Land Allocation License For Developing A Housing-estates In Thailand

We feel it is now time to make all our client feel more secure when buying a house in The Village Hua Hin

The majority of developers in Hua Hin don’t bother applying for a “Land Allocation License” as it is time consuming and very costly. An application can take approximately 12 to 18 months to be granted. The process also requires the developer to place a deposit with the government, which will only be refunded once, all of the infrastructure is completed and over 50% of the development is sold and transferred to the buyers.

The property developer must file an application according to the Land Development Act of B.E. 2543 (2000) which requires the following information.

The title deed or other document giving rights to the land must indicate that the applicant has rights to the land without there being any encumbrance registered on the land, except for a mortgage.

In the event that there is a mortgage registered on the land, the consent of the lender is required with information indicating how much of the debt is and when the mortgage will be paid in full.

1. A plan of the allocation of the land into individual plots with estimates of the areas of each plot.
2. Plans and details regarding the construction, provisions & maintenance of public utilities and adjustments to the land, including any other public services must also be filed.
3. The name of the bank or other financial institution that will be guaranteeing the construction and maintenance of the public utilities must be filled.
4. The method of distributing the individual land plots, including the method of payment must be included in the sales & purchase agreement for each individual plot.

The Many Benefits Of Any Development That Has a Land Allocation License.

1. The developer must register the housing project with the government before any construction can start.
2. The developer must make a refundable deposit with the government to guarantee all of the infrastructure and utilities are correctly installed as per the registered plans.
3. The detailed plans must include the sub-division of all plots, so ever purchaser will receive their own land title deed/Chanute issued by the land office.
4. The residents can create their own Juristic office to manage the development (Under the civil & commercial code 149-171) once 50% of the plots are sold. This allows the co-owners to manage the costs for security, gardening, maintenance, refuge and a host of many other services.