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On March 3rd 2000 the Thai Foreign Business Act of 1999 took effect.
(FBA).
This replaced the old Act of 1972.
In a company you need 7 partners but you can according to the
investment control 100% via B.O.I. (Board of Investment). However a
normal 2m baht Thai Company foreigners can have 6 foreign shareholders & 1
Thai but the Thai holds 51% shares. We can however safeguard your interests but
always its best to have 2 or even 3 Thai owners. We can
help you form the company and take care of all steps for you plus search the
Title Deeds & any other request like making sure their is no lien on the
property.
THAIS MARRIED TO FOREIGNERS - the
answer to your land buying problems?
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. 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 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.
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