back of the Chanote.

[InterestedObserver]

Has your father's family been paying the land taxes all these years? If so, then they would have a strong case.

What "land taxes" are you referring to? Wife owns land in her name but has never been asked or paid annual tax on it (only paid tax at the land office when purchasing the land)?

"Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated."

The person paying the Land Tax establishes a prima facie case for possessing the land.

[dave111223]

"Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated."

The person paying the Land Tax establishes a prima facie case for possessing the land.

Can you please let me know where one can find the current tax rates and information on this? I'd hate to get a shock one day if a 10 year tax bill were to arrive.

[InterestedObserver]

"Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated."

The person paying the Land Tax establishes a prima facie case for possessing the land.

Can you please let me know where one can find the current tax rates and information on this? I'd hate to get a shock one day if a 10 year tax bill were to arrive.

Ask the local village headman, it varies around 0.5% of the assessed value, a few baht per Rai per year for primary residence land with agricultural land rates lower. Not talking about commercial or rental property. The government is in the process of changing the rates.

Edited July 28, 2011 by InterestedObserver

[trajan]

no rent no contract

after 10 year they own land

I think that Thai law.

no its not that simple....

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.

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CCC Section 1382: 10 Year Adverse Possession

"Where a person has, for an uninterrupted period of 10 years in case of an immovable (real property) ...peacefully and openly possessed a property belonging to another, with the intention to be its owner, he acquires ownership of it."

----------------------------------------------

If the owner allows you to stay on the property, then it is NOT adverse possession (with intentions of ownership by possession).....you do not automatically own the land just because you have been in possession for 10 years....you have to be in open possession of the property without permission of (or challenge from) the actual owner for 10 years....

your parents have expressly allowed possession by the relative....however your problem is one of evidence of such allowance....if the only evidence is a verbal agreement to allow them to use the property, then that would not be ideal proof....if you have witnesses to the verbal agreement that should help on the evidentiary point (but memories and people fade away) ....

[OlafStapleton]

If the owner allows you to stay on the property, then it is NOT adverse possession (with intentions of ownership by possession).....you do not automatically own the land just because you have been in possession for 10 years....you have to be in open possession of the property without permission of (or challenge from) the actual owner for 10 years....

No rent, no contract, I think you agree with me.

[donx]

"Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated."

The person paying the Land Tax establishes a prima facie case for possessing the land.

Can you please let me know where one can find the current tax rates and information on this? I'd hate to get a shock one day if a 10 year tax bill were to arrive.

Ask the local village headman, it varies around 0.5% of the assessed value, a few baht per Rai per year for primary residence land with agricultural land rates lower. Not talking about commercial or rental property. The government is in the process of changing the rates.

Before we visited Thailand this summer, my brother-in-law told us to bring our Chanote, go to the local government building for that Taboon(?), and pay the land tax that has accumulated since we bought the land in 2007. We go to the building and my wife shows them the Chanote. The land is 2.6 rai of beach front property without any building on it. They ask her if she grows anything on it. She says there are coconut trees on the property. They determine the land tax for the property based upon it being considered agricultural land. The tax is something like 14 baht and the fee for not paying on time is another 10 baht. (I may have these two values reversed). They made a copy of the Chanote and we gave it to my wife's cousin so that she can pay the tax on our behalf from now on.