Thailand Property Glossary
Concise definitions of the terms you meet when buying property in Phuket. Each term is covered in depth in the blog.
Condominium
A condominium is a residential building legally registered under Thailand’s Condominium Act, where each unit carries its own ownership title and common areas belong to all owners in shares. Condominiums are the only property type foreigners can own outright (freehold), within the 49% foreign quota of the building’s area.
Freehold
Freehold is full, perpetual ownership of a condominium unit registered at the Land Department in the buyer’s name — including a foreigner’s. Freehold is inheritable and can be resold with no time limit.
More on this term →Freehold vs leasehold in Thailand: full comparison →
Leasehold
Leasehold is a registered 30-year lease with renewal options, typically 30+30+30. It costs less to enter than freehold, involves fewer currency formalities, and while the foreign quota lasts a unit can often be converted to freehold.
More on this term →Freehold vs leasehold in Thailand: full comparison →
Chanote
A Chanote (Nor Sor 4 Jor) is the highest form of land title in Thailand: GPS-surveyed boundaries and full ownership rights. It is the title to verify before buying a villa or land; lower-grade titles carry more risk.
FET (Foreign Exchange Transaction)
The FET form is a bank document confirming foreign currency was brought into Thailand to buy property. Without it a foreigner cannot register freehold, and repatriating proceeds on resale becomes harder.
More on this term →FET: how to transfer money into Thailand correctly →
Sinking fund
A sinking fund is a one-time contribution to the condominium’s capital repair fund, paid by the owner at unit handover; the typical range in Phuket is 500–1,000 THB per m². The fund pays for major works: façades, lifts, pools, building systems.
More on this term →Full cost of buying: every fee and charge →
CAM fee (common area fee)
The CAM fee is the monthly charge for maintaining common areas: security, cleaning, pools, gym. It is calculated per square metre; in new Phuket projects it runs about 60–90 THB/m² per month.
More on this term →Full cost of buying: every fee and charge →
Rental pool
A rental pool is a rental programme where income from all units in the complex is pooled and split among owners pro-rata, regardless of whose unit was occupied. The model smooths out seasonality and differences in unit position; the split is defined by the contract with the programme operator.
Due diligence
Due diligence is the legal check of a property before purchase: land title, encumbrances, building permit, EIA, developer licences and contract terms. In Phuket it costs 30,000–60,000 THB and takes 1–2 weeks.
Foreign quota (49%)
The foreign quota is the Condominium Act limit: foreigners may own at most 49% of a condominium’s total unit area freehold. Once the quota is full, foreigners can buy leasehold — or choose another building or project.
Off-plan
Off-plan means buying a unit during construction under a developer contract. Entry is 15–30% cheaper than completed stock and instalments are available, but you take on construction risks: delivery timing, quality, and the developer’s financial stability.
Resale
Resale is buying from the current owner on the secondary market rather than from the developer. Pros: the unit exists, the view and rental history are known, and prices are negotiable. Cons: fewer instalment options and the unit’s history needs closer checks.
SPA contract
The SPA (Sale & Purchase Agreement) is the core purchase contract with the developer or seller: price, payment schedule, delivery dates, penalties, exit terms. The SPA is what a lawyer reviews before large payments — a reservation form is no substitute.
Transfer fee
The transfer fee is a 2% government charge on the assessed value when title transfers at the Land Office. Market practice splits it 50/50 between seller and buyer, but it is negotiable in the SPA.
Withholding tax
Withholding tax is charged at source when property is sold: 1% of the assessed or contract value (whichever is higher) for companies, and a progressive scale for individuals. Calculate it upfront — it shapes the seller’s net result.
Thai company ownership
A Thai Co., Ltd. may hold land only when it is genuinely Thai-owned and compliant. Registering or using a Hong Kong or other foreign company does not turn it into a Thai land-owning entity, and nominee shareholders are not a lawful shortcut.
More on this term →Villa ownership via a company: the risks →
Usufruct
A usufruct is a registered lifetime right to use a property and collect its income. It protects interests — for example, a foreign spouse — and survives a change of the land’s owner.
Superficies
Superficies is a registered right to own a building on someone else’s land: the house is yours, the land belongs to another party. Used alongside long-term land leases for villas.
Land Office
The Land Office is the state registry for all property rights: title transfers, 30-year leases, usufructs, mortgages. In Thailand, anything not registered at the Land Office enjoys little legal protection.
EIA (environmental assessment)
EIA (Environmental Impact Assessment) is the mandatory state review for large and coastal projects. Building before EIA approval is the main cause of Phuket’s frozen sites; check the EIA status before any deposit.
Juristic person
The Condominium Juristic Person is the building’s legal entity acting for all co-owners: it collects CAM fees, runs the budget and maintains common areas. Its quality directly drives the building’s condition and resale prices.
Tabien Baan (house book)
The Tabien Baan is the address registration book. The yellow book (Tor Ror 13) can be issued to a foreigner and simplifies daily procedures: driving licence, banking, some transactions. It is not an ownership document.
Guaranteed rental
A “guaranteed rental” is a developer’s marketing promise to pay a fixed percentage (usually 5–8%) for the first years. The guarantee is only as strong as the entity giving it — and is often priced into the unit. Check who guarantees it and what happens when it ends.
Net yield
Net yield is the annual rental income after all costs (management, CAM, utilities, wear) as a percentage of capital invested. A realistic Phuket condo range is 5–10% net; any “12–15%” deserves a hard look at the maths.
ADR & occupancy
ADR (Average Daily Rate) is the average nightly price; occupancy is the share of nights sold. ADR × occupancy defines a unit’s gross rental income — projects can only be compared fairly on both together.
Escrow
Escrow is an account with an independent agent that releases funds to the seller only when deal conditions are met. It is not mandatory in Thailand and less common than in Europe, but sensible insurance for large or resale deals.
LTR & Elite visas
LTR (Long-Term Resident) is a 10-year visa for wealthy residents and investors (a $500k property purchase is among the criteria); Thailand Privilege (Elite) is a membership visa of 5–20 years for a fee. Buying property alone grants no visa, but these programs solve long-stay residence.
Nor Sor 3 / Nor Sor 3 Gor
Nor Sor 3 and Nor Sor 3 Gor are land titles a tier below the Chanote: the right is confirmed but boundaries are less precise (Nor Sor 3 lacks GPS reference). Purchases are possible but require surveying and deeper checks; such plots price lower.