PROPERTY IN THAILAND Part 27 Mortgages, part I
- Published: 10 Mar 2013 at 00.00
- Newspaper section: Spectrum
What if a foreigner wants to buy a home in Thailand and get a mortgage to finance it? Is this possible?
To date, home financing has been limited to those foreigners legally working in Thailand. Historically, practically all property financing for foreigners has been in Bangkok and surrounding areas.
The fact that foreigners can only get mortgages to purchase condominiums is based on the fact that foreigners generally can't own land. According to Section 706 of the Civil and Commercial Code, property may be mortgaged only by a person who owns it. Though a foreigner can own a house on land, if the lease isn't extended, the house may have to be demolished. Given this possibility, a bank can't use such a property as security.
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