THE 49% CONDO RULE. WHAT YOU ACTUALLY OWN- LAND INCLUDED

When a foreigner buys a condo in Thailand, you own your unit 100%, freehold, in your own name. The famous “49%” isn’t about your apartment, it’s a cap on the whole building.

And the proof you own it is its own kind of document. A condo doesn’t come on a land title. It gets a special deed called the Or Chor 2 (อ.ช.2), the condominium unit title, separate from the Chanote that covers the land. Your Or Chor 2 names your unit, its floor and size, the land plot the building sits on, and the exact share of common property that comes with it.

Here’s how the 49% works.

Add up all the units and you get 100% of the sellable floor space. By law, foreigners can own up to 49% of that total floor area; at least 51% must remain Thai-owned. The key word is area, not number of units. One large penthouse can consume more foreign quota than several small studios. The first question on any deal should be: how many square metres of foreign quota are still available in this building?

Now the part almost nobody explains: the pool, the gardens, the lobby, and the land beneath the building.

A condominium is split by law into two parts: the private part (your unit) and the common property. The common property includes the land the building stands on, hallways, lifts, pools, gardens, parking areas, and other shared facilities. When you buy your unit, you automatically receive an undivided share of that common property. That ownership share is recorded on your condominium title deed and is attached to the unit.

So while a foreigner cannot simply buy Thai land directly, a foreign condo owner legally holds a proportionate share of the condominium’s common property, including the land beneath the building, through ownership of the unit. The 49% foreign quota is calculated by the total floor area of the private condo units, not by counting units, and not by separately adding the land.

That same ownership ratio helps determine your voting rights within the condominium and your share of common area expenses.

Then the money, and this part is important.

To register a foreign freehold condo in your name, the purchase funds normally need to come from outside Thailand in foreign currency and be converted into baht by a Thai bank. The bank then issues the Foreign Exchange Transaction (FET) documentation, which is required by the Land Office when registering foreign ownership.

You don’t necessarily need your own Thai bank account, but the transfer route should be confirmed before sending any money. If funds pass through a lawyer’s escrow account, make sure the receiving bank can issue the required documentation in the exact name of the buyer who will appear on the title deed.

I’m not a lawyer, so this isn’t legal advice. But these are good questions to ask yours:

• How many square metres of foreign quota are still available in this building?

• What percentage share of the common property comes with my unit?

• How should I transfer the purchase funds so they qualify for FET clearance?

• What exact name and purpose should appear on the SWIFT transfer to ensure the FET is issued correctly?

• If the money goes through escrow, how is it protected and documented along the way?

𝑻𝒉𝒆 𝒖𝒏𝒊𝒕 𝒊𝒔 𝒕𝒉𝒆 𝒆𝒂𝒔𝒚 𝒑𝒂𝒓𝒕.

𝑻𝒉𝒆 𝒎𝒐𝒏𝒆𝒚 𝒉𝒂𝒔 𝒕𝒐 𝒂𝒓𝒓𝒊𝒗𝒆 𝒔𝒑𝒆𝒂𝒌𝒊𝒏𝒈 𝒕𝒉𝒆 𝒓𝒊𝒈𝒉𝒕 𝒍𝒂𝒏𝒈𝒖𝒂𝒈𝒆.

If you’re curious about what types of villas currently offer the strongest investment potential on the island, you can browse Jane’s latest Koh Samui property listings here.