Back to: Definitions
Legal Term, Property Right
What is Real Estate Premises in Thailand?
Fact-checked by a REMAX Thailand Real Estate Expert
The Definition
In Thailand's property market, premises refers to the physical land, buildings, structures, or condominium units that form the subject of a real estate transaction, lease, or right such as superficies. It encompasses exclusive condo airspace and shared common areas, distinguishing the ownership of structures from the underlying land.
The Thai Legal Context
Governed by the Civil and Commercial Code, Condominium Act B.E. 1979, and Land Code Act B.E. 2497. In Thailand, land and structure ownership are strictly separated. While Thai citizens can own both outright, foreigners are restricted to condo units (49% quota) or rights like superficies and leaseholds over structures, not land. Failure to register premises rights at the Land Department can render them unenforceable, exposing foreign buyers to land disputes, unexpected transfer taxes, or eviction.
Benefits & Risks
Advantages
- Enables foreigners to legally own structures on leased land via inheritable superficies for up to 30 years.
- Clarifies boundaries in condo premises, protecting unit airspace while managing shared common areas efficiently.
Risks & Disadvantages
- Land-owner changes can terminate unregistered rights over premises, risking immediate eviction.
- Joint liability for common condo premises burdens owners with mandatory maintenance and sinking fund contributions.
Showcase: How It Works
Let’s look at a real-world scenario to understand how Real Estate Premises is applied during a property transaction.
The Scenario
- A foreign expat leases 1 rai of land in Phuket for 30 years and registers a superficies right.
- They build a THB 5M villa on the leased land (the premises).
- After 5 years, they sell the villa structure for THB 7M, while retaining the lease.
The Result
The seller pays a 2% transfer fee on the appraised value at the Land Department. The new buyer registers a new superficies to ensure structure ownership remains legally separate from the land.
Outcome:Seller nets THB 6.86M; Buyer legally secures structure ownership.
Frequently Asked Questions
Can foreigners own premises outright?
No, foreigners can only own condo units (up to a 49% building quota) or structures via superficies and leasehold agreements. The underlying land must remain Thai-owned.
What fees apply to transferring premises?
There is a 2% transfer fee on the appraised value, plus 0.5-1% stamp duty. These costs are typically split between the buyer and seller per their negotiation.
Does premises include fixtures like AC units?
Yes, if they are permanently affixed and become real property. Removable fittings typically stay with the tenant according to the lease agreement.
Related Terms
Why It Matters
Ignoring premises definitions exposes buyers to losing structures if land rights lapse. Sellers risk unenforceable contracts without clear premises registration, delaying deals and eroding profits.
💡 REMAX Pro Tip
Always demand a premises survey and Land Department title extract before signing. Pair with superficies for foreigners to lock in structure value securely.
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