Kentucky Real Estate Business

Posts Tagged ‘THAILAND’

Bangkok – The city
The city of Bangkok (The capital of Thailand) lies in the heart of the country. It serves not only as Thailand’s capital it is also Thailand’s largest city. Bangkok is a hit among foreigners for its booming tourism industry. There is an array of famous and interesting destinations for example Chitralada, Royal Grand Palace, Erawan Shrine, Wat Pho, the Reclining Buddha, the Bangkok National Museum, the Bangkok University Art Gallery and many more. In Thailand Bangkok is indeed the place to be.

Bangkok condo rental
For those planning to stay for quite a while, Bangkok condominiums (or condos) are readily available. In addition the Condos for sale and for rent can be a good investment for the university student, the young professional, the bachelor, or event the foreigner who’s planning a long term visit.

]]>

Living in a condo in Bangkok
Living in a condominium in Bangkok has its benefits. For one, it is relatively affordable, upkeep is generally cheap and, safety is also somewhat guaranteed by the building security team prevalent in most condo projects.

Condo communities
A condo owner can become part of an exclusive community of fellow owner with most condo developments having spas, gyms, saunas, swimming pools and last but not least a library.

Condo investments
A lot of foreigners invest in condo units because it is the only form of asset a foreigner can claim legal possession of. Buying or renting a condo unit in Bangkok is also assisted as there are a myriad of resources in the form of real estate consultants and property agents there to assist in making the process less tiresome. Nowadays, buying or leasing a condo unit has become really expedient.

Condo listings
If you are particularly interested in condo living in Bangkok but you’re still in another country, you can easily check the listings over the internet. The listings of rental properties in Bangkok are usually and mostly located in the most pleasing districts for residential areas. So you can be assured that even if you don’t get to accomplish a viewing at least you know, the condo unit is situated favorably.

http://www.articlesbase.com/real-estate-articles/bangkok-condominiums-living-in-the-heart-of-thailand-4599106.html

Article by RSM

Alien Land & Condominium Ownership Rights

Under normal circumstances in accordance with Thai law, aliens (foreigners) and alien juristic persons are not permitted to own land in Thailand. However, they may acquire land for certain purposes as described below:

Alien juristic persons (foreign business entities in Thailand including companies and partnerships) land ownership rights

They may be granted promotional privileges under the laws of Thailand (Investment Promotion Act B.E. 2520). In accordance with Section 27, these persons with promotional privileges shall have the right to own land in order to carry on the promoted activities to such extent as the Board of Investment deems appropriate.

They are not classified as aliens under Thai law (section 97 and 98 of the Land Code). Those with less than half of their shareholders being foreign are able to purchase land. However, in general practice a juristic person who has foreigners holding shares ranging from forty to forty nine percent must receive prior approval to purchase land from the Land Department or the Governor of the Province in which the land is situated.

Aliens

The amendment of the Land Code Act dated 19 May, 1999 allows certain aliens to own land. Aliens who wish to acquire land must bring foreign currency into Thailand for an amount as specified in the ministerial regulations but not less than 40 million Baht for the specified investment prescribed in the same ministerial regulations. Aliens meeting these Thailand legal requirements may obtain permission from the Minister of Interior. This permission allows aliens to own land for residential purposes in an area not exceeding 1 rai. In addition, aliens are permitted to own condominiums under Thai law (Condominium Act). In a building containing condominiums, aliens including alien juristic persons may own a total percentage of such condominiums up to but not exceeding forty nine percent.

Aliens permitted to own condominiums:

Alien juristic persons

Those under section 97 and 98 of the Land Code B.E. 2497 who are registered it under Thai laws.

Alien juristic persons who have been granted promotional privileges under the investment promotion Act.

Other ones may own condominiums by bringing in Thai or foreign currency to purchase condominiums or using Thai or foreign currency from their accounts to purchase such.

Aliens

Aliens who hold residence permits under the Thai Immigration laws.

Aliens under the investment promotion laws of Thailand.

Other aliens who are not permitted to reside legally in Thailand or have not entered into Thailand under the investment promotion law may own condominiums by bringing in foreign currency to purchase condominiums or using Thai or foreign currency from their own accounts to purchase such.

Any Thai who has an alien spouse including those who have divorced their alien spouse.

http://goarticles.com/article/Alien-Land-Condominium-Ownership-Rights-in-Thailand/4779851/

The Incomparable Lifestyle at The Residences at The St. Regis Bangkok Luxury Condominium

The St. Regis Residences present an exquisite chance to expand your lifestyle. Arriving in Bangkok, the most luxurious condominium, The Residences at The St. Regis Bangkok, combines the vibrant energy of a cosmopolitan metropolis with timeless elegance. Residents will experience the pinnacle of urban living. The exclusive luxury condo Bangkok delivers an exceptional lifestyle through superb design, inspiring views, personal attention to detail, and uncompromising St. Regis services and amenities.

