SECTION 8: The Importance of Sound Legal Advice for Foreigners when Buying Property in Phuket

2025-08-12T15:07:42+07:00

SECTION 8: THE IMPORTANCE OF SOUND LEGAL ADVICE FOR FOREIGNERS WHEN BUYING PROPERTY IN PHUKET

Understanding Phuket Property Laws: The Facts Every Buyer Must Know About Getting the Best Phuket Property Legal Advice!

Getting the best Phuket property legal advice is not just advisable, it is essential. Anyone purchasing real estate in Phuket must ensure their transaction fully complies with Thai law. While many regulations are similar to those in Western countries, there is one critical difference: foreigners are prohibited from owning land.

This restriction applies to any property tied directly to land ownership, including villas, estate houses, shophouses, and townhouses. A foreigner can legally own the building itself but not the land beneath it. In most cases, this means the home is purchased while the land is leased for a fixed term. There are some properties specifically structured for foreign freehold ownership, but these remain relatively rare. Only under very limited and exceptional circumstances can a foreign buyer purchase land outright, and these situations are explained later in this guide.

This principle is rooted in Thai culture, which places strong importance on keeping Thailand, and Phuket, first and foremost for Thai people. Phuket property law reflects this cultural priority, safeguarding land ownership for Thai nationals.

Like in many countries, land laws are shaped by cultural identity, and successive governments have maintained this protection regardless of how many foreigners live here.

Over the years, there have been many rumours about changes to foreign land ownership laws, but no concrete evidence suggests these laws will change. While most non-Thai buyers would welcome more relaxed regulations, the reality is that Thai law offers no simple or direct path to freehold land ownership for foreigners.

This can be an inconvenient truth for the many villa developments marketed to foreign buyers as “freehold” properties. Some developers and agents encourage buyers to use a Thai company structure to acquire land, but in many cases these are simply holding companies with nominee shareholders, arrangements that may not stand up to legal scrutiny if challenged.

It is possible to use a Thai company that operates as a genuine, tax-paying business. However, foreign buyers should be cautious about relying on other supposed “loopholes”, technical legal workarounds with little or no recent precedent, which could fail under a legal challenge.

Thai courts have already struck down a number of these so-called foreign ownership arrangements, sometimes very recently. Anyone considering Phuket property deserves clear and honest explanations about why certain structures may not be as secure as they seem.

When it comes to landed property, leasehold contracts remain the most straightforward legal route for long-term use. However, leaseholds carry their own risks, as the maximum term allowed by law is only 30 years. If agreements are poorly drafted, or if a developer’s circumstances change, problems can arise. That said, when structured correctly with all legal protections in place, and when dealing with reputable developers, a leasehold can still be a sound investment.

Ultimately, any attempt to bypass Thai land laws, either in letter or in spirit, carries significant risk. But for foreigners wishing to live in Phuket, there are still legitimate ways to secure long-term residency in a property, without owning the land, provided they follow the law and obtain the right Phuket property legal advice from the outset.

Owning and Leasing Property in Thailand

Phuket Property Legal Advice: The Letter of the Law vs. The Spirit of the Law

Have you ever heard the expression “the spirit of the law” and wondered what it means?

If you’ve watched an American courtroom drama, you’ve likely seen criminals go free because of technicalities or loopholes. Clever lawyers exploit these gaps in the letter of the law, and judges are often bound to agree, even if it goes against common sense. In the United States, finding ways around the law has become almost as much a cultural hallmark as baseball and apple pie.

Every culture shapes its own legal system, and the law becomes as ingrained in society as its traditions and rituals. In Phuket, and throughout Thailand, cultural values are central to the spirit of the law. This means judges may uphold the underlying cultural intent of legislation just as firmly as they apply the written statutes.

For anyone seeking Phuket property legal advice, understanding both the letter and the spirit of Thai law is essential. While loopholes might appear tempting, the courts can and do enforce the cultural principles behind the law, which may override purely technical interpretations.

