Thai company to own a house and relationship future

[WhatsNext]

Here in Hua Hin the big projects still use a Thai company for ownership of a house, currently i am being told that the land office accepts 35% ownership. So let's say i am stupid enough to go through with it and make my TGF of 2 years 49% owner of the company, myself the 35% and the lawyer office the remaining. I'll be the director and have more than half of the votes so i can control. 

 

Now my question : after some time the relationship with TGF goes down the drain, how can i sell the company without her consent ? 

The project developer said that all thai owners pre sign a paper for shares transfer without a date and that problem doesn't exist. Yet i also read that Thai ID cards are only valid for a certain number of years and if that time has passed the new ID card should be there for the signature to be valid ?

 

Can someone shed some light on this, in a nutshell - Can i sell the company/house after a relationship goes sour without her having to be there to sign it away ?

[NCC1701A]

wait until i get some popcorn. ok go. 

[scubascuba3]

Not if she's part owner, all she needs to do is see a lawyer and persue money. These fake companies are illegal anyway. 

 

Get a condo in your name, otherwise you are stuck with the GF or you end up losing half the house at least

[tonray]

23 minutes ago, WhatsNext said:

Here in Hua Hin the big projects still use a Thai company for ownership of a house, currently i am being told that the land office accepts 35% ownership. So let's say i am stupid enough to go through with it and make my TGF of 2 years 49% owner of the company, myself the 35% and the lawyer office the remaining. I'll be the director and have more than half of the votes so i can control. 

 

Now my question : after some time the relationship with TGF goes down the drain, how can i sell the company without her consent ? 

The project developer said that all thai owners pre sign a paper for shares transfer without a date and that problem doesn't exist. Yet i also read that Thai ID cards are only valid for a certain number of years and if that time has passed the new ID card should be there for the signature to be valid ?

 

Can someone shed some light on this, in a nutshell - Can i sell the company/house after a relationship goes sour without her having to be there to sign it away ?

If you have to ask these questions now...you're with the wrong girl

[WhatsNext]

7 minutes ago, scubascuba3 said:

Not if she's part owner, all she needs to do is see a lawyer and persue money. These fake companies are illegal anyway. 

Get a condo in your name, otherwise you are stuck with the GF or you end up losing half the house at least

 

I know the companies are illegal, however 90% of the houses here in Hua Hin are structured that way. A lease or usefruct is a possiblity but i dont want to be dependend on a TGF that could meet Brad Pitt one day and dissapear. 

Sadly i hate condo's.

[WhatsNext]

13 minutes ago, tonray said:

If you have to ask these questions now...you're with the wrong girl

 

Nah, i am just not 20 anymore and know that relationships can go wrong. Expect the best, plan for the worst.

[NCC1701A]

5 minutes ago, WhatsNext said:

A lease or usefruct is a possiblity but i dont want to be dependend on a TGF that could meet Brad Pitt one day and dissapear. 

A lease or a usefruct are the way you could possibly "own" a house without having to have your girlfriend involved. A lease is best. 

 

and in Hua Hin she would most likely be meeting me. 

[baansgr]

Any land ownership is reliant on Thais...no matter how exotic the setup sounds to protect you....you are at their peril always. Rent or buy a Foreign quota condo...

[BritManToo]

33 minutes ago, WhatsNext said:

 

I know the companies are illegal, however 90% of the houses here in Hua Hin are structured that way. A lease or usefruct is a possiblity but i dont want to be dependend on a TGF that could meet Brad Pitt one day and dissapear. 

Sadly i hate condo's.

Rent don't buy.

Or get her to take out a 95% home loan, and you make the repayments while you live in it.

 

[bkk6060]

I would never have anyone Thai on any of these type agreements. Especially a TGF..

Why are so many dead set on owning a house and adding all these complications?

And when the truth is told it is usually the Thai girls idea isn't it.

Rents are way down now my buddy got such a great monthly deal recently he actually structured a 3 year lease at about 1/2 the asking price.

 

 

[WhatsNext]

10 minutes ago, bkk6060 said:

I would never have anyone Thai on any of these type agreements. Especially a TGF..

Why are so many dead set on owning a house and adding all these complications?

Rents are way down now my buddy got such a great monthly deal recently he actually structured a 3 year lease at about 1/2 the asking price.

 

 

 

The house i am interested in does 70k in rent at the moment, well at least that is the asking price from the project. Buying is 11M. It just makes economic sense. If i could rent the place at half price i wouldn't even think a second about buying it. It's not the girl that is pushing for it in my case. But ill check about the 3 year possibility, thanks for that.

 

And as for condo's : I can't live in those boxes, even the nice ones have 9 neighbors around them, always someone sneezing, music, renovations, walking with high heels and so on. It's a nightmare, for me at least.

