Company Title is Good NOT

[Shit_Happens 31]

For the ultra-conservative, they only have one choice – to buy a condo under the 49% foreign-ownership rule. Therefore the property would be under their name. Given that many, many foreigners own both condos and houses under company title, most property buyers will still put their faith in this method. Indeed, it is possible in the future that Thailand will remove the long-term ban on foreigners owning land – but this probably won’t happen until Thailand is in a position where other countries are taking away prospective buyers through more user-friendly laws. Or perhaps, to remove the current restriction as a boost to encourage more direct investment and retirement funds. Cynics argue that on the other hand, Thailand might tighten the current company ownership of property. But imagine what would happen in that event. There would be thousands of expats affected and this would have a huge impact on the country as a retirement destination and the ripple effect onto tourism would have tsunami proportions. Even international trade would be adversely affected should Thailand go that way. No, it is much more logical for Thailand to regularize property ownership. As it is always said, you cannot remove the land from any country. Nor is it very easy to move a completed house or a condominium tower.

 

 

This has been taken from the current edition of the Pattaya Trader and is written by Manny T Langwah.

 

I bet the author is currently trying to figure out how this can be retracted.

Oh well

Edited June 7, 2006 by Shit_Happens

[Shit_Happens 31]

Just an update. Heard today that some of the Lawyers in Pattaya are proposing as a way of getting around the foreign ownership crackdown with Thai companies is to form the company with 100% Thai shareholders, exchange on the house or land and then after it is done, a week or so later, bring the farang into the company with 49% ownership. Albeit it gets the sale through but isn't the new owner still stuck with the same problems. Thoughts anyone.

[Rex7777 0]

People will dream up all kinds of schemes to circumvent the law, but when you're dealing with millions of baht, I think most people will want some assurance that their investment is safe. Thailand needs to establish a clear-cut set of procedures if it wants foreigners to invest. Otherwise, I'm afraid the real estate industry will suffer.

 

Rex

[Gary 4,119]

The bottom line is that they can bullshit and manipulate all they want but it is still against the law for a farang to own land in Thailand. You can have a legal company and own 49 percent. Will you be happy to pay 100 percent and own 49 percent? I think NOT! This is not going to change. Thailand belongs to the Thais and not one square inch is for sale. The Thai constitution states that as well as their national anthem. Toxin tried to make it legal to own land through the VIP card but that too was proven illegal and that scheme fell apart.

 

Be happy with a condo or forget it. A 30 year lease is also legal but owning is NOT the same as a lease. A freehold condo is all we can legally own. Even a legal 30 year lease has tax liabilities that I wouldn't want any part of. Also be aware that farangs can only own a condo in a complex that has less than 49 percent farang owners. It appears that View Talay has a new scheme that forces a farang to buy through a bogus company if they have sold more than the 49 percent share. You pay your money then you are told that you cannot own freehold. That SUCKS!

[Eneukman 1]

Just an update. Heard today that some of the Lawyers in Pattaya are proposing as a way of getting around the foreign ownership crackdown with Thai companies is to form the company with 100% Thai shareholders, exchange on the house or land and then after it is done, a week or so later, bring the farang into the company with 49% ownership. Albeit it gets the sale through but isn't the new owner still stuck with the same problems. Thoughts anyone.

This was suggested as a solution at the Pattaya Ex-Pats Club meeting this morning. The question of what happens when you want to sell wasn't raised but assuming the Thai "majority" shareholder is a director they will be able to sign the documentation for the sale.

 

Another option for those with Thai wives is to give the wife a loan backed up by a mortgage deed. She then buys the house in her own name. You then take a renewable (at YOUR option) 30 year lease on the property giving YOU and ONLY YOU the absolute right to live in the property. If the marriage breaks down and the house is sold, you will at least get your capital back though I'm not so sure about any surplus.

 

As always advice must be obtained from a reputable solicitor.

 

Alan

[MrMango 672]

As always advice must be obtained from a reputable solicitor.

AAHAHH - this could be a big problem...

[Gary 4,119]

After you are married everything becomes a 50/50 proposition. How can you loan money to yourself? It all amounts to paying crooked lawyers big fees, then paying an accountant and filing tax returns every year. For all the fees plus the taxes you could pay a substantial amount of your rent.

 

I have no idea what is going to happen to the guys who got sucked into this mess but it appears that there are going to be some more expensive fixes that are NOT going to solve anything. Had they done their homework they would have seen that they were in a losing deal. The old original advice was the best. DON'T spend more than you can afford to walk away from. I certainly don't claim to be the sharpest pencil in the pack but I could see this coming years ago and ALWAYS said so.

 

I bought my wife ten rai of land. I certainly didn't pay any crook for a lease or a bogus company. I don't file tax returns on it and I don't pay any accountant. If things turn to shit I walk away. It's hers whether I have a company, a lease or some other bogus scheme.

[elef 0]

Probably nothing will happen if you don't change ownership. After 3 months this is over - TIT!

 

I've my property in the name of my thai children so no problem at all.

[Shit_Happens 31]

Probably nothing will happen if you don't change ownership. After 3 months this is over - TIT! 

 

I've my property in the name of my thai children so no problem at all. 

elef.

Sorry if I sound stupid here but did you form a Company with your children as Directors or did you purchase solely in their names. Is there an age limit as my daughter holds Thai & Australian passports and is 5 years old. Could I have property in her name but control the property. Who would sign the documents for the purchase or sale if it was solely in her name and who would the funds from a sale be made out to.

Sorry for what might be stupid questions but any advice anyone.

