Real estate terminology knowledge can be the difference between success or ruin. Understanding industry-specific terms, allows potential home buyers, especially foreigners looking to invest in Bangkok, to navigate the Bangkok’s real estate market effectively.
This Bangkok real estate glossary distinguishes itself through its focus on terms relevant to foreigners. This glossary encompasses various types such as legal, architectural, and financial terminologies. Legal terms might include “freehold” and “leasehold”, architectural terms could involve “duplex” and “penthouse”, while financial terms often cover “mortgage” and “down payment”. These categorizations serve specific needs within the real estate market, addressing the complexities encountered by foreigners in Bangkok.
What sets the real estate glossary apart from regular types is its adaptation to Bangkok’s unique legal and market conditions. For instance, “Chanote” represents a unique type within the glossary, referring to a title deed indicating full ownership rights, a concept specific to Thailand. Common features among these glossary terms include their relevance to transaction processes, property ownership, and investment strategies. Terms such as “Transfer Fee”, “Sinking Fund”, and “Maintenance Fee” are common and crucial for any transaction.
Unusual types within the real estate glossary often relate to local practices and regulations, such as “Norb Sor Sam” (a land document indicating confirmed land use rights) and “Por Bor Tor” (a tax document). Unique types highlight Bangkok’s specific real estate aspects, like “Baht per Square Meter”, a pricing measure, and “Foreign Quota”, referring to the percentage of a condominium’s units that can be owned by foreigners.
30-Year Lease Agreement
A 30-year lease agreement in Bangkok real estate is a type of long-term rental contract between landlords, such as condominium developers or landowners, and tenants, including foreign investors or homebuyers, offering possession but not ownership rights for a maximum of three decades.
30-Year Lease Renewal
A 30-year lease renewal in Bangkok is a type of property agreement extension that foreign investors, including individuals from Europe and corporations from Japan, commonly secure for residential and commercial properties such as condominiums and office buildings, ensuring continued usage rights after the initial lease term expires.
30-Year Leasehold
A 30-year leasehold in Bangkok is a type of property ownership agreement allowing foreigners, including investors and home buyers, to possess real estate such as condominiums and apartments for a maximum duration of 30 years, with options for renewal subject to the property owner’s agreement.
Absentee Ownership
Absentee ownership is a type of real estate investment where the owner, often foreigners like Americans or Europeans, does not reside within the property or country, examples include condominium units in Sukhumvit or luxury villas in Phuket.
Accessory Dwelling Unit
An accessory dwelling unit in Bangkok is a type of residential property that serves as a secondary housing unit on a single-family lot, examples include granny flats and garage apartments, providing additional living space without altering the primary residence’s footprint.
Accrued Interest
Accrued interest in Bangkok real estate transactions is a type of financial charge, calculated based on the amount of principal outstanding and the interest rate, examples include interest on delayed payments for condominiums like The Met Sathorn and Magnolias Waterfront Residences.
Adjustable-Rate Mortgage
An adjustable-rate mortgage, a type of home loan, features interest rates that change over time based on an index and margins, common in Bangkok’s real estate market, including properties like condominiums in Sukhumvit and luxury villas in Silom.
Affordable Condominium
Affordable condominiums in Bangkok are a type of residential property, characterized by their price range, typically under THB 3 million, locations mainly in peripheral districts like Nonthaburi and Pathum Thani, and amenities including basic facilities such as swimming pools and fitness centers.
Affordable Housing
Affordable housing in Bangkok is a type of residential property, characterized by pricing levels accessible to individuals or families with median or below-median income levels, such as condos in the On Nut or Lat Phrao districts.
Agent Commission
Agent commission in Bangkok real estate transactions is a type of professional fee, involving categories such as residential sales (condominiums, townhouses) and commercial sales (office buildings, retail spaces), where percentages typically range from 3% to 5% of the sale price, paid by sellers, exemplified by a condominium sale at 5 million THB incurring a commission of 150,000 to 250,000 THB.
Air Rights
Air rights in Bangkok real estate, a type of development right, enable property owners, such as condominium developers (e.g. Ananda Development) and commercial real estate investors (e.g. Central Pattana), to build or sell the space above their land.
