BOI allows foreign companies to own land, usually factories.
Don't forget the Treaty of Amity, which virtually gives
Americans the right to own 100% of a company doing business in
Thailand. The Japanese use nominees a lot. There are people that
buy in someone elses name and put a mortgage on the property for
the purchase price to protect their interest. There are also
concurrent land leases that can be set up, as there is no
restriction on foreigners owning buildings (40% of a condo
complex) and lastly theres those who trust their wife or friend
& use their name. Laws are worthless without enforcement, &
Thailand practices "selective" enforcement. Foreigners can buy
property in Thailand & please use a lawyer as sometimes Title
Deeds are false, or the building you buy is not on the deed or
the land has encroached on other land.
Most farangs use their Thai wife and give property rights to
them. But if not married to a Thai lady then you can have a 30
year rental Contract.
Rental total fee equals the purchasing price. The
rental-contract is written in English and acknowledged by a
lawyer. This deal is a person-to-person basis. Problems may
arise at expiry date between heirs of both parties.
1/. Be careful. Check utilities
as sometimes theres no phone lines & never believe it until you
have written proof of phone lines are going in.
2/. Learn which areas flood and which don't. A developer will
not tell you. Don’t listen to pub talk. Rent before buying if
you have time or ask the neighbours.
3/. A land lease NOT filed with the land department (and 1% fee
paid) is only valid for 3 years regardless of the term of the
lease. All lease for a period over 3 years MUST be registered at
the Land Office and written in Thai. You have also to pay fees
calculated on the TOTAL amount of rent agreed upon and for the
full period (eg.: rent 1000 baht x 12 months x 30years = 360.000
baht)
4/. Check out the history of the area and talk to the
neighbours where you want to buy.
5/. Ask the Land Dept if there are any proposed additional road
works or projects in this area in the distant future.
6/.If buying any
house/ land check out the title or "chanote". Never buy or
pay a deposit down until you have a clear contract and there is
indeed a title. Again never listen to a sales rep in a moo baan
that the title is going thru or will be available after 3 months
--- chances are there will never be one. They just want the
commission.
7/. Most deposits are non refundable.
8/. If obtaining a loan make sure you have before you place a
deposit or down payment.
9/. If you told that there is only one unit left in the Estate
forget buying.
Those who want to sign a lease-contract and don't want to
register it, should know that such a contract is automatically
void at the death of one of the signatory (this means that such
a contract is NOT transmissible without prior agreement of the
other party.)
While a contract registered at the land office is transmissible
& if one signatory dies, & the contract is not cancelled, the
heirs of the estate have to respect it. This is Ok if the lease
is transferable and every time a transfer is made, the Land
Office must be notified.
If no record of your lease with the developer, then any private
agreement between the 2 parties will not be legally binding. If
the developer wants to play you out, he can. The Land Office
uses only one language - Thai. Even your name in the
Rent contract has
to be in Thai. The "fee" is actually government tax & you pay
the Land Office equivalent to a little under 5% purchase price.
A developer may want a "deposit" equivalent to 1 year's
maintenance fees. They say you recover this amount from the
person who buys the property from me.
But ask your Thai neighbours if they pay it as you will
find they don’t- its rubbish.
Confusing thats why you need our law office.