 

[BritManToo]

2 minutes ago, WhatsNext said:

 

The house i am interested in does 70k in rent at the moment, well at least that is the asking price from the project. Buying is 11M. It just makes economic sense. If i could rent the place at half price i wouldn't even think a second about buying it. It's not the girl that is pushing for it in my case. But ill check about the 3 year possibility, thanks for that.

 

Choose somewhere cheaper ........ plenty of choices for 2Mbht.

My misses pals have a 100Mbht home, nothing special and they need to pay a full staff to keep it going.

[WhatsNext]

Just now, BritManToo said:

Choose somewhere cheaper ........ plenty of choices for 2Mbht.

My misses pals have a 100Mbht home, nothing special and they need to pay a full staff to keep it going.

 

Yeah of course i can buy a 700.000 townhome, but that's a very different living experience. I can also get a used honda click instead of a pickup truck... ????

[BritManToo]

6 minutes ago, WhatsNext said:

I can also get a used honda click instead of a pickup truck... ????

I have both, and a  Honda CB300F for when I don't feel like driving either of them.

Although my misses owns them all, not me, not a loss I'm particularly bothered about if it came to it, but an 11Mbht loss would hurt a lot more. The 250kbht deposit, and 11k/month repayments on her 3 bedroom house I've lived in for the past 8 years ..... she can have that too (although if I don't live in it, I won't be making any more repayments).

 

When it comes down to it,

If you spend 11Mbht on a house in Thailand, you're risking losing 11Mbht.

Clearly you are concerned with a loss of that magnitude, or you wouldn't be posting.

The only real way you can protect your money is by not bringing it to Thailand.

A 'good Thai lawyer' will sell you out to any other Thai in a second.

 

[Pilotman]

Waste of a post OP, as this forum, is stuffed full of the same questions. with hundreds of contradicting answers.   Get a good Thai lawyer and listen to what they have to say and not some back street one man band, but a large recognised firm, such as Siam Legal, although I have no mandate for them personally.  Definitely suggest you do not use a western lawyer, who may think he knows Thai law.  Few of them seem to actually know.  

[AlfHuy]

1 hour ago, BritManToo said:

Choose somewhere cheaper ........ plenty of choices for 2Mbht.

My misses pals have a 100Mbht home, nothing special and they need to pay a full staff to keep it going.

2,5 Million £ woww

 

Even some apartments in BKK are selling adobe 100 Million Baht.

Is BKK the new "New York" or central LONDON?

[NCC1701A]

1 hour ago, WhatsNext said:

 

The house i am interested in does 70k in rent at the moment, well at least that is the asking price from the project. Buying is 11M. It just makes economic sense. If i could rent the place at half price i wouldn't even think a second about buying it. It's not the girl that is pushing for it in my case. But ill check about the 3 year possibility, thanks for that.

 

And as for condo's : I can't live in those boxes, even the nice ones have 9 neighbors around them, always someone sneezing, music, renovations, walking with high heels and so on. It's a nightmare, for me at least.

 

you realize that almost every house in Hua Hin is empty at the moment. don't listen to any of the people involved in sales at these places. you are not in Kansas anymore. no laws. no legal recourse. no zillow. no comps. no MLS. no nothing. and get the girlfriend O.U.T. of the equation. 

 

1 hour ago, WhatsNext said:

The house i am interested in does 70k in rent at the moment, well at least that is the asking price from the project.

this is a lie. make them prove it. it will sit empty for years like all the others. 

1 hour ago, WhatsNext said:

Buying is 11M. It just makes economic sense.

no it does not. the house is worth half of that. good luck selling. it is all BS. 

1 hour ago, WhatsNext said:

If i could rent the place at half price i wouldn't even think a second about buying it.

I live in a three bedroom two bathroom dump in a very large private compound 100 meters from the ocean in Khao Takiap Hua Hin for 9000 baht a month. the landlord just lowered my rent. 

 

sorry to be so heavy but i am seeing the BS lies that come out of the real estate agents mouths here even today. good luck . 

 

 

[WhatsNext]

1 minute ago, NCC1701A said:

sorry to be so heavy but i am seeing the BS lies that come out of the real estate agents mouths here even today. good luck . 

 

No sorries, speak freely. If you live here you probably know the project and the prices there, its called 'The clouds'

[Delight]

 When  a house is acquired via a company (i.e. by a foreigner). The foreigner does not own the house and the foreigner does not own the company.

What he does own is his share allocation and 100% of the voting rights.

It is the latter that counts. The foreigner has control. It is control that counts.

Do not give your GF a share allocation. She will be convinced that she owns something of value . She does not.

If in the future should you wish to dispose of your assets you will simply transfer your share allocation and your voting rights to another foreigner. That other foreigner will become the new MD. You do this transfer for the price of the house.

The Land office and all the other shares are not involved. They stay where they were before.