Alley Access
Alley access in Bangkok properties is a type of property feature, which belongs to broader categories such as location characteristics and access types, examples include narrow streets in residential areas like Ekamai or commercial back lanes in Silom.
Allocation Agreement
An allocation agreement in Bangkok’s real estate sector is a type of legal document that assigns specific units in developments, such as condominiums (e.g. The Monument Sanampao, Noble Ploenchit) and office buildings (e.g. Gaysorn Tower, Park Ventures Ecoplex), to buyers or investors under defined conditions.
Amenities
Amenities in Bangkok real estate for foreigners categorize into convenience amenities, luxury amenities, and community amenities, where convenience amenities include on-site laundry and vending machines, luxury amenities encompass rooftop pools and private cinemas, and community amenities cover shared spaces like gyms and barbecue areas.
Amortization
Amortization, in the context of Bangkok real estate transactions involving foreigners, is a type of loan repayment process where periodic payments cover both interest charges and the principal amount, ultimately reducing the loan balance to zero.
Annual Depreciation
Annual depreciation in Bangkok real estate for foreigners is a type of financial expense, decreases property values, examples include wear and tear of condominiums such as The Met Sathorn, and diminishing appeal of older retail spaces like CentralWorld Plaza.
Annual Value
Annual value, in Bangkok real estate for foreigners, is a type of financial metric that calculates potential rental income from properties, such as condominiums and commercial spaces, by multiplying the expected monthly rent by twelve.
Appraised Value
“Appraised value in Bangkok’s real estate for foreigners is a type of financial assessment, which banks such as Kasikornbank and Bangkok Bank utilize to determine loan amounts, based on factors including location examples like Sukhumvit or Sathorn, current market conditions evidenced by recent sales of comparable properties, and property specifics such as size and amenities.”.
Appreciation
Appreciation in Bangkok real estate is a type of financial gain that results from increases in property value due to various factors such as location improvements, demand surges, and developments in infrastructure, with examples including the rise in condominium prices in the Sukhumvit area following the BTS Skytrain extension and the value uplift in commercial properties near the new Bang Sue Grand Station.
Appreciation Rate
Appreciation rate is a type of financial metric which measures the increase in property value over time, evidenced by Bangkok’s luxury condominiums in districts like Sukhumvit and Silom experiencing annual appreciation rates between 5% to 7%.
Appropriation Clause
An appropriation clause is a type of legal provision in real estate contracts allowing developers to reallocate funds among different projects, a practice common in Bangkok developments such as mixed-use complexes and residential condominiums.
Area Median Income
Area median income in Bangkok defines economic categorization levels for neighborhoods such as Sathorn and Sukhumvit, measuring residents’ average earnings to determine housing affordability for home buyers and real estate investors.
Asok Intersection Real Estate
Asok intersection real estate is a type of urban property encompassing commercial spaces such as Terminal 21 shopping mall and residential areas like condominiums including Hyde Sukhumvit 11.
Assessed Value
Assessed value in Bangkok real estate is a type of property valuation used for tax purposes, determined by government officials, based on factors including location examples like Sukhumvit and Silom, and property types examples like condominiums and office buildings.
Assignee
“Assignee in Bangkok real estate is a type of foreign investor or buyer, encompassing categories such as individuals seeking luxury condominiums, examples include expatriates purchasing at The River, and institutional investors targeting commercial properties, examples include REITs investing in office buildings like Park Ventures Ecoplex.”.
Assignment of Lease
“Assignment of lease” is a type of legal agreement in real estate transactions where lessees transfer their leasehold interests to third parties, examples include foreign investors acquiring leaseholds in Bangkok condominiums and businesses subletting commercial spaces in Sukhumvit area.
Assignment of Rents
Assignment of rents is a type of security interest, allowing lenders such as banks (e.g. Kasikornbank, Siam Commercial Bank) to collect rental income from properties (examples include condominiums, commercial buildings) directly, in the event of default by the borrower (foreign investors, real estate owners).
Assumption of Mortgage
Assumption of mortgage is a type of financing arrangement where buyers, including foreign nationals considering properties such as condominiums in Sukhumvit or luxury villas in Thonglor, legally take over the seller’s existing mortgage, avoiding the need for a new loan.
