Real Estate Terminology in Thailand: A Comprehensive Guide

Every profession comes with its unique terminology, and the Thai real estate market is no exception. To help you navigate this specialized language, we’ve compiled an overview of key terms and their meanings.

Key Tip: Always Ask Questions

If you encounter unfamiliar words during your property purchase process, don’t hesitate to ask your agent, developer, or lawyer for clarification. Understanding the details is crucial to avoid misunderstandings.

Participants, Property Types, and Choosing Your Ideal Home

Agent

An agent (individual or agency) helps you find the right property. In Thailand, it’s common for the seller to pay the agent’s commission. Learn more about why working with an agent is essential in our guide: Why You Need a Realtor When Buying Property in Thailand.

Developer

A developer is a company responsible for investing in and executing a construction project. They manage the construction risks and ensure compliance with legal obligations. Developers hire contractors and, after project completion, transfer the property to a management company.

Investment Property

Real estate purchased primarily for generating income, either through rentals or appreciation in value. Proximity to the sea, landmarks, and infrastructure are key factors in determining the appeal of an investment property.

Apartment/Unit

A term used to describe “apartments” in Thailand. The number of rooms refers to bedrooms only, excluding the living room. For example, a one-bedroom unit is a two-room apartment: one bedroom and a separate living room.

Condominium

A complex of apartments with shared facilities and 24/7 security, typically with private, gated access. Condominiums in Thailand can be owned outright by foreign nationals.

Condominium Facilities/Common Area

Shared facilities such as gyms, pools, spas, kids’ clubs, and restaurants within a condo complex. The more diverse and premium the facilities, the higher the price per square meter. However, better facilities often lead to higher rental rates and increased returns.

Area Facilities

This term refers to the availability of nearby conveniences such as shops, beaches, restaurants, and massage salons. Proximity is key—closer is generally better.

Showroom/Sales Office

Developers often have sales offices featuring showrooms—demonstration apartments showcasing layouts and finishes of upcoming projects.

Essential Documents

Condominium License

This certificate confirms that the development complies with condominium regulations, including having at least 30% of the land allocated for communal facilities and a public road access width of at least 7 meters.

Chanote

A land title deed outlining boundaries and ownership details of a plot of land.

Environmental Impact Assessment (EIA)

This certificate, issued before a construction permit, confirms the project meets environmental standards.

Construction Permit

Official government approval for the construction of a specific project. Pre-sales often begin before the permit is issued, offering buyers discounted prices in exchange for potential risks.

Blue Book/House Book

A document that marks the final step of property ownership registration, containing key details about the owner and the property.

Purchase Process

Freehold

A form of outright property ownership. Thai law allows foreign nationals to own up to 49% of the total area in a condominium on a freehold basis.

Leasehold

A long-term lease agreement (up to 90 years, divided into three 30-year terms), registered with the Land Department.

Built-In Furniture

Included in the property’s base price, this typically covers kitchen cabinetry, built-in wardrobes, and bathroom fixtures.

Furniture Package

A complete set of furnishings, from appliances to decor, often purchased for rental purposes. These packages standardize interiors for easier property management.

Reservation Deposit

An upfront payment securing your interest in a property. This amount is typically THB 100,000 for apartments, and it is followed by signing the sales agreement within 30 days.

Payment Schedule

An appendix to the sales agreement detailing the payment timeline, often tied to construction milestones.

Inspection

The process of checking the property before taking ownership. Agents can assist with inspections to ensure the property meets contractual standards.

Fees and Costs

Sinking Fund

A one-time contribution at the time of purchase, used for long-term maintenance of the complex’s common areas.

Registration Fee

Paid to the Land Department for property ownership transfer. Leasehold registrations cost 1.1%, while freehold registrations cost 6.3%.

Common Area Fee

An annual fee for maintaining the complex’s shared facilities, such as cleaning, landscaping, and minor repairs.

Generating Income

Investment Return

The percentage of your property’s purchase price that you earn annually from rental income. For example, a 7% guaranteed annual return means you’ll earn 7% of the purchase price each year.

Capital Gains

The increase in your property’s value over time. Phuket properties typically appreciate by 7–10% annually, depending on the area.

Guaranteed Rental Return

A contractually guaranteed rental income provided by the developer, often managed by a property management company.

Key Takeaway

The Thai real estate market is filled with unique terms and processes. By understanding this terminology, you can make informed decisions and optimize your property investment. If you’re unfamiliar with any term, feel free to contact us for clarification or further assistance.