Glossary: Real Estate Terms for Thailand & Pattaya

Anyone buying property in Pattaya quickly runs into a range of technical terms from Thai property and tax law. In this glossary I explain the most important terms, from Leasehold to the FET certificate, briefly and clearly. In-depth guides are linked throughout.

Ownership & Law

Freehold

True, indefinite full ownership of a condominium unit. Foreigners can own condos as Freehold as long as the 49% foreign ownership quota in the building is not exceeded. More on this.

Leasehold

A long-term lease right registered on the title, lasting a maximum of 30 years and often with contractual renewal options. This is the usual route for foreigners buying houses and land. More on this.

Chanote (Nor Sor 4 Jor)

The highest and most secure form of Thai land title, with precise GPS survey. A Chanote title offers the strongest legal protection when acquiring property.

Condominium Act

Thailand's condominium ownership law (B.E. 2522 / 1979), which governs ownership, the foreign quota, voting rights and the management of condominium units. More on this.

Foreign Quota

A maximum of 49% of the total floor area of a condo building may be held in foreign Freehold ownership. The remaining 51% stays in Thai ownership or is offered as Leasehold.

Juristic Person

The legally recognised owners' association of a condo, which manages the building, runs the budget and enforces the house rules, comparable to a homeowners' association. More on this.

Usufruct

A registered right of use over a property, usually for life. It is often used to protect the foreign spouse when the land is held in the Thai partner's name. More on this.

Superficies

The right to own a building on land belonging to someone else. It allows foreigners to own a house even when they are not permitted to own the land itself.

Nominee

A proxy shareholder who serves only as a placeholder in order to circumvent the ban on foreign land ownership. Such sham arrangements are illegal in Thailand. More on this.

Due Diligence

The careful legal review carried out before purchase by an independent lawyer: title of ownership, encumbrances, the developer's financial standing and the building's available foreign quota.

Title Deed

The umbrella term for Thai ownership documents covering land. The most secure title, and the one relevant to condo buyers, is the Chanote; alongside it exist legally weaker titles such as Nor Sor 3 Gor and Nor Sor 3.

Nor Sor 3 Gor (NS3G)

A confirmed title of possession with an aerial-photo-based survey that is not, however, GPS-precise. Land with NS3G can be transferred and mortgaged, but is legally weaker than a Chanote – careful review before purchase is advisable.

Nor Sor 3 (NS3)

An older proof of possession without precise survey; the boundaries are imprecise and sales must be publicly announced. It requires especially thorough due diligence and is practically never seen with condos.

Purchase & Finance

Off-Plan

Buying a unit before or during construction, usually at more favourable prices and with a payment plan staggered across the build period. More on this.

FET / FETF (Foreign Exchange Transaction Form)

The official bank record of the foreign currency transferred into Thailand. It is mandatory in order to register a condo unit as foreign Freehold and to be able to repatriate the capital later. More on this.

Sinking Fund

A one-off reserve contribution paid per square metre at the time of purchase, used for major maintenance and repairs of the common property. More on this.

Common Area Fee (CAM)

The ongoing service charge, calculated per square metre, for running and maintaining the shared facilities such as the pool, lobby, garden and security. In Pattaya this is typically around 40 Baht per square metre per month. More on this.

Sales and Purchase Agreement (SPA)

The binding purchase contract between buyer and seller or developer, setting out the price, payment plan, handover and obligations.

Reservation Agreement

The reservation agreement, made with a deposit, that holds a particular unit for the buyer until the main purchase contract is signed.

Land Office

The government authority where transfers of ownership, lease rights and other rights are entered into the land register. This is where the formal transfer of ownership takes place.

Transfer Fee

A fee of 2% of the official appraised value, payable on the transfer of ownership at the Land Office. It is usually split between buyer and seller. More on this.

Resale

The resale of an existing or completed unit on the secondary market, as opposed to a new-build or Off-Plan purchase. More on this.

Sea View vs. Sea Glimpse

"Sea View" means an unobstructed view of the sea, while "Sea Glimpse" means only a partial or side-on view of the sea. The price difference is considerable and should be checked on site.

Taxes, Residence & Letting

Double Taxation Agreement (DTA)

An agreement between your home country and Thailand that prevents the same income, such as rental income, from being fully taxed in both countries. More on this.

180-Day Rule

Anyone who spends 180 days or more in Thailand within a calendar year is considered a tax resident there. This is relevant for the taxation of income brought into the country. More on this.

Retirement Visa (Non-Immigrant O / O-A)

The residence permit for people aged 50 and over. It requires either 800,000 Baht held in a Thai bank account or a monthly income of 65,000 Baht. More on this.

Hotel Act

Thailand's hotel law classifies accommodation for stays under 30 days as a hotel operation requiring a licence. Renting out a condo unit by the day via Airbnb without a hotel licence is therefore illegal. More on this.

TM30

The statutory reporting requirement under which the host reports a foreigner's place of stay to the immigration authority.

90-Day Report

The obligation for holders of long-term visas to confirm their current address with immigration every 90 days.

Specific Business Tax (SBT)

A tax of 3.3% that applies when a property is sold within five years of acquisition. Where it applies, the stamp duty is waived.

Stamp Duty

A tax of 0.5% on the sale of a property. It is payable when no Specific Business Tax applies.

Withholding Tax

A tax withheld on the sale proceeds at the time of sale, the amount of which depends on the holding period and the official appraised value.

EEC (Eastern Economic Corridor)

Thailand's largest economic development zone, comprising the provinces of Chonburi, Rayong and Chachoengsao. It is an important long-term value driver for Pattaya. More on this.

Have a question about a term or about your purchase? Download my free Pattaya Property Guide or arrange a free initial consultation. You'll find all other topics in my advice blog.