If you give your GF 24% of the share allocation she will want 24% of the sales price. Her shares -to repeat myself-have not moved. They have not been sold. She is entitled to zero.

So my advice is have the argument with your GF now.

[WhatsNext]

1 hour ago, Delight said:

 A whole lot of interesting info

 

Thanks for this very clear explanation ????

[Destiny1990]

Better rent a house and see how that works out and or lease it with the poorly given 30 years.

 

[Delight]

On 3/6/2021 at 10:04 AM, Pilotman said:

Waste of a post OP, as this forum, is stuffed full of the same questions. with hundreds of contradicting answers.   Get a good Thai lawyer and listen to what they have to say and not some back street one man band, but a large recognised firm, such as Siam Legal, although I have no mandate for them personally.  Definitely suggest you do not use a western lawyer, who may think he knows Thai law.  Few of them seem to actually know.  

Just to add some clarity to your statements.

1) Lawyers are a protected profession in Thailand-Foreigners cannot be lawyers

2) Setting up a company for the purchase of a house purchase is just as much the commercial territory of an accountancy company as it is a law company. 

Given that this company will need to be audited in the future then for certain i would use accountants -not lawyers

[Airalee]

How much would I have to pay for the publishing rights for your future calamitous sob story?

 

I suggest that you sign up for some of the Facebook Huahin property groups so that you can see what things really rent for.  I can find nicer houses for ฿40,000 asking prices and they’d probably take ฿30,000.

 

Educate yourself.

[ctxa]

I too, looked last year into buying a villa in Hua Hin, as an investment. In order to rent it out at some point once tourism returned to normal levels. 

 

Eventually decided against it, as my wife is not Thai, I trust nobody else Thai, and none of the options given by law experts (aka lawyers) pleased me the slightest. Sad, because a house in Hua Hin is for damn sure a nice investment, but.... Hopefully someday they'll change the laws...

 

For you though, the situation is different, you have a Thai girlfriend.

 

You don't need to ask yourself whether your relationship will go down the drain or not, because you can't know what will happen, at best just a guess. What you really need to ask yourself is: if your relationship goes down the drain and you fully paid for that house, will your gf try to screw you and take from you whatever doesn't belong to her? Only you know this answer, and I am afraid that this answer is what matters most to making your decision. 

[WhatsNext]

7 hours ago, Airalee said:

How much would I have to pay for the publishing rights for your future calamitous sob story?

 

I suggest that you sign up for some of the Facebook Huahin property groups so that you can see what things really rent for.  I can find nicer houses for ฿40,000 asking prices and they’d probably take ฿30,000.

 

Educate yourself.

 

Right, if you can find a clouds or Banyan villa for rent for 30k you'd be the first. A 300m2 house on 900m2 land in a prime project , double glazing, solar cells, q block, roof isolation, infinity pool and fully furnished with build in furniture and 75 inch tvs, costs more than 2.89 million or 30k.

 

 

[WhatsNext]

6 hours ago, ctxa said:

 

You don't need to ask yourself whether your relationship will go down the drain or not, because you can't know what will happen, at best just a guess. 

That's what I'm trying to avoid, it's just better to keep her out of the equation all together hence my question about the company structure. Just like you i don't want to be dependent on any Thai for the, possible, resale in the future.

 

For other readers ; the house is for my enjoyment, not an investment, I'm well aware and prepared to lose some value at a sale

[CharlieH]

Golden rule here: NEVER spend or invest any more than you are prepared to walk away from.

 

The country, its immigration and political landscape is like soft ever shifting sand and is totally unpredictable and certainly unreliable.

 

 

[ctxa]

2 hours ago, WhatsNext said:

That's what I'm trying to avoid, it's just better to keep her out of the equation all together hence my question about the company structure. Just like you i don't want to be dependent on any Thai for the, possible, resale in the future.

 

For other readers ; the house is for my enjoyment, not an investment, I'm well aware and prepared to lose some value at a sale

In that case, if you wanna leave her out the equation. You have all those multiple options which involve either a company or lease contracts…. 
 

Which I don’t doubt that it would work, so many lawyers recommend it, and so many people have done it, over the years … It’s just that for my own personal taste, I don’t like things being done that way, and I consider it as a source of big headaches in the mid-long term. Hence can’t really offer much advice here. Except that I personally don’t accept that.

 

And it’s not that I can’t afford to lose 6-7M Baht if things turned out for the worst, what I don’t want is some low-life scumbag ending up legally living in a house which I paid for. I’d rather take the cash myself and set it ablaze than the latter ????

[TheFishman1]

Don’t do it just rent TIT

[newnative]

     Your girlfriend does not need to be one of the 2 Thais required to set up a company.  I would use a law office experienced in handling company setups and leave her out of it.  Or, if you want to use the real estate company, have them find the Thais needed.  Likely they have had foreign buyers that are single and they have done the company setups with 2 non-involved Thais.