The land allocation laws in Thailand are very important and many of the problems with property developments such as private villas tend to be because of the land allocation laws. Always do a due diligence before you place a deposit on the property especially if it is an offplan purchase. Speak to a property lawyer in Thailand for more information and assistance.
Land Allocation Law Thailand
It was at one point in time common practice when it came to land speculation to subdivide larger plots of land in Thailand into less than 10 plots. The reason for this is because once you have subdivided it into 10 or more plots of land you need to fall under the land allocation laws. With less than 10 you are not restricted by the land allocation act. What would be done next is to take a large plot of the 9 you just divided and then further subdivide the plot in 5 smaller plots with a different land owner name. This type of subdivision is not allowed in Thai law and places the Chanote you have under risk of being declared invalid. This is normally done to build where large property developments are not normally allowed.
Land Allocation Act B.E. 2543
In order to divide the land legally you will need to provide the following documents. If you or the developer has failed to subdivide the property correctly, then there will be legal problems later down the line as there has been no approval for roads, rainwater or sewerage. Without this the government cannot plan the sewerage and water properly giving rise to problems later.
- – Explanation of the project details;
- – Minutes of meeting for land allocation resolution
- – Your company documents
- – Your letter from Public Works and Town & Country Planning called ‘The inspection of use of land’
- – Sample of the agreement to sell (specified by Land Allocation Act)
- – Your license of garbage disposal issued by Local Authority
- – Your license of water draining system issued by Local Authority
- – Also your license of connection of the roads issued by Local Government
- – Your license of draining water to public river/canal
- – Also your licensed engineer details
- – Your receipt issued by Electricity Authority for setting up electricity system in the project
- – Your letter of permission to use water issued by the Provincial Waterworks Authority
These are some of the documents needed to divide the land in order to build a property development. You can now understand why there have always been issues with property developers in Thailand trying to circumvent the process. Doing the subdivision, the correct way is very costly as all the documents and licenses have to be correct in order to subdivide the land for the development.
Has your property been correctly and legally subdivided? You are only going to know this if a property lawyer in Thailand checks all of these before you transfer money into the country as a deposit for your property purchase.