Auction Sale
Auction sale is a type of property sale where properties, including condominiums such as The River and single-family homes like those in Sukhumvit, are sold to the highest bidder through a public bidding process.
Baan Mankong Program
Baan Mankong Program is a type of urban renewal initiative, directly targeting communities, such as Klong Toey slum in Bangkok, through government-funded housing projects aimed at improving living conditions for low-income urban dwellers.
Backfill Space
Backfill space is a type of commercial real estate in Bangkok, examples include vacant sections in shopping malls and unoccupied office floors in business districts, which developers lease as temporary locations for businesses such as pop-up stores and seasonal outlets.
Bangkok CBD (Central Business District)
Bangkok CBD is a type of urban area, encompasses commercial properties, such as office buildings, like MahaNakhon and King Power Mahanakhon, and residential complexes, including The Met and Ashton Silom.
Bangkok Condo Market
Bangkok condo market is a type of real estate market, consists of luxury, mid-tier, and affordable condos, where luxury condos include developments like 98 Wireless and The Ritz-Carlton Residences, mid-tier condos feature projects such as The Line Sukhumvit 71 and Ideo Mobi Asoke, and affordable condos encompass options like Lumpini Suite Din Daeng and I Condo Ngamwongwan.
Bangkok Land Reclamation
Bangkok land reclamation is a type of urban development process, involving the conversion of water bodies into buildable land, as seen in projects like Royal City Avenue (RCA) and the expansion of Suvarnabhumi Airport.
Bangkok Metropolitan Administration
Bangkok Metropolitan Administration is a type of local government authority responsible for urban management, including infrastructure projects like the construction of the BTS Skytrain and MRT subway systems, and regulatory functions such as property zoning regulations and issuance of construction permits.
Bangkok Metropolitan Region
Bangkok Metropolitan Region encompasses types such as central business districts (examples include Sathorn, Sukhumvit), residential zones (examples include Bang Na, Lat Phrao), and mixed-use areas (examples include Ratchaprasong, Silom).
Bangkok Residential Market
Bangkok residential market encompasses condominiums, apartments, and single-family homes, each appealing to different segments including expatriates, investors, and locals seeking ownership or rental opportunities.
Bangkok Skyline View
Bangkok skyline view is a type of property feature that includes categories such as riverfront views, exemplified by developments like The River and Iconsiam, and cityscape views, highlighted by condominiums such as MahaNakhon and Le Luk.
Base Rent
Base rent is a type of fixed expense in commercial leases in Bangkok, characterized by its exclusion of operational costs, insurance, and taxes, with examples including the monthly rent for office spaces in Sathorn district or retail spots in Sukhumvit area.
Base Rent Agreement
Base rent agreement in Bangkok is a type of lease contract, specifies monthly payment amounts, and excludes additional fees such as maintenance, utilities, and service charges.
Beachfront Property
Beachfront property is a type of residential or commercial real estate located directly on the ocean coastline, examples include luxury villas in Hua Hin and high-rise condominiums in Pattaya.
Below-Market Value
Below-market value in Bangkok real estate refers to properties priced lower than the current market rate, a type of investment opportunity encompassing distressed sales like foreclosures and short sales, and developer discounts during pre-sales or promotions.
Bi-weekly Mortgage
A bi-weekly mortgage, in Bangkok real estate for foreigners, is a type of payment plan where borrowers make payments every two weeks, reducing total interest costs over the loan’s life compared to traditional monthly payments, as exemplified by reduced interest accrual on condos in Sukhumvit and townhouses in Silom.
Bill of Sale
A bill of sale, in Bangkok real estate transactions involving foreigners, is a type of legal document that evidences property transfer from seller to buyer, as observed in transactions for condominiums like The Monument Sanampao and The River.
Blended Interest Rate
Blended interest rate is a type of financial instrument in the real estate market in Bangkok that combines rates from multiple loans into a single rate, benefitting foreigners by offering a more favorable overall interest expense on properties such as condos (e.g. The River, 98 Wireless) and villas (e.g. Siam Royal View, Baan Ing Phu).
