Condominium Ownership Guide: Freehold or Leasehold? 

Are you thinking of buying a condominium in Thailand? If so, you need to know the difference between freehold and leasehold ownership. This is a crucial factor that affects your rights, security, and investment value. In this blog post, we’ll explain what freehold and leasehold mean, and how they affect you as a foreign buyer. ðŸ¢

What is Freehold Ownership?

Freehold ownership means that you own the property outright, including the land and the building. You have full rights to sell, rent, or transfer the property as you wish. You also have voting rights in the condominium juristic person (CJP), which is the legal entity that manages the common areas and facilities of the project. ðŸŒ

However, in Thailand, foreigners can only own 49% of the condo units in a project. This is known as the Foreign Quota. The remaining 51% of the units are for Thai nationals, and are called the Thai Quota. The Foreign Quota is based on the saleable area, not the exact number of units. For example, if there are 100 units in a project, all identical in size, non-Thai nationals can own 49 units as Foreign Freehold. But if there are different sizes of units, the Foreign Quota may be more or less than 49 units. 🔹

What is Leasehold Ownership?

Leasehold ownership means that you do not own the property, but you have a contract with the owner (lessor) that gives you the right to use the property for a certain period of time. You pay a lump sum upfront for the lease, and you may also pay a monthly or annual fee to the lessor. You do not have voting rights in the CJP, unless specified otherwise in the contract. ðŸ¢

In Thailand, foreigners can buy condo units as Leasehold when the Foreign Quota is filled. This is common in high-demand areas like Bangkok, Phuket, Pattaya, and Chiang Mai. The lease term is legally protected for 30 years, and some developers offer a 30-30-30 lease option, which means that they will renew the lease for another 30 years twice, for a total of 90 years. However, this option is not guaranteed by law, and it depends on the goodwill of the developer and the future laws and regulations. 🔹

Which One Should You Choose?

The answer depends on your personal preferences, budget, and goals. Generally speaking, freehold ownership is more desirable and valuable than leasehold ownership, because it gives you more rights and security. However, freehold units are usually more expensive than leasehold units, and they may be harder to find in popular locations. Leasehold ownership may be cheaper and easier to obtain, but it comes with more risks and limitations. 🔹

Here are some questions you should ask yourself before deciding:

• How long do you plan to stay in Thailand?
• How important is it for you to have voting rights in the CJP?
• How do you plan to use the property? For personal use or rental income?
• How do you plan to exit the investment? Sell or transfer?
• How much can you afford to spend on the property?

How Can We Help You?

At Siam Real Estate, we have over 20 years of experience in helping foreign buyers find their dream properties in Thailand. We can help you with all aspects of buying a condo unit, whether it’s freehold or leasehold. We can advise you on:

• The best locations and projects for your needs and budget
• The legal and tax implications of buying a condo unit
• The pros and cons of freehold and leasehold ownership
• The details and terms of the lease contract
• The registration and transfer process
• The property management and maintenance services

We are here to protect your investment and make your buying experience smooth and hassle-free. Contact us today and let us show you why we are the best real estate agency in Thailand. 🙌💼