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.
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.
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.
Sinking fund
A sinking fund is a one-time contribution to the condominium’s capital repair fund at handover, usually 500–1,000 THB per m². At Layan Verde it is 850 THB/m². It pays for major works: façades, lifts, pools.
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.
Rental pool
A rental pool is a rental programme where income from all participating units is pooled and split among owners pro-rata, regardless of whose unit was occupied. In VillaCarte projects owners receive 60% of the pool’s net profit — roughly 8–10% net per year.
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.