If you are a Thai national working or living abroad and planning to buy a house in Thailand, you may wonder if you can authorize a relative or trusted person to act on your behalf and at what stage a power of attorney is required. This article provides the answers and explains the necessary steps in an easy-to-understand way.
Q: What is a Power of Attorney (POA)?
A Power of Attorney (POA) is a legal document in which the grantor appoints another person to act on their behalf in matters specified in the document. The authorized person can only act within the scope of the authority defined.
Q: Can I authorize someone else to apply for a loan with a bank in Thailand?
Generally, when applying for a loan with a bank in Thailand, the borrower must submit the application and verify their identity according to the bank’s criteria. Therefore, a power of attorney cannot be used to apply for the loan on behalf of another person.
However, for the Government Housing Bank’s (GHB) loan program for Thai nationals living abroad, interested parties do not need to prepare a power of attorney. And there is no need to travel back to Thailand to start the loan application process.
Borrowers can contact and apply for a loan themselves through Sun Gateway Co., Ltd., the official representative of the Government Housing Bank for the GHB loan program for Thais abroad. This can be done while residing abroad.
Sun Gateway will provide consultation, check eligibility, advise on document preparation, and coordinate with the bank in the relevant steps to ensure borrowers are prepared before entering the loan approval process.
Q: At what stage is a power of attorney used?
A power of attorney is not used in the loan application or loan approval process at the bank. However, it is used in the property transfer process at the Land Office if the borrower cannot travel to Thailand to personally transfer ownership of the property.
Once the bank approves the loan and the property transfer is scheduled, if the borrower is still residing abroad or cannot travel back to Thailand, The borrower can authorize a trusted person to transfer ownership on their behalf at the Land Department using the prescribed power of attorney form and following the Land Department’s guidelines.
Q: Who can be the authorized representative?
Q: If I am abroad, where should I prepare the power of attorney?
If the borrower is abroad and cannot travel to Thailand to personally complete the ownership transfer, they can prepare a power of attorney form as prescribed by the Land Department. This involves certifying the signature and documents according to the Land Department’s guidelines, as well as the requirements of the Thai Embassy or Consulate in their country of residence, or the relevant legal authority in that country, as applicable.
The procedures and required documents may vary from country to country. And in cases where the borrower has a foreign spouse, there may be additional documents or procedures according to the guidelines of the relevant authorities.
Q: What should I do if I am unsure about preparing a power of attorney or other documents?
For borrowers in the GHB loan program for Thai citizens abroad, guidance will be provided on preparing power of attorney documents and related documents using forms and details according to the guidelines set by the bank, the Land Department, and related agencies. However, the registration and transfer of ownership will be subject to the guidelines and discretion of the land officer in each case.
