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How to buy or sell a land in Thailand?
Buy a plot in Thailand can be a daunting experience of these practices and particularly its language barriers, foreign
investors sometimes find the buying process is relatively complex, but in reality they are not very different from other countries, we know all that have to be careful when you buy a property, it is a
universal law in the world, Thailand is slightly different from what we see in our own country. That is why you need to obtain real estate professionals supported by lawyers allows Thai.
Rule of Law
Ownership of land in Thailand is regulated by the Land Department (Service du cadastre), specifying the section of the Act of 1954 "BE 2497", by the Civil and Commercial
Code, and the reform on agricultural land 1975 (Act BE 2518) and by the Ministere de l'interieur Thai.
* The various pieces of legislation provide that an alien can not become owner of land in
Thailand under its own name, and has the unique right to acquire the building itself, eg a house with swimming pool, but does not own the ground.
The exceptions to the prohibition
A) Board Investment (BOI)
The law on investment promotion authorizes the Board of Investment has granted to foreign companies the permission to own
land in order to promote the conduct of investment. The BOI will be responsible for reviewing the field and to propose plans for construction to determine the size of the land is suitable to promote the
activity of the investment. The use of the land must be exclusively limited to the activity of the investment, Secondly the amount of land purchase must be approved by the BOI.
Note If the
company create through the "Investment Board is dissolved on land must be sold within a period 1 year from the cessation of activity.
B) Purchase of condominium (apartment)
A foreigner who buys an apartment in a residence "Condominium" shall transfer funds in foreign currency from a bank account outside Thailand to a Thai bank. The name that
will appear on the final contract of purchase (the buyer), must be absolutely identical to the name of the person who made the transfer the bank account in Thailand for the purchase of the apartment.
What are the legal possibility for a foreign investor?
1) Create a limited liability company (Co.Ltd)
We work closely with a law firm Thai
speaking french, the major part of their clientele is foreign. They specialize in areas related to the law on foreigners and especially the following two services:
* The creation and registration
of a limited liability Thai. "Co.Ltd", effectively controlled by such investor (s) etrangers.
* Conducts real estate transactions through a
e company controlled by foreigners.
The foreigner can personally possess a maximum of 49% of shares in this company right Thai., And the remaining 51% must be in the names of Thai nationals, the
number of people in society: at least 7 people (ex: 5 2 Thai and foreigners).
Note: It can not be more than 3 foreigners into society.
How can control effectively abroad
a company of Thai law?
Foreigners can obtain parts "preferential" which account for 10 voices (or vote) at the general meeting, while the Thai partner (of nominees in general) will have
shares "ordinary" with 1 to see each.
Example:
The alien has 49%, or 49 x 10 (votes) = 490 votes;
Partners Thai 51%, or 51 x 1 (voice) = 51 votes.
So you can understand why you are the priincipaux makers.
Documents will be available on shares in the Company (Share Holder), the alien is called "single Executive Director
(Executive Director balance) in the status of this company and all shareholders Thai. must pre-sign their "Share Holder" no date, and added that the latter you cedent or sell.
This
allows you to control a 100% the Company and its assets, shareholders Thais have absolutely no power over decision making (Executive power) within the Company, and no longer need to be consulted for any
decision taken by the Executive Director, irrespective of the latter and has no time.
2) Contract for "Leasing" on a term of 30 years, renewable
Foreigners
have the possibility to lease land for 30 years containing a clause providing an option for the following 30 years, records at the office of the Land Department, the same contract may be renewed for 30
years. The lessor's heirs are bound by law to honor the agreement, the tenant of the ground lease may bequeath to his heirs (by will drafted by a lawyer). The lease must be registered (or renewed) in the
Office of "State Land", if not, the lease will be valid only 3 years, regardless of the limit insrite.
Note: The tenant of the land may do so by "own" it is not useful to have a corporation.
3) In own name "Thai" with a mortgage
If you have a
Thai friend who agrees to sign as owner, you can buy the land in his name, but you ask a mortgage as a "lender", the property can be sold without your consent, to be more precis until you leve
the mortgage field will not be sold, you will have to pay some administrative costs to the "Land Dep
artement "to save the mortgage.
Note: holding a document of transfer of
property (blank) signed by the owner you can easily change hands in the future.
4) Invest more than 40 million Thai / Bath in Thailand
After authorization of the
Ministry of Interior under the conditions of rules and procedures of Article 96 of the Code of land, an investor can demonstrate a contribution to Thailand for a minimum of 40 million bath as defined in
the code Departmental could acquire a plot of 1 Rai (1 600 m2) maximum.
5) Right to acquire a plot of a Thai spouse, if married, or partner with a (e) foreign (e)
Dated
23 March 1999, new criteria have been developed on the right of acquisition of land from a Thai spouse, married or cohabiting with a foreigner (e):
a) a Thai citizen legally marry a (e) foreign (e)
During his marital status, national Thai now has the right to buy land or to receive a title of ownership to cede a third, after investigation by
the authorities, the Thai national must prove that the funds for the purchase of field comes in whole and exclusively, his own personal funds and is not part of the common property of the couple, why
both spouses must file a written declaration in communication with authorities, concerned.
In the AC, or the foreign spouse will not ratify the written statement regarding the
funds or state in writing that the money to buy land comes from the couple's property (and not only personal funds of the national Thai.) Then demand of land acquisition will be filed subject to the
decision of the Ministry of Interior.
b) a Thai national. cohabiting with (e) foreign (e)
The Thai national has the legal right to buy land or receive a title of ownership to cede
a third (family or otherwise), after investigation by the authorities, the Thai national must prove that the funds to purchase the land , comes in all and exclusively his own personal funds and is not
part of the common property of the couple, why both spouses must file a joint written statement to the authorities concerned.
In the case, or the foreign spouse will not ratify the written
statement regarding the funds or state in writing that the money to buy land comes from the couple's property (and not only personal funds of Thai nationals), then demand of land acquisition will be
filed subject to the decision of the Ministry of Interior.
You can now effectively owning land in Thailand, safely and securely registered with the Thai Government Office of the
Land Office "(Cadastral Service), why there are several possibilities to acquire land on the seafront or seen on the sea, build a house with swimming pool, a project to develop real estate, or
invest in real estate.
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