Following in the tradition of the legendary St. Regis New York, The Residences at The St. Regis Bangkok will feature the famed hallmarks of St. Regis hotels, unaccustomed to any other luxury condominiums in Thailand. Among our unique amenities are butler service and luxury accommodations for worldly travelers. The renowned St. Regis Butler Service offers residents in The St. Regis Bangkok’s luxury condominium unparalleled round-the-clock personal attention. Trained in the English tradition, the butlers provide ever-present yet unobtrusive service while anticipating residents’ needs. 

Exclusive residential facilities at St. Regis Bangkok luxury condo include The Astor Residence Lounge; a private meeting room; a fully equipped fitness center featuring immaculate facilities, aerobics room and state-of-the-art equipment; a children’s play room; separate men’s and women’s Jacuzzi and sauna rooms; and a stunning private swimming pool. Showcasing 270-degree views of Bangkok’s brilliant skyline, The Astor Residence Lounge is an invigorating haven of wellness, accessible solely by residents and their guests. A multi-purpose room, meeting room and private lounge are also available for residents of The St. Regis Bangkok luxury condo only.

Buying a condominium in Thailand that is not yet completed or based on the plans of a building requires a different approach than buying in a completed building or a resale unit.  In case of an off the plan purchase the pre-contract phase, before handing over any deposit, should include a check on the background and track record of the developer, including verification with government departments if various development licenses have been granted or applied for.

The pre-contract due diligence phase is aimed at discovering existing legal issues regarding the construction and assesses the chance of completion of the condominium project and possible default by the developer and minimizing the risks of loosing your deposits.

An off the plan purchase for foreigners could involve a freehold or leasehold purchase contract, depending if the 49% foreign quota in the project has been sold out or not. The contract should clearly stated if it is a freehold or leasehold purchase. The condominium purchase contract must comply with minimum standards as required by law for the purpose of consumer protection. In 90% of the contracts we see provisions included in the contract that are not according to consumer protection laws (e.g. warranties and assigment fees) and costs are passed on to the buyer that are by law the responsibility of the developer. We review condominium purchase and leasehold contracts online for a mere 4,800 THB. A qualified English speaking Thai lawyer will advice in detail on the contract and suggest required amendments (if any) and advices on the risks and on compliance with the law.

In the majority of the cases we do an online review of a condominium purchase contract this is profitable for the buyer (you will save on lawyer fees and travel time).  

The unit price in the contract is based on the ‘sale-able’ area of the unit and the final price on the ‘registrable’ area of the unit. Sale-able area means the area on which the contract price is based, and registrable area means the price based on the final exact floor area measured by the Land Department, and which will be shown in the condominium unit title deed. The final price is in 90% of the cases higher than the contract price. The registrable area on which the final price is based is measured by the Land Department condo surveyor from the center of the walls between the units and is not the exact use-able floor area from the innerside of the walls.

Buying a condominium in Thailand involves many legal issues making the help of a Thai property lawyer with knowlegde of condominium law and proficient in Thai and English necessary. We offer an convenient, cost-effective and efficient online condo legal service via our bangkoklawonline and thailandlawonline websites in English as an alternative to traditional lawyer services in Thailand.

Condominium sale-able area price and contract price in an off the plan sale and purchase of a condominium in Phuket Thailand have a different meaning. Foreigners who buy a condominium that is not yet completed will pay a purchase price for the unit based on a square meter price. This is usually not the final purchase price as the size in the plans of the condominium do not have to be the same as the final size of the condominium upon completion and measured by the land departments survey.

A standard clause in a off-plan condominium sale and purchase agreement:

The purchase price of the unit as mentioned in clause x is determined according to the area of the condominium unit to be sold at the rate of baht xx (-the square meter purchase price-) per square meter; totaling baht xxx (-total contract price-), hereinafter referred to as the “Purchase Price”. In the case where the area of the condominium unit to be sold varies from the sale-able area shown in the relevant title deed, the parties shall continue to be bound by this agreement and shall in no case terminate the agreement on the grounds of such variance. In addition, the parties agree to adjust the purchase price to correspond to the increased or decreased area at the rate of the purchase price per square meter as mentioned above.

Saleable area is not the exact use-able condominium floor area, as this is measured from the center of the walls of the condominium which are not common property under Chapter II of the Condominium Act. The outside walls of a condominium are common ownership of the condominium, walls between adjoining units are private ownership.

In an off the plan purchase the final purchase price upon completion will be adjusted according to the final floor area as measured by the official land office survey upon completion of the condominium. Price differences between the contract price for the condominium and the price based on the final floor area of the condominium could have a difference of up to 10%. The sale and purchase agreement could show a purchase price of 5,000,000 baht, but the final price upon completion could be 5,500,000 baht.

Developers in Thailand are very quick in demanding the price difference if this is in their advantage, but usually do not refund if the final purchase price based on the final floor area turns out to be less and would be in advantage of the purchaser.

Do not be surprised if upon completion of the condominium the purchase price is higher than expected. There is no fixed limit in the law on the allowed difference between the final area and size of the unit upon completion.

Also a lease price of an off plan leasehold purchase of a condominium is adjusted to the final floor area as shown in the condominium unit title deed upon completion of the condominium.

Can foreigners still own land or a condominium unit beyond the foreign ownership quota with a Thai limited company in Thailand? In new regulations issued by the Thai government (starting in May 2006) this circumvention of the law by foreigners is no longer ignored by the Thai government.