Whereas in some countries discrepancies in the law can create exploitable loopholes, in a Phuket courtroom judges are fully aware of the lawmaker’s intent, and they are prepared to rule on that intent. When it comes to property, the intended meaning is clear: foreigners are not permitted to own land or permanently hold landed property such as a villa. This may not be the exact wording of every statute, but the cultural link between Thai land and national identity is recognised by every judge in every court.

Thai judges are empowered to base rulings on the spirit of the law, and in matters of foreign land ownership in Phuket, that spirit will always take precedence over the letter of the law. No foreign buyer should be under the illusion that a perceived loophole, or even the most skilfully prepared legal defence, will secure their claim to physical land. Obtaining reliable Phuket property legal advice before entering into any such arrangement is essential to avoid serious legal and financial consequences.

Finding a Good Lawyer in Phuket

This cannot be stressed enough, the very first step in any Phuket property transaction should be to hire a skilled, trustworthy lawyer.

And “first step” truly means first. If you are even considering a real estate investment in Phuket, you should secure legal representation before you start viewing properties. But what exactly makes a good lawyer?

It’s not only about their knowledge of Thai property law, but also their ability to explain it clearly in your own language. Many reputable lawyers in Phuket are fluent in both Thai and English. If you require another language, the larger firms are more likely to have that capability, although these are often the more expensive options.

For professionals and busy individuals, time is precious. If you’re travelling to Phuket specifically to find your ideal property, every hour counts. Without the right legal guidance, you risk wasting valuable time viewing properties that cannot offer the ownership structure you need. Reliable Phuket property legal advice will protect your interests, save you time, and ultimately help you avoid costly mistakes.

You can read more in our article here on why Phuket buyers should ALWAYS use an experienced Phuket lawyer:  

The Importance of Sound Legal Advice When Buying Real Estate in Phuket

real estate investment in Thailand

WHAT OLAF SAYS ABOUT FINDING THE RIGHT LAWYER

Here Olaf Duensing of Duensing Kippen explains what buyers should be looking for in their legal counsel and why only the best Phuket Property Legal Advice is essential:
Real estate in Thailand can, for the most part, be a very good investment. Sadly, we have encountered horror stories, and they are not as rare as one might hope. If you are thinking of taking this investment plunge, here are a few tips.

When making a real estate investment in Thailand, one of the best ways you can protect yourself is by hiring a competent lawyer. This is imperative, and you should obtain the right legal counsel right at the beginning of the process (i.e. prior to signing any agent’s or seller’s agreement).

The key word here really is “competent”. We often find ourselves dumbfounded when people relate to us what law firms in Thailand have told them. Thailand has a well-developed system of laws, which are in many respects quite similar to laws in the West. For the most part, as in the majority of fully developed nations, the laws in Thailand logically fit together. Furthermore, something which is very convenient for foreigners in Thailand, the English translations of most relevant laws are readily available.

So if something you are hearing from another Thai law firm is seemingly illogical and makes no sense, there is every chance that your skepticism is warranted. If you are uncertain, request a copy of the law so that you may read it yourself. If, with a translation of the law on the table, they are still incapable of explaining their point – or worse yet, if they actually refuse to offer a greater understanding – it would advisable to seek out new legal counsel to help you.

But there is more to “competent” Phuket property legal advice, than just knowledge of the law – competent legal advisor will also be ethical. That is to say, they will be compliant with recognised international standards which all lawyers should follow. Every law firm has a fiduciary duty to its clients, meaning your interests are put ahead of those of both the individual lawyer and the firm. This includes putting your financial interests ahead of their own, and ensuring that the firm never has a conflict of interest when it comes to representing you.

That is why your legal representatives should never refer you to real estate developers or agents, and they should certainly not accept commissions from such parties. Your lawyers should never represent both sides in any transaction because to do so is a conflict of interests. You should be able to reasonably expect that the firm will never advance any interest which is detrimental to your interests.

