Glossary
Thai property terms explained
The words you meet when buying a new development in Thailand, in plain English. Each term has a short definition here and a longer explanation of its own.
Apartment
Types of home
In Thailand, a home in a building that one owner holds as a whole and lets to tenants. An apartment is rented, not bought; a home you can buy in a multi-unit building is a condominium unit.
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Branded residence
Types of home
A home in a project that carries the name of a hotel or lifestyle brand and is serviced by its operator. The brand is licensed for a period, and the services are paid for through higher fees.
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Common area fee
Costs and income
The owners' regular payment for running the building: staff, cleaning, security, utilities for shared areas, insurance and upkeep. Charged per square metre per month, usually collected a year in advance.
Also called: Maintenance fee, CAM fee
Read the full explanationCondominium
Types of home
A building registered under Thailand's Condominium Act, in which each unit has its own title deed and the owners share the common property. The one kind of home a foreign buyer can own outright.
Also called: Condo
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Down payment
The buying process
The part of the price paid when the sale and purchase agreement is signed and during construction, before the balance at transfer. Commonly 10 to 30 percent at signing.
Also called: Contract payment, Deposit
Read the full explanationDuplex
Types of home
A condominium unit on two levels joined by an internal staircase, usually with living rooms below and bedrooms above. A loft is a smaller version with a mezzanine.
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EIA
Buildings, land and paperwork
The environmental approval a larger building must have before it can be built: in Thailand, a residential building with 80 units or more, or 4,000 square metres or more of usable area.
Also called: Environmental Impact Assessment
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FET form
The buying process
The Thai bank's certificate that foreign currency was brought into Thailand and converted to baht. A foreign buyer needs it, or a bank credit advice for smaller sums, to register a condominium unit freehold.
Also called: Foreign Exchange Transaction form, Tor Tor 3
Read the full explanationForeign quota
Ownership and rights
The share of a condominium building that foreign buyers may own freehold: at most 49 percent of the total floor area of all units. Counted building by building.
Also called: Foreign freehold quota, 49% quota
Read the full explanationFreehold
Ownership and rights
Full ownership with no end date, registered in your name on the title deed. For a foreign buyer in Thailand it is available for condominium units within the foreign quota, and for buildings, but not for land.
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Handover inspection
The buying process
The buyer's check of the finished unit before accepting it. Defects are listed in writing, repaired by the developer and checked again before transfer.
Also called: Snagging, Defect inspection
Read the full explanationHigh-rise
Types of home
A condominium tower: a building of 23 metres or more, which Thai rules class as a high building. More units and facilities, wider views, and stricter building requirements.
Read the full explanationHouse registration book
Buildings, land and paperwork
The local authority's register of an address and the people who live at it. Every home has one. It is not proof of ownership; the title deed is.
Also called: Tabien Baan
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Juristic person
Buildings, land and paperwork
The legal body made up of all the owners of a condominium. It runs the building: it collects the fees, employs the staff and enforces the regulations.
Also called: Condominium juristic person, Owners' association
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Leasehold
Ownership and rights
The right to use a property for a fixed period under a lease. In Thailand a lease can run for up to 30 years and must be registered at the Land Office if it is longer than three.
Read the full explanationLow-rise
Types of home
A condominium building of up to about eight storeys, below the height at which Thai building rules treat it as a high building. Fewer units, fewer lifts and usually a quieter setting.
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New development
The buying process
A project sold for the first time by its developer, whether it is still on paper, under construction or finished with units left to sell.
Also called: New build, Primary market
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Off-plan
The buying process
Buying a home before it is built or finished, from plans and a show unit, and paying for it in stages. Ownership transfers when the building is complete.
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Payment plan
The buying process
The schedule that divides the price into a reservation fee, a contract payment, instalments during construction and a balance at transfer. Each developer sets its own.
Also called: Instalment plan, Payment schedule
Read the full explanationPenthouse
Types of home
A large unit on the top floor or floors of a building, usually with a terrace and sometimes a private pool. In brochures the word is also used for the largest unit type on any upper floor.
Read the full explanationPre-launch
The buying process
The first round of sales in a project, before its official launch and often before construction has started. Prices are usually at their lowest and the project at its least certain.
Also called: Pre-sale, VIP sale
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Rai
Buildings, land and paperwork
The Thai unit of land area. One rai is 1,600 square metres, divided into four ngan or 400 square wah. Land prices are usually quoted per rai or per square wah.
Also called: Ngan, Square wah
Read the full explanationRental programme
Costs and income
An arrangement in which an operator lets your unit with others in the project and pays you a share of the income, or a fixed return the developer guarantees for some years.
Also called: Rental pool, Rental guarantee
Read the full explanationReservation fee
The buying process
A fixed sum paid to take a unit off the market for a short period while you review the contract. It counts toward the price if you go ahead.
Also called: Booking fee, Holding deposit
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Sale and purchase agreement
The buying process
The contract between buyer and developer. For condominium units Thai law prescribes a standard form, and terms less favourable to the buyer than the form cannot be enforced.
Also called: SPA, Sale contract
Read the full explanationSinking fund
Costs and income
A one-off contribution each first buyer pays at transfer into the building's reserve for major repairs and replacements. Charged per square metre and not returned when you sell.
Also called: Capital reserve fund
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Types of home
A condominium unit in which living, sleeping and cooking share one room, with a separate bathroom. The smallest and lowest-priced unit type in most projects.
Read the full explanationSuperficies
Ownership and rights
A registered right to own a building on land that belongs to someone else, for up to 30 years or for a lifetime. Used with a land lease when a foreign buyer owns a villa.
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Title deed
Ownership and rights
The Land Office's document of ownership. For land the full title is the Chanote; a condominium unit has its own unit title deed. Ownership changes only when the deed is updated at the Land Office.
Also called: Chanote, Nor Sor 4 Jor
Read the full explanationTransfer fee
Costs and income
The Land Office's fee for registering a change of ownership: 2 percent of the value it assesses for the property. Between a developer and a condominium buyer it is split equally.
Read the full explanationTransfer of ownership
The buying process
The registration of the sale at the Land Office, which is the moment the buyer becomes the owner. The balance, the fees and the taxes are paid the same day.
Also called: Transfer, Land Office registration
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Usufruct
Ownership and rights
A registered right to use a property and take its income, for up to 30 years or for the holder's lifetime. It ends when the holder dies and cannot be inherited.
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Villa
Types of home
A detached house on its own plot, in resort areas usually with a private pool. Because foreign nationals cannot own land in Thailand, a villa is bought through a structure, most often a lease of the land.
Also called: Pool villa, House
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