Thai law permits the purchase of land or condominium by a partly foreign owned Thai company so long as the maximum foreign shareholding does not exceed 49%. Foreigners are under Thai law as a minority shareholder allowed to control a Thai company that owns immovable property and therefore you could argue that foreigners can have a form of freehold ownership or control over property that would normally be restricted for foreign ownership (land or a condominium unit beyond the foreign ownership quota).

Even though property ownership by a partly foreign owned Thai company is a such not illegal under Thai law the Thai government is restricting and discouraging the misuse by foreigners of Thai companies to circumvent property ownership restrictions in Thailand. The Thai government has issued guidelines and regulation that must be applied by the local land offices when they are dealing with a partly foreign owned company.

Before the land office guidelines issued by the Land Department and Ministry of Interior starting in May 2006 it has been common practice for foreigners to own property through Thai limited companies. Currently this is much less common and foreigners who wish to form a company for property ownership will generally have to circumvent the land office regulations and have the shares in the company only registered in their name after the property is registered to the ‘holding’ company (this to prevent investigations into the Thai company and shareholders by the Land Department when registering the property). Under the current land office guidelines, when a partly foreign owned company is registering property (land), the Thai shareholders in the company must be investigated by the land office official before registration and transfer to the company is allowed (i.e. is it a real company or set up to circumvent the law and are the Thai shareholders in the company real shareholders or acting as nominees on behalf of a foreigner).

Existing partly foreign owned (up to 49%) Thai property holding companies are generally ignored by the Thai government but the main drawbacks the foreigner must be aware of are:

1. The purpose of a company may not be to circumvent foreign property ownership restrictions in Thailand. This would be an illegal purpose, making the whole legal set up and registration into the company’s name void under the Civil and Commercial Code and illegal under the Land Code Act. The company must have a business purpose and be in operation as a normal company and file yearly balance sheets and correct accounting (i.e. the company can under Thai law not be a ‘special purpose company’ or ‘land holding company’ for the foreigner)

2. Foreigners are not allowed to use Thai nominee shareholders in the company. According to the current guidelines ‘real shareholders’ are roughly defined as Thais with sufficient income and believable financial history and status, have an employment history and they must be able to proof this at the Land Department (investigation into the company and Thai shareholders only takes place at the land office when registering the property or transferring the property).

3. Whenever registering legal acts (e.g. selling the immovable property) at the Land Department the land office official must investigate the Thai shareholders when it appears to be a partly foreign owned company, even if the foreigner is removed from the updated shareholder list but appears on the Memorandum of association this investigation is under the latest regulations required.

Foreigners who decide to go the company route with additional property ownership in mind (land, land and house or condominium) should be advised by a Thai lawyer with experiences in business and property law. Too often foreigners who set up companies to own property are not properly advised and end up with problems at the Land Department when registering the property because of mistakes made by an inexperienced lawyer.

For more information visit our website www.thailandlawonline.com or email us for more information at info(at)thailandlawonline.com

This is possible if the plot of land is not sold to another new owner or the land owner stay alive long enough to renew your lease terms. Other than this, it is fallacious to think that you can lease a plot of land for 90 years under Thai civil laws.

Under Thai civil laws, a long term lease of a plot of land can be up to a maximum lease period of 30 years. The law also provides for leasing land for the life period of the land owner or the lessee. A 30 years lease of land is a long term lease and has to be made in writing, signed by the lessor and lessee and registered at the district Land Office in order to be legally enforceable. In Thailand any lease of immovable property for more than 3 years must be registered. The registration of the 30 years lease period at the district Land Office means that you, the lessee, have the right to use or benefit from the plot of land for the registered 30 years lease period. No other third party would be able to use or receive benefits from the land for the 30 years. If the land had been bought up by a new owner during the 30 years, this new owner is binding to your 30 years registered lease i.e. allow you to lease the land for the registered lease period. In legal language, you have a real right over the land for the registered 30 years.

Any promises to renew the 30 years lease term for another 2 x 30 lease terms are just promises agreed upon between the land owner and you. An example of such personal promises can be a stipulation in the lease of land contract: “the lessor agrees to renew the lease for another two 30 years lease terms”. Besides the lessor and yourself, no other person is contractually binding to these renewal promises. A third person is not a party to these promise agreements. Therefore, when the plot of land is sold to a new owner, the new owner is not binding to the promise to renew the lease at the end of the 30 years registered lease.

If the land owner dies, the promise dies too, whoever is the land owner at the end of the 30 years is not obligated to renew the lease as well.

Tip

One of the recourse would be to lease the plot of land for only 30 years. Register the written and signed lease of land contract at the Land Office. Alternatively, you may want to consider purchasing a condominium unit(s).

** Written by David Tan. David is a Lecturer of Business Law at Asian University and author of the book “A Primer of Thai Business Law (Second Edition)”, available online at www.chulabook.com . In Bangkok, the book is available at all Kinokuniya and Asiabooks bookstores. Any questions or comments should be sent to Business Legal Advisory Services at: blas.inter@yahoo.com