It is simple enough to evaluate any prospective counsel. For starters, ask to see their legal credentials. Then enquire as to their professional code of ethics. Ask to see both, and verify their legal credentials before reading through their code of ethics. If they can’t produce one or the other, or if you are just uncomfortable with their response to your query, then you would be well advised to seek new legal counsel. It is always imperative to get the best Phuket property legal advice.

As a final point, you should not assume that Thai government officials will provide you with simple or accurate legal advice. While they may be responsible for administering the law, they are not necessarily well-versed in the law’s intricacies.

Doing the Necessary Due Diligence When Buying Property in Phuket

It is east to see why some people ignore getting the best Phuket property legal advice. Someone new to Thailand is often enchanted by the “Land of Smiles”. After all, what could possibly go wrong in a country full of friendly, welcoming people?

Unfortunately, problems can arise, just as they do anywhere in the world. That’s why every property buyer must understand the importance of due diligence and ensure it is carried out thoroughly. The goal is to confirm the property is a sound investment and the seller is legitimate and reputable.

Consider this: stock market investors often spend hours analysing financial reports before investing just a few hundred dollars, pounds, or euros. Yet some of those same people neglect to take similar precautions when spending millions of baht in Phuket.

This is where the right lawyer is invaluable. If you’re buying from a developer, especially off-plan, it is essential to check that the land’s title deed is in the name of the development’s legal corporate entity, not an individual, and certainly not an unrelated third party. If the title belongs to a third party, they retain the legal right to sell the land at any time, even after you’ve paid a deposit, instalments, or the full purchase price. Should that third party pass away, the fate of your investment rests with their heirs.

A developer’s representative might assure you that this arrangement is temporary and that the land will be transferred to the company when construction finishes. But if the current owner chooses to sell, or uses the land as collateral for a loan or mortgage, your investment could be at risk. If the land becomes encumbered and the loan is foreclosed upon, or if property taxes go unpaid, the revenue department could claim what you thought was your property. This caution applies to all types of property, not just condominiums. In a condo development, hundreds of buyers could be affected by a single title issue.

For condominium purchases, especially off-plan, always request a copy of the full Chanote title for the entire development, not just a portion tied to your unit. The full title reveals any existing mortgages, loans, or liens on the property. Individual title deeds are only issued once construction is complete, which is why resale units or nearly finished developments can offer more security for foreign investors.

Sound Phuket property legal advice ensures this level of due diligence is not overlooked, giving you the clarity and confidence to invest wisely. In the next section, we’ll look to Olaf Duensing for further insights into what proper due diligence involves.

You can read our additional article here on the necessity of conducting due diligence when buying Phuket property: 

Carrying Out the Necessary Due Diligence When Buying Real Estate in Phuket

WHAT OLAF SAYS ABOUT DUE DILIGENCE WHEN SEEKING PHUKET PROPERTY LEGAL ADVICE

Due diligence basically means doing your homework, which is identifying any potential legal issues which could adversely affect the purchase of the property you would like to buy. The reason this is so critical is that you are not only acquiring a property, but you are also assuming any legal liabilities which may be attached to it. Due diligence is essential no matter where you are buying, but when you are investing in property overseas (e.g. in Thailand) it is especially important.

We have heard from property owners with “buyer’s remorse” on more than one occasion, and they all insist that due diligence was conducted. Their definition of this is: “My lawyer requested the title deed from the Land Office. He had it translated, and it confirmed the ownership in the name of the seller, and that the property had no mortgage against it.”

While that may be a good first step, it is not real due diligence.

