Ownership Options

  • 9 months ago
  • 0

The Hua Hin Property Expert.

For this month’s article I explain the legal aspects of ownership here in our province, so you don’t have to listen to the vest top wearing Chang drinker outside 7/11 who seems to know better than anyone how to do it correctly! Not really enough space to go into all the details so please scan the QR code or email me with any questions should you require and I would be happy to help.

Firstly though, all nationalities can own structures, buildings, houses. The land however is safest in a form of legally registered lease with your expat names securing the rights to the land during the terms. 3×30 years can be registered despite many thinking only 30 years with options to extend, this was true a 5+ years ago but now it is possible to register all terms. More importantly is a well written contract which has rights of renewal, rights to sell, heirs and successors to continue the lease term of the landowner as well as heirs for the buyers. This now creates a freehold form of ownership as you own the rights to this land for a minimum of 90 years and can change in the future or sell on. 

The Company structured ownership is of course still practiced and before leases were an option then they were offered as a legal alternative for foreign buyers, however this was 15+ years ago when 7 names went on a company. Commonly 5 Thai nominees that wouldn’t meet you or know what they were supporting with 2 foreign nationals with 49% ownership but as the only signing directors. This was deemed safe and the best option at the time with the support of Thai law, unfortunately though as years went on and sellers of these companies were simply changing director’s names with no connections to the land office and taxes they decided to change this to a lease and make the company owning land illegal with any foreign names. They do still circumvent this with 3 Thais buying your land and then 1 will resign later to add you into the company away from the knowledge of the land office. 

For many years the lease wasn’t working well, problems arose and I remember at this time law was being tinkered with on a monthly basis until they could get this right and in my opinion this has only really been working well for 3-4 years now. 

Other ownership if married to a Thai national has also improved greatly with the foreign partner having rights to the land (as long as purchase during the time of the marriage period), even giving rights that should anything sadly happen to the Thai national then the foreign can remain the owner until such times they want to sell, you can also have a usufruct contract to agree how to share the asset in case of such times it becomes confrontational. It is not possible to lease from a wife.

Again please let me know if you have any questions or require more details.

Thanks for reading

The Hua Hin Property Expert.

For this month’s article I want to try and explain the legal aspects of ownership here in our province, so you don’t have to listen to the vest top wearing Chang drinker outside 7/11 who seems to know better than anyone how to do it correctly! Not really enough space to go into all the details so please scan the QR code or email me with any questions should you require and I would be happy to help.

Firstly though, all nationalities can own structures, buildings, houses. The land however is safest in a form of legally registered lease with your expat names securing the rights to the land during the terms. 3×30 years can be registered despite many thinking only 30 years with options to extend, this was true a 5+ years ago but now it is possible to register all terms. More importantly is a well written contract which has rights of renewal, rights to sell, heirs and successors to continue the lease term of the landowner as well as heirs for the buyers. This now creates a freehold form of ownership as you own the rights to this land for a minimum of 90 years and can change in the future or sell on. 

The Company structured ownership is of course still practiced and before leases were an option then they were offered as a legal alternative for foreign buyers, however this was 15+ years ago when 7 names went on a company. Commonly 5 Thai nominees that wouldn’t meet you or know what they were supporting with 2 foreign nationals with 49% ownership but as the only signing directors. This was deemed safe and the best option at the time with the support of Thai law, unfortunately though as years went on and sellers of these companies were simply changing director’s names with no connections to the land office and taxes they decided to change this to a lease and make the company owning land illegal with any foreign names. They do still circumvent this with 3 Thais buying your land and then 1 will resign later to add you into the company away from the knowledge of the land office. 

For many years the lease wasn’t working well, problems arose and I remember at this time law was being tinkered with on a monthly basis until they could get this right and in my opinion this has only really been working well for 3-4 years now. 

Other ownership if married to a Thai national has also improved greatly with the foreign partner having rights to the land (as long as purchase during the time of the marriage period), even giving rights that should anything sadly happen to the Thai national then the foreign can remain the owner until such times they want to sell, you can also have a usufruct contract to agree how to share the asset in case of such times it becomes confrontational. It is not possible to lease from a wife.

Again please let me know if you have any questions or require more details.

Thanks for reading

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