Edited June 13, 2006 by Shit_Happens

[elef 0]

Don't know but I bought these properties solely in their names (the youngest is 2 y o) and they can't touch it until 18 (or 21), but if we for instance want to borrow money with the property as a pawn my GF as guardian must go to the judge and ask for permission and if the reasons are good enough he may say yes.

Edited June 13, 2006 by elef

[Shit_Happens 31]

elef, thanks for your reply. This sounds a bit to restrictive for what I was thinking of. If you have to seek permission to mortgage the property I can imagine the problems that you would have if you ever planned to sell before the kids came of age.

[elef 0]

I don't need to sell - the income from those investments is what I need at most.

[drilldr 0]

I need some advice now that I've read numerous threads incl. thaivisa.com forum. It's all very confusing to me. I have put some money down on a condo and it was via a thai corp. Now, I can't decide if I should follow through with the purchase or back out and cut my loses. If I back out I'll get hurt but I worry if I go through that either 1. I get caught up in this 'new' crackdown on foreign corps. and / or 2. I can never sell because I do not have outright ownwership and never will. Any advice would be greqtly appreciated. Thanks

[elef 0]

It might be a special reason in your case to own the condo via a thai corp (even if I can't see one - except if too many farangs stay already) so first contact that person who recommended that solution and ask what to do. After that contact a lawyer or if you don't know any go to a meeting with Pattaya Expat Club and ask the members there for help.

[Shit_Happens 31]

I need some advice now that I've read numerous threads incl. thaivisa.com forum. It's all very confusing to me. I have put some money down on a condo and it was via a thai corp. Now, I can't decide if I should follow through with the purchase or back out and cut my loses. If I back out I'll get hurt but I worry if I go through that either 1. I get caught up in this 'new' crackdown on foreign corps. and / or 2. I can never sell because I do not have outright ownwership and never will. Any advice would be greqtly appreciated. Thanks

You do not say whether it is an established block or a new project nearing completion. If it is established you can investigate whether the Condo has reached its 49% of foreign owners. If not you should be able to change the title to your name and complete the sale in your name and legally own it. If it is a new project the same rules apply and if the building is not yet ready to exchange on you should be able to change the title on the contract and be ready to settle quickly to get into the 49% ruling.

The only other alternative that I would entertain is if you have a Thai partner that you can trust and buy the property in the Thai name. But you do not say whether this condo is purely for a short investment or you plan to keep it for a long time. Buying in a Thai name restricts your choices in regards to selling as you will only be able to sell to a Thai and if the property is in the top end of the market it could take a while to find a buyer. But if you plan on keeping it for many years this might not be a major issue.

But I would definately not consider buying it in a Company name that has just been formed to circumvent the Thai property laws. If this is your only alternative I would consider cutting my losses and getting out before you drop any more money into it.

[drilldr 0]

Thanks for the replys. The project is the Northshore condos off Soi 4 and Beach. I had wanted to keep it for long term as I had hoped to some day live in Pattaya in semi retirement. The project is all sold out and I was one of the last people to get involved there. I am concerned that when I go (in 3 days) Raimon (the builder) is going to tell me anything I want to hear to get their remaining money. I have already resigned myself that I may need to walk away. It's not Raimon I really distrust, it's the fickle winds that blow with the Thai govt. I'm really between a rock and a hard place with this as I suspect many others are in this project.

[Shit_Happens 31]

Thanks for the replys. The project is the Northshore condos off Soi 4 and Beach. I had wanted to keep it for long term as I had hoped to some day live in Pattaya in semi retirement. The project is all sold out and I was one of the last people to get involved there. I am concerned that when I go (in 3 days) Raimon (the builder) is going to tell me anything I want to hear to get their remaining money. I have already resigned myself that I may need to walk away. It's not Raimon I really distrust, it's the fickle winds that blow with the Thai govt. I'm really between a rock and a hard place with this as I suspect many others are in this project.

Step back and look at this with a broader perspective as this has not only affected you but it hits the Developers even harder and gives you some bargaining power. Go to the meeting with the agenda to re negotiate the contract on the basis of when the project completes you get title in your name. I have been told that there are a few people pulling out of sales not only because of the recent enforcements of the Thai ownership laws but also as the baht has increased against a lot of currencies some people are finding that when the time comes to settle they cannot come up with the cash for various reasons. This possibly could free up some condos previously signed up under the 49% ownership laws thereby opening up a slot for you to jump in under foreign ownership. If this meeting is not to finalise the sale demand to get the contract changed to state that if foreign title cannot be given a full refund of all monies paid will be given.

The Develepers need the sales so this is possibly the best time to negotiate a better deal for yourself.

Good luck.

 

PS. I do not know if the Norshore is still under construction, if it is my comments are valid. If it is already completed and contracts are already being exchanged well then there is not a lot that can be done except maybe to find an owner who has a condo in a foreign name and buy off them. You would lose the deposit that you have already paid.

It all depends where the Project is up to.

[skippy_nl 0]

The latest news about buying a house or condo under a Thai company is that the land office ( the place where all sales are registered ) are putting ALL transfers House and condo into the computer. Before it was only on paper in a backroom. Also the company register the place where all company registrations and changes are registered, are putting all there documents in the computer. and then they are cross referencing, to see if a company with a farang name listed as shareholder owns land ect.

 

All transfers at the land office have been put on hold.

Maybe after the elections things will get back to normal

[elef 0]

One thread about property!

[Shit_Happens 31]

One thread about property!

elef. If there is supposed to be a link here it's not?

[elef 0]

Actually opposite a member couldn't find the the property threads in this forum so I helped by lifting up with a new post in each thread.