Recommended Solution by Thai Lawfrims. 30+30+30 years for a total of 90. There are many varieties to the leasehold solution. Sometimes, when you buy a leasehold inside a development, you will get shares in the company holding the land that is giving the lease. This means that you and your neighbours will be the ones in charge when it is time to renew the lease.
This is a nice feature but generally not a requirement for lawyers. The lease can, according to most lawyers, be secured without controlling the
company you lease from.
We recommend that you only buy leaseholds from serious developers and have a lawyer check all the contracts.
Some legal pointers for land leasing in Thailand
1. You must have a separate title for the land your house stands on. Co-ordinates are not sufficient.
2. Your lease must be registered at the Land Office.
3. You, the seller and the Land Office shall each have one set of lease contracts. A total of 3 sets. These contracts shall state your right to renew the lease.
4. You should only lease from a company. Not from a Thai individual. Important! The contract to renew is only valid between you and the
party you signed with.
5. The company that you lease from should not be able to mortgage the land or sell it.
6. The company you buy from should have the sole purpose of holding the land for you and not do other business.
7. It is a nice extra feature if you and the other house buyers get shares in the holding company and together control the company that you lease from.
8. Converting to freehold – your lease contract should state that you have a right to convert your lease to freehold at any time. You should be able to transfer as Freehold to yourself or to a Thai person or company if you should wish to do so in the future.
We can help referring you to reputable established lawyers and can attend any meetings in case you buy through us.
49% percent of the total space of apartment buildings with a condominium licence may be sold outright to non-Thai citizens.
This is the safest options of all. You get your own land title that you own in your own name.
It may be possible to use this solution if you own the company together with genuine Thai investors and use the property for the company’s business, such as an office or a hotel that really have the financial means to invest in the company holding the property and will stand scrutiny. The company set-up should not be used to circumvent the Thai law.
Buying Property in a Trusted Thai Person’s Name Not generally recommended. You can add a little extra protection by having this person register a 30-60 year lease for you. But beware – what happens if the person that holds your land passes away or changes their
mind? It is better to use a lawyer and use a proper set-up.
Conclusion – If you want a house, lease the land from a company and own the house building in your own name. If you want an apartment, buy
a freehold unit or lease one for 90 years. If the price is the same always go for the freehold unit.
Knowing Before Buying is Important. Please don’t hesitate to contact us with further questions or for clarification. Apart from your own knowledge,
we recommend that you consult a professional agent with several years of practise and a good lawyer to help you once you have found your
dream home. Phuket Properties Co. Ltd was opened in 2005 and has helped hundreds of clients. Please don’t hesitate to ask us for references!
And remember to book a viewing tour with us before trying to buy by yourself!
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