Blue Book (House Book for Thai Nationals)
A blue book, serving as a government-issued property document for Thai nationals, is a type of legal identification for houses including condominiums, detached houses, and townhouses in Bangkok.
Bona Fide Purchaser
A bona fide purchaser in Bangkok real estate is a type of buyer who, unaware of any prior claims or defects in the property’s title, invests in properties such as condominiums or commercial spaces based on the belief of having a clear and rightful claim.
Bridge Loan
A bridge loan, classified as a type of short-term financing, allows individuals, including foreign investors in Bangkok properties such as condominiums and commercial buildings, to secure immediate funds.
Building Permit
A building permit in Bangkok is a type of legal authorization, required by the Bangkok Metropolitan Administration, for the construction, extension, or renovation of buildings, including commercial properties like shopping malls and residential spaces like condominiums and houses.
Building Transfer Fee
Building transfer fee is a type of legal cost, imposed on property transactions, including examples like condominiums and commercial buildings in Bangkok.
Buy to Let
“Buy to let” is a type of real estate investment where investors purchase properties, such as condominiums in The River Condominium Bangkok or villas in the Narasiri Hideaway Bangkok, to rent them out for income.
Buy-Sell Agreement
A buy-sell agreement in Bangkok real estate is a type of legal contract that involves property transactions between foreign investors, including condominiums and commercial spaces, and mandates the conditions under which a property’s ownership can change hands, such as death, divorce, or decision to sell.
Capital Appreciation
Capital appreciation, a type of financial gain, results from the increase in property value over time in Bangkok real estate markets, examples include luxury condominiums in the Sukhumvit area and riverside properties along the Chao Phraya River.
Capital Gains
Capital gains in Bangkok real estate investment is a type of financial profit, examples include profit from the sale of properties such as condominiums and villas.
Capital Gains Tax
Capital gains tax in Bangkok is a type of income tax that applies to profits from selling properties, including condominiums and commercial buildings.
Car Park Ownership
Car park ownership in Bangkok, for foreigners, is a type of real estate investment, encompassing leased land car parks and freehold car parks.
Central Business District
Central business district is a type of urban area, characterized by high density, commercial properties such as offices in Empire Tower, retail spaces in CentralWorld, and mixed-use developments like One Bangkok.
Certificate of Clearance
Certificate of clearance in Bangkok’s real estate market is a type of legal document, verifying properties such as condominiums and detached houses, are free from financial encumbrances and legal disputes.
Certificate of Title
A certificate of title in Bangkok’s real estate market is a type of legal document that evidences property ownership, including condominiums such as The Met and houses like those in the Laddarom Elegance community, and specifies encumbrances such as mortgages or liens.
Chanote Title
Chanote title is a type of land ownership document in Thailand, providing the highest security of tenure, legally recognized examples being residential plots in gated communities (Ladprao, Bang Na) and commercial lands in business districts (Sukhumvit, Silom).
Chao Phraya River Views
Chao Phraya River views is a type of property feature, includes panoramas like cityscape and sunset views, exemplified by luxury condominiums such as The River and Iconsiam.
Chao Phraya Riverfront Property
Chao Phraya Riverfront property is a type of residential and commercial real estate in Bangkok, offering examples such as luxury condominiums (The River, ICONSIAM) and five-star hotels (Mandarin Oriental, Shangri-La).
Civil Code
Civil Code in Bangkok is a type of legal framework, governing aspects such as property rights, contracts between buyers and sellers including foreigners, and inheritance laws, illustrated by regulations on buying condominiums by non-Thai citizens, leasehold agreements for land, and succession rules for assets located in Thailand.
Co-ownership
Co-ownership in Bangkok real estate is a type of property ownership where multiple parties possess rights to a single property, examples include condominiums like The River and Magnolias Waterfront Residences, where individual units are owned by different investors or home buyers while common areas such as pools and gyms are shared.
Co-Ownership Rights
Co-ownership rights in Bangkok real estate is a type of legal ownership where multiple parties hold interest in a property, examples include joint tenancy and tenancy in common.
Commercial Real Estate
Commercial real estate in Bangkok encompasses types such as office buildings, which house companies and professionals, retail spaces, including malls and standalone shops, and industrial properties, like warehouses and factories, serving logistics and manufacturing needs.
