Generally, construction in Thailand is regulated by the Building Contract Act (BCA) and the Town and City Planning Act of Thailand. These two acts have been comprehensively amended in 1992. The Building Contract Act (BCA) affords for governmental control of practically all categories of construction by means of various applications and retribution in case of violation. The Town and City Planning Act (TCPA), on the other hand deals with the permissible uses of land in different zones.

Moreover, these two acts are both under Ministerial Regulations indicating regulations and zone restrictions. Both building and construction in Thailand can also be restricted by environmental and other laws such as Nature Reserve Act and Forest Act. Lastly, the relationship between a customer/employer and a builder in Thailand is basically governed by a construction contract and the Civil and Commercial Code of Thailand particularly on the chapter of “Hire of Work”.

Building a Home in Thailand

There are several considerations that must be taken into place by the person who wants to build a house in Thailand. These factors are enumerated as follows:

• The nature of the land title (this should at least be a Nor. Sor.3.Gor/Khor or better a Chanote land title deed);
• Is the land title deed correctly issued and the title cannot be revoked on the grounds of any illegal issuance process;
• Existence of a solid legal structure for a long term interest in the land (proper land lease and/or superficies registered with the Land Department);
• Presence of the zoning and building regulations and restrictions for the specific area;
• Presence of a private servitude, public or municipality road connecting the land with the public road;
• Existence of any mortgages, encumbrances, claims or security of any kind registered against the land title deed;
• The land is not subject to any promise or agreement, court order or other judgment or decree;
• The owner is not involved in any action brought before court or bankruptcy/insolvency proceedings;
• The land is not encroached or any encroachment on the land;

Contents of Thai House Construction Contract

A construction contract specifies what, when, where, how, how much and by whom in the building a home project. It also includes the required terms and condition. Moreover, headers and provisions in the construction building contract include the following:

• Whereas
• Planning permission and building regulations
• The price
• Payments
• Carry out the work
• Changes to the work
• Extension of time for completion
• Defects and liability
• Breach and termination
• Contractor’s indemnities
• Miscellaneous
• Governing law

Building Zones under the Building Control Act (BCA) on a Building near a Beach Set-up

Under the Building Control Act (BCA) issued the zoning areas enumerated below which specify what a person can build.

• Area 1: No building is allowed up to ten (10) meters from the beach. The coastline or beach line is a moving line and often at the discretion of the Or Bor Tor who can choose more or less where it starts.
• Area 2: Building of a single storey house not exceeding a height of six (6) meters with a total building area of up to seventy-five (75) square meters is allowed up to fifty (50) meters from the beach or coastline.
• Area 3: Building of a house or building with a height of twelve (12) meters and a ground floor or total building area of not more than 2000 square meters.
• Area 4: Any building of up to twelve (12) meters can be built within an area of more than two hundred (200) meters from the beach.

Sections 4 & 21 of Land Allocation Act

• Section 4 of Land Allocation Act provides that “Land Allocation refers to the sale of plot of land that has been divided into 10 plots upwards with property or other remuneration in return regardless whether it is divided from one or many adjacent plots. It also refers to the execution that the land has been divided less than 10 plots and thereafter, within 3 years, it has been divided in total into 10 plots onwards.”
• Section 21 of Land Allocation Act provides that “Land allocation shall be prohibited unless the approval by the committee. The procedure for application and issuance of license shall be in accordance with regulation, method and conditions specified in Ministerial Regualtion.”