When buying real estate, due diligence should comprise the following (at the very least):

  • A comprehensive title search, including the validity of the deed itself, as well as the full history. The fact that a title deed was issued does not confirm that it was issued legally. It is possible for a title deed to appear in order, only later to be deemed invalid;
  • The legal rights of access to the property must be verified;
  • A detailed report of the laws governing land use and the regulations covering any construction on said land (if the property is a plot of land on which you plan to build);
  • If the land has an extant building (e.g. a villa), the building permit for the structure must be examined to confirm it is legally valid. The existence of a building permit is not evidence that the building is legal. If it is deemed to be illegal, it is possible that it could be ordered to be torn down;
  • If any particular licensing is required by the property you plan to buy (such as a condominium license or an additional hotel license if the development will function in both capacities), verification of said licenses is imperative. It is occasionally overlooked that a project must be built in a certain way, to qualify for condo or hotel licensing. Higher-end developments are surprisingly not immune from this oversight. A seaside development in Phuket was once sold as a condominium – even winning “best condominium” awards – only for everyone to be“shocked” later when it was revealed it did not qualify for its condominium license because the access road was too narrow. The development instead became a hotel; and
  • If you are acquiring a property by means of taking over the company which owns said property (a practice not typically recommended), it is advisable to conduct a thorough examination of all company records – legal, accounting, and corporate.

LEAVING A WILL IN PHUKET AND INHERITING A PHUKET PROPERTY

Planning Ahead: Why Every Phuket Property Owner Should Have a Thai Will And Why 

Making a Last Will and Testament is one of the most important steps you can take, and good Phuket property legal advice will ensure it’s done correctly.

No matter where you live or where your assets are located, making a Last Will and Testament is how you can take to protect your loved ones. Planning ahead ensures they are looked after and makes settling your estate far easier for everyone involved.

No Forced Heirship in Thailand

In Thailand, there are no forced heirship laws, unlike countries such as France, Italy, Spain, Portugal, Japan, and many Arabic nations, where assets must be divided among descendants and spouses by law. Here, if you own Thai assets, including real estate such as a high-value Phuket villa, you should absolutely have a Thai Will in place.

Thailand follows common law principles and adheres to the rules of intestacy. If you die without a Will, your assets are distributed equally among your statutory heirs, typically starting with descendants and spouses. But this process is far from quick or simple. Even if you are legally married to a Thai national, settling your estate without a Will can turn into a lengthy, complex, and costly process.

It is important to note that “legally married” means exactly that – long-term partners who are not legally married have no legal claim to joint assets.

The Challenges Without a Will

If you have no family in Thailand and die intestate, your loved ones could face significant obstacles. They might have to travel thousands of miles to Thailand, prove their identity, and then navigate a complicated legal process that requires a Thai lawyer. This can take years and legal fees can consume a significant portion of the estate. In some cases, authorities may not even recognise them as beneficiaries.

Some people assume their overseas Will is sufficient. While foreign Wills are technically valid in Thailand, probate must still go through Thai courts. This means the Will must be translated into Thai, notarised, and authorised by the Ministry of Foreign Affairs. Depending on its length, translation and legalisation costs can rival or exceed the cost of drafting a Thai Will in the first place.

Inheritance Rules for Foreigners

If you inherit landed property in Phuket, such as a villa, townhouse, or bungalow, you may not title it in your own name. The law requires it to be transferred to a Thai national within a reasonable period (often 180 days).

If you inherit a condominium, the process is more favourable. You must notify the Land Office within 60 days, pay the necessary transfer fees, and have the title deed transferred into your name. However, two conflicting pieces of legislation govern condominium inheritance, and even lawyers disagree on which holds greater authority. In some cases, the outcome could depend on which judge hears the case.

Getting a Thai Will for Your Phuket Assets

The best approach is to use a qualified Thai lawyer to draft your Will. It’s quick, relatively inexpensive, and ensures the process is done correctly. While district offices (Amphur) can prepare a Will for you, this service is only practical if you can speak and write Thai fluently.

When your Will is complete, make multiple copies. Provide one to each family member named as a beneficiary, give one to your lawyer, keep one in a safe place for yourself, and give another to a trusted friend.

By taking this step, and obtaining the right Phuket property legal advice, you can help ensure a smooth, stress-free transfer of your estate to your heirs, protecting both your assets and your family’s future.

With the right Phuket property legal advice, you can move forward confidently, whether you’re investing in a Phuket villa or a modern Phuket condominium on the island.

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