Common Area
Common area in Bangkok real estate is a type of shared space including facilities such as swimming pools (examples: Infinity Pool at The River, Lap Pool at Noble Ploenchit), gyms (examples: Fully-Equipped Gym at Magnolias Ratchadamri Boulevard, State-of-the-Art Fitness Center at The Monument Thong Lo), and lounges (examples: Executive Lounge at Sindhorn Kempinski Hotel Residences, Sky Lounge at Le Luk Condominium).
Commonhold
Commonhold is a type of property ownership in Bangkok, allowing foreigners to legally own condominium units outright, exemplified by ownership titles in developments like The River and Magnolias Ratchadamri Boulevard.
Community Title
Community title in Bangkok’s real estate market is a type of property ownership structure that enables purchasers, examples including foreign investors and homebuyers, to own an individual unit, such as condominiums in The River or townhouses in Sukhumvit, while sharing ownership of common areas, like lobbies and swimming pools, with other unit owners.
Completion Certificate
A completion certificate in Bangkok’s real estate sector is a type of official document that government agencies issue to certify that newly constructed buildings, including condominiums like The River and houses such as Baan Sansiri, comply with the approved architectural plans.
Completion Date
Completion date in Bangkok real estate refers to the projected or actual time when construction of properties, including condominiums like The River and houses such as those in Baan Sansiri Pattanakarn, is finished, marking the property’s transition from under construction to ready for occupancy.
Compound Interest
Compound interest is a type of interest calculation where earned interest accumulates on both the initial principal and the interest already paid, exemplified by savings accounts and loans in Bangkok’s banking sector.
Compound Interest Rate
Compound interest rate is a type of interest calculation method used in finance sectors, including bank savings accounts and real estate investments in Bangkok, where it calculates interest on the initial principal and also on the accumulated interest from previous periods.
Conditional Sale
A conditional sale in Bangkok’s real estate market is a type of purchase agreement where the completion depends on specific conditions being met, examples include properties like condominiums or serviced apartments securing financing approval from banks or passing a satisfactory property inspection.
Condo Juristic Person
A condo juristic person is a type of legal entity, enabling management of communal property assets and services in developments like The River and Magnolias Waterfront Residences in Bangkok.
Condo Launch
A condo launch in Bangkok is a type of real estate event where developers introduce new condominium projects, such as The Monument Sanampao and Noble BE19, to potential buyers and investors.
Condo Resale Market
The condo resale market in Bangkok is a type of real estate market segment that involves transactions of previously owned condominium units, such as luxury condos in the central business district areas like Sukhumvit and Sathorn, and affordable units in upcoming neighborhoods like On Nut and Phra Khanong, by foreign investors and home buyers.
Condo Transfer Fee
Condo transfer fee is a type of financial obligation, consisting of categories such as registration fees and specific business tax, which apply to property transactions in Bangkok involving entities like foreign investors and home buyers.
Condominium
A condominium in Bangkok is a type of residential property, which includes categories such as studio units, one-bedroom apartments, and penthouses, characterized by individual ownership of units and shared ownership of common facilities like swimming pools, gyms, and parking areas.
Condominium Act
The Condominium Act in Thailand is a type of property law that regulates condominium ownership and operations, affecting entities including foreign investors and developers by specifying requirements for condominium registration, collective ownership of common property, and management body elections, exemplified by the Condominium Act B.E. 2522 (1979) and its amendments, such as the permission for foreigners to own up to 49% of the total unit space in a condominium project.
Condominium Fees
Condominium fees in Bangkok include management fees, sinking fund contributions, and utility fees, each serving distinct purposes for property upkeep and services.
Condominium Foreign Quota
Condominium foreign quota in Bangkok is a type of property ownership regulation, mandates that a maximum of 49% of the unit space in any condominium project can be owned by foreigners, ensuring the majority ownership remains with Thai nationals, as observed in popular projects like Ashton Asoke and Noble Ploenchit.
Condominium Hotel
A condominium hotel in Bangkok is a type of hybrid lodging, combining features of condominiums, such as ownership of individual units, and hotels, offering services like housekeeping, with examples including The Ritz-Carlton Residences and Four Seasons Private Residences Bangkok.
