Pattaya house on company name - strange transfer

[WhatsNext]

Just a quick question : According to my lawyer the land office does not transfer land to a company where a foreigner holds 49% of the shares and is the sole director.

She will setup a company with 49% and all the voting rights on her, the second 49% on GF , 2% on somone i know. Then transfer the first 49% to my name straight after

 

According to her this is the standard way in pattaya at the moment.

Can anyone confirm this ?

[yeahbutif]

Don't shoot the messenger..but I thought you had to set up a company first to get a name of the company.then can buy house in company name..the process of getting a company name is how you say.but  the two Thai share holder's should not know each other.as one could sell their share to the other that person could have control of the company..

[WhatsNext]

No, the question is : is it normal practice for a lawyer to first register on the important 49% on the lawyers name, and then transfer that 49 to the foreigner. This on pattaya as the land office won't register otherwise

[yeahbutif]

We'll as far as I was aware the company was set up in my company name from word go.

[worgeordie]

What's the problem ,Thai lawyers are 100 % reliable and trustworthy ????

regards worgeordie

[scubascuba3]

Someone will give you a decent answer but if it doesn't happen see another lawyer, don't mention the first lawyer and ask them

[BritManToo]

1 hour ago, worgeordie said:

What's the problem ,Thai lawyers are 100 % reliable and trustworthy ????

regards worgeordie

...... and so are Thai gfs!

The OP has nothing to worry about at all.

[WhatsNext]

555 i knew it , all i wanted to know if this is standard in pattaya due to the land office. But nevermind I'll phone another one than the agency recommended lawyer office.

 

If there is someone in pattaya / huay yai with a recent house in a company, I'd love to know. 

 

If you want to rant about GF, lawyers, visa or the terrible kai pad , feel free as well...

[Susco]

4 hours ago, WhatsNext said:

No, the question is : is it normal practice for a lawyer to first register on the important 49% on the lawyers name, and then transfer that 49 to the foreigner. This on pattaya as the land office won't register otherwise

 

This is the practice in Pattaya for the past 10 years or so, as far as I'm aware.

 

They will not transfer to a company which has a large foreigner presence in the shareholdings.

 

So what the lawyers do is setup a company with very few or no shares held by a foreigner. Once the property is in company name, they transfer 49% of the shares to the foreigner.

[WhatsNext]

4 minutes ago, Susco said:

 

This is the practice in Pattaya for the past 10 years or so, as far as I'm aware.

 

Thank you so much ! This helps a lot.

[Destiny1990]

When is the housewarming?

[KKr]

10 hours ago, Susco said:

They will not transfer to a company which has a large foreigner presence in the shareholdings.

I bought land + house in CM and the rule was :

no foreign shareholding or directors allowed at the moment of purchasing a property.

 

suggest to protect yourself with an real encumbrance, (I did that) , shareholders agreement, loan to company secured by house, many possibilities.

[sead]

15 hours ago, yeahbutif said:

Don't shoot the messenger..but I thought you had to set up a company first to get a name of the company.then can buy house in company name..the process of getting a company name is how you say.but  the two Thai share holder's should not know each other.as one could sell their share to the other that person could have control of the company..

Cant agree more to this

[lanng khao]

1 hour ago, Destiny1990 said:

When is the housewarming?

When the central heatