Thailand property investment
Our aim here is to explain briefly the process of buying property in Thailand.
Only Reputed lawyer will advise, check and do all legal document requested before and after the purchase of your property.
Purchase villa in Thailand?
There is many foreigner who are considering Thailand as their second home and own a house in in the smile land. You need to understand and take in consideration below advices if you are planning to buy property.
However is a holiday home, a permanent residence or high rental investment, Phuket is the right place.
TOURASIAN will help you to buy the right propertie in Thailand with the support of our team who guide you through the process. Property in Thailand is complex and unregulated.
Finding a House
Always make use of reputable estate agents when taking advice on real estate in Thailand.
Search and read through Real Estate pitfalls in Thailand. Ask the right questions to expect get the right answer. You will also need lawyer to proceed with paper work through different government agency.
Many problems do arise when you buying a house in Thailand, but can be avoided if you have the information and the righ advices from your real estate agency and Lawyer.
Corporate Ownership of property
Thai corporate structures are mainly copied from British common law. Thai law allows partnerships and other types of corporate entities(Juristic perons) in Thai jargon. Corporate entities are owned by a Thai majority and considered in terms of land property ownership, to be a Thai person and therefore, own land property in Thailand. Note that equitable ownership,does not necessarily equate to actual control of the Juristic Person. The most popular form of corporate land ownership is the Limited Liability Company (LLC).
Under Thai law, foreigners cannot own land in Thailand. However, they are allowed to lease land under a land lease agreement registered with the Land Department and consequently build a own a house on the leased land. This land is usually under company shared with the villas owner and company management who take in Charge all maintenance of the public area.To expand their rights, foreigners must acquire the correct legal ownership of the villa.
Foreign ownership of the villa must also be made in writing and must be registered by the local land office. This is in accordance to the Civil Code Section 456 under the Thai Contract Law.
Control of the Limited Liability Company
Thai law allows the issuing of classified or two tiered stocks. shares may be issued as "Ordinary Shares" where the holder of one share is entitled to one vote, and Preferred Shares where a shareholder must have multiple shares in order to obtain one vote. The Thai majority shares issued as "Preferred" and the foreign minority shares as "Ordinary". This allows the foreign minority shareholders to hold fewer number of shares, but in fact have control of the company by voting rights. To expand their rights, foreigners must acquire the correct legal ownership of the villa .On completion of the agreed purchase, each purchaser will own a Villa plus an equal share of the corporate entities.
How to Set up Your Thai Company
Tourasian team will inform you and his lawyer will help you to proceed on this simple and quick process.
Always consult a lawyer before signing any documents. Foreigners may not own a house in their name; however their Thai registered company may own the house. There are different forms of business entities in Thailand. The most commonly used is a Thai Limited Company.
Buying a House in Thailand
Once we registered your Thai Limited Company, our lawyer will do some search to ensure there is not debt or other mortage attached to the property before signing the contract. If you are buying a house off plan, you would need advice for buying in pre-construction projects. There is also the cost of transfer who may be shared between seller and buyer of the property
Before any purchase it is important to ensure you know what you are purchasing. A title search is "highly advised" before purchasing any kind of real property whether it is a piece of land , a villa, a condominium or company.
A search is done to determine whether the person selling the property is the true owner of the property and free to sell it to you. It also will determine if there are any registered encumbrances on the property such as a loan, lien or a mortgage.
Condo or development are built on its own separate land title.Titles are originally issued in the name of the property developer.
Transfer of Ownership Process
The process of transferring the ownership of a villa to a foreigner involves the following:
• Announcement of the sale. This requires the presence of both the foreigner and the seller at the local land office.
• Issuance of notification form for the sale. This is a 30-day public notice by the local land office to see if anyone will contest ownership of the villa structure.
• Completion of the sale by the local land office.
Ensure that you understand what you are buying, Converting Rai and Wah can create legal issues when people do not understand what it is,
Below are land conversion in the land measurement system in Thailand.
- 1 sq. wah = 4 sq. m. 1 acre = 2.471 rai or 43,560 sq. ft.
- 1 ngan = 100 wah (or 400 sq. m.) 1 hectare = 6.25 rai or 10,000 sq. m.
- 1 Rai = 4 Ngan (or 1600 sq. m.)