Buying Process Phuket

Land Ownership within Phuket, Thailand

True land titles are officially called Nor Sor 4 Gor or more commonly "Chanote" and are issued by the Phuket Provincial Land Office. Land held under Chanotes is accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique "numbered" marker posts set in the ground. Any person wanting to buy land should only consider those held under Chanote title.

Foreign Ownership of Land

The Pearl of Nai Thon development owns the land under Chanote title and will offer apartments for sale under Condominium Status.

A development which has obtained condominium status is able to offer 49% of the total number of apartments to be built, freehold to foreign buyers. The remaining 51% can be offered on a renewal lease typically 30 years with two renewable 30 year terms included in the initial sales contract (totalling 90 years). Shares will be given in a company formed to control the renewal of each period and to create further extensions. This way the apartment owners will create and renew their own lease.

Leasehold verses Freehold

There are many questions asked as to which method is better and there are relevant arguments made for both cases. Since foreigners cannot hold land outright (unless within a condominium approved structure), registered leaseholds are common and with appropriate extensions are equivalent to freehold. Registered leaseholds are safe, uncomplicated and easy to set up. Land registration and stamp duty as a guide are 2.5% of the purchase price. Freehold ownership gives you clear title to your apartment. It is normal for a developer to charge a premium for freehold title. This may have an increased value over a similar leasehold property depending on the development. Land registration and stamp duty as a guide are 5.3% of the purchase price.