House And Land Under Different Ownership

[stickyb]

Here's a case....

Farang sets up company to buy land, then builds house on land. Now, with the worries about crackdown, tranfers ownership of land to Thai friend (not a wife) and ownership of house to himself. Closes down company.

Questions....

1) Can it be done like that?

2) is that legal?

3) is it sensible. What happens if a dispute arises between Thai and farang? Presumably land could be sold, but would that affect the house?

4) What about registering a loan on the land from the faranf to the Thai? Would that help?

[ProThaiExpat]

Many falang own their own houses but the land is registered in a Thai name, wife, friend or what ever.

The land is leased for thirty years to the falang from the Thai and all is well for most.

There are other devices to increase the falangs leasehold security including mortgages, distrubance penalty clauses etc.

The leasehold is registered at the land office and the chanot shows the lease of the land for thirty years, making it almost unsalable or disposable by other means.

In my case I bought the house and land and registered it with a Thai with my taking a 30 year lease with mortgage and penalty of 5 million baht if lease terminated for any reason whatsoever and quite enjoyment disturbed with same penalty.

Rent for house and land equaled the mortgage payments so the finances were a wash. Regardless, the revenue department taxes the rental payments. I negotiated it down to 10K baht for 30 years of tax prepaid.

I have no clue regarding the company shut down aspects of your question. Best ask Sunbelt Asia.

[basjke]

Another save way is to have the thai person who holds the landtitle to sign a loan agreement which you register with the landoffice.In that case you will have the landtittle in your possession so he can't sell the land.Additional you can make a lease agreement for 3 years which don't need to be registered to be legal.You just have him signed lets say 10 lease agreements upfront so you are save for 30 years.Make sure all contracts are made by a good lawyer.

[ProThaiExpat]

The "loan agreement" mentioned above is another way of saying mortgage, which is a loan against the property with the property as collateral.

The real danger with documents that are not recorded, ie. the mentioned 3 year leases, is that there is no "public notice" of the existences of the agreements so no matter how well drawn by a lawyer, the titile holder of the land can convey the land without hinderance. A real mess when the land is conveyed away and a house owned by another is on the property.

[quiksilva]

A 30 year lease is also perfectly legal so why not pay the taxes and registration cost and save yourself all that nonsense.

[basjke]

A 30 year lease is also perfectly legal so why not pay the taxes and registration cost and save yourself all that nonsense.

For the loan agreement you will almost pay the same amount of taxes and registraton as for the 30 year lease.The only difference is that with the lease the landitle stays with the thai person and he is still able to sell the land.With the loan agreement the land title is in your possesion and the thai can't sell the land as long as the loan isn't paid back.Just make sure that the loan is as high as the value of land with house.

Second you can't register both a loan and a 30 year lease in the same name and property.The 3 year lease is legal but doesn't need to be registered.

[Lancashirelad]

Lets say you take the 30 year lease route, build your own house on the land. Then after 5 years you want to sell the house.

What would happen?

Obviously you need a break clause written into the lease.

But other than that, would the remainder of the lease be transferable, or what?

Seperately, what's an usufruct & when & how would it be used?

Edited January 28, 2007 by Lancashirelad

[johnnyk]

Lets say you take the 30 year lease route, build your own house on the land. Then after 5 years you want to sell the house.

What would happen?

Obviously you need a break clause written into the lease.

But other than that, would the remainder of the lease be transferable, or what?

Seperately, what's an usufruct & when & how would it be used?

Basically, you would be selling the lease so make sure transferability is stipulated in the lease agreement.

Excellent info on usufruct, leases etc etc at samuiforsale.com

Disclaimer: I have no interests in the above and they are not selling products/services. I simply found a lot of very good info clearly and well-presented.

[bram]

Lets say you take the 30 year lease route, build your own house on the land. Then after 5 years you want to sell the house.

What would happen?

Obviously you need a break clause written into the lease.

But other than that, would the remainder of the lease be transferable, or what?

Seperately, what's an usufruct & when & how would it be used?

Basically, you would be selling the lease so make sure transferability is stipulated in the lease agreement.

Excellent info on usufruct, leases etc etc at samuiforsale.com

Disclaimer: I have no interests in the above and they are not selling products/services. I simply found a lot of very good info clearly and well-presented.

read a lot about the farang own the house but how a farang can own the house ? does he get a document as for the land for the house ? or is it only the person who is in the tabiaan baan ?

[SiriusBlack1]

This is interesting to me as I am planning to buy some land and build a house on it, with the little woman owning the land. I figured we'd buy the land and THEN set up the lease/mortgage/usufruct so I have some control (of course, that means being prepared to walk away from the land before the house is built, if the TW d