New law, negative effect?

hogus · Posted: Thu Jun 01, 2006 9:38 am Post subject:

As I said, it will be good to take a deep look to the coming official activities!
Panic doesn't help, but also no "speechifiers".
Let's see what's going in, right?

Farang · Guru Joined: 09 Jan 2003 Posts: 661

timego · Amateur Joined: 06 Apr 2006 Posts: 31

tuktukmike · Guru Joined: 18 Apr 2005 Posts: 525

Karenjuice wrote,

The Department of Land will not allow us to have a purchase of property by a company in case that the company has foreign shareholders or foreign directors. Therefore, we strongly recommend, in order to solve the problem, that we will not put your name as a shareholder or a director as long as your company setup until the company take a receipt of the transfer of the property.

We are seeking your consent that your company will be set up with all 100% of Thai shareholder and a Thai director. In this regard, please you rest your assure that all Thais will be our staff that we will make change in respect of shareholders and director to what your intention is within 7 days after the day that the company takes a receipt of transfer of the property (or soonest as possible).´
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Clearly amazing that the same people who have for so long still think its business as usual, i will not name them but sooner or later you will just have to wake up and smell the coffee.

I dont think it could have been made clearer than it was at the meeting, and it was not just aimed at the property developers.

As many people point out we all knew the risk of the company route and we all took the chance.

As i also pointed out before when persons suggested that the Thais would not dare to enforce their own law and cause problems for farangs, fearing a backlash from various Goverments.

Nonsense, I spoke to the British Embassy and was told they would not be in a position to offer any help.

The reason, if our nationals decide to buy land and house knowing that it is forbiden and take the company route we would not be in a position to complain to the Thai Goverment.

I advised people of this on this forum and even supplied a telephone number you could call for advice.

I am sure though lawyers and others will of course find another back door route to buying but maybe we should all be more carefull in the future.

Mike.

hogus · Posted: Thu Jun 01, 2006 2:01 pm Post subject:

Burger · Ace Joined: 19 Apr 2004 Posts: 1114 Location: Hua Hin

tuktukmike · Guru Joined: 18 Apr 2005 Posts: 525

I would think for now its better for all of us to just wait and see what transpires.

There is no point in everyone giving their differing views at present myself included.

I attended the meeting and know very well what we were told.

So anyway sod the land issue for now and lets get ready for the footie.

Come on England.

BTW, We got shevchenko. Champions Again. Cheers

Mike.

Burger · Ace Joined: 19 Apr 2004 Posts: 1114 Location: Hua Hin

Jim · Posted: Thu Jun 01, 2006 3:53 pm Post subject:

You know what a linguistic pedant I am, so great use of "toe the line".

And the weather is nice for a change over here in Blighty.
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expat TJ · Novice Joined: 01 Jun 2006 Posts: 1 Location: Hua Hin

Hi Karenjuice
Just to put the damper about all the comments I have read in this forum, last week I bought a large section on land through my Thai company name.
I already had another property of which I live in and the new land was for investment.
If your company is set up correctly and accounts are presented on time every year there is not a problem.
The main thing the Thai government is looking for is laundered money, if you are buying property in a Thai company name you will need to prove the money came from outside Thailand.
Another point to remember is if the Thai company way worries you then go for the secure leasehold way, again this is only for 30 years (Leagly) but in the lease contract you can have written in an extension of plus two times 30 years, this is safe and can be in your own name.
Regards
TJ
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TJ from Hua Hin an expat.

Jockey · Ace Joined: 27 Jan 2003 Posts: 1851

Mods - There are two very similar threads which I think should be merged?

JW · Ace Joined: 11 Sep 2005 Posts: 1456 Location: hua hin

Good post tj, this is pretty much what we are hearing also. as far as the leaseis concerned i am told that only the first 30 years is enforceable further terms are not legal. I could be wrong.

Burger · Ace Joined: 19 Apr 2004 Posts: 1114 Location: Hua Hin

30 + 30 year leases, as I understand it:
The 30 year extension is a private agreement between you and the lessor, ie: it is NOT registered on the land paper at the land orifice.
If the lessor sells the land to someone else, or dies and the land goes to their heirs, then the new land owner is only legally bound to the original 30 year lease and not the extension options.

Back to the original topic:
Is anyone out there aware that some projects do not require their buyers to go to the land office for land transfers ?
Some projects already form a company on behalf of buyers (it comes free with the house), they have already transfered the land to this Thai company at the land office, the company shares are then transferred to the buyer at the solicitors office, without visiting land office.
This is common practice already, particularly with top end properties in places like Samui and Phuket.

Burger

hogus · Posted: Fri Jun 02, 2006 4:54 pm Post subject:

JW · Ace Joined: 11 Sep 2005 Posts: 1456 Location: hua hin

Hogus,

Basically a developer on cutting the land into plots and getting the title deed can form companies and transfer the land into the said company. When a buyer chooses to purchase a particular plot the new buyers will replace the original directors in the formed company to own the house built on the company owned land. That is the basic idea, i may have some minor detail incorrect aplogoises if i have.