Construction Defects
Construction defects in Bangkok properties include structural issues, electrical problems, and water intrusion, where examples such as compromised building foundations, faulty wiring systems in condominiums like The Met and The River, and leaking roofs or pipes in developments such as Langsuan Village and 98 Wireless, respectively, illustrate each type respectively.
Construction Loan
A construction loan, a type of short-term loan, finances real estate projects in Bangkok for foreigners, including examples like condominium developments and commercial building constructions.
Contract for Deed
A contract for deed, in Bangkok real estate transactions involving foreigners, is a type of seller financing arrangement where the seller retains the title until the buyer completes all payment installments, examples include properties in developments like The River Bangkok and Magnolias Waterfront Residences.
Conveyance
Conveyance in Bangkok real estate for foreigners is a type of legal process involving entities such as buyers, sellers, and legal representatives, and includes types such as leasehold for condos like The River Bangkok and freehold for villas in gated communities like Nichada Thani.
Cooling Off Period
Cooling off period is a type of contractual agreement term in Bangkok real estate, providing buyers, including foreigners purchasing condominiums such as The River and Magnolias Waterfront Residences, with a specified duration to rescind their purchase contract without penalty.
Corner Unit
In Bangkok real estate, a corner unit is a type of condominium located at the intersection of two hallways, offering increased privacy and potentially more windows, examples include properties in The River and Magnolias Waterfront Residences.
Corporate Real Estate
Corporate real estate is a type of asset management, focusing on property acquisition, management, and disposition for businesses, including sectors like retail spaces (CentralWorld, Siam Paragon) and office buildings (Empire Tower, MahaNakhon).
Cost Per Square Meter
“Cost per square meter” is a type of financial metric, indicating property value in Bangkok, encompassing types such as luxury condos (e.g. 98 Wireless) and prime office spaces (e.g. Gaysorn Tower).
Covenant
A covenant in Bangkok real estate is a type of legal agreement between property owners, detailing restrictions and obligations on properties, examples include restrictions on building heights in residential areas and obligations to maintain communal areas in condominium complexes.
Debt Coverage Ratio
Debt coverage ratio is a type of financial metric that measures a property’s ability to cover its debt payments with its net operating income, examples include ratios above 1 indicating healthy coverage for properties like condominiums in Sukhumvit or office buildings in Sathorn.
Debt-to-Equity Ratio
Debt-to-equity ratio is a type of financial ratio that compares a company’s total liabilities to its shareholder equity, commonly used by banks such as Bangkok Bank and Kasikornbank to assess the financial health of real estate firms including Sansiri and Ananda Development in Bangkok’s property market.
Debt-to-Income Ratio
Debt-to-income ratio is a type of financial metric that lenders use to assess an applicant’s ability to manage monthly payments and repay debts, evidenced by calculations involving total monthly debt payments divided by gross monthly income, with common thresholds for approval in Bangkok’s real estate market for foreigners typically being below 40-50%.
Deed
A deed, in the context of Bangkok real estate for foreigners, is a type of legal document that evidences property ownership, categorized into types such as Chanote and Nor Sor 3 Gor, which represent the highest form of land ownership rights and a less conclusive ownership claim respectively.
Deed of Reconveyance
A deed of reconveyance is a type of property document that signifies the transition of the title from the lender back to the borrower following the full repayment of the mortgage loan, as demonstrated in Bangkok’s real estate practices where properties such as condominiums in Sukhumvit and townhouses in Sathorn become fully owned by foreigners after mortgage clearance.
Deed Restriction
Deed restriction is a type of legal covenant that controls property use in Bangkok, impacting residential areas like Sukhumvit and commercial districts such as Silom by limiting activities like building height and property usage types.
Deferred Maintenance
Deferred maintenance in Bangkok real estate is a type of property neglect, involves delaying repairs on physical structures like condominiums (e.g. The River, Icon Siam) and commercial buildings (e.g. Siam Paragon, CentralWorld), leading to increased future costs and property devaluation.
Demolition Permit
A demolition permit in Bangkok is a type of legal authorization, required for the teardown of existing structures, examples of which include residential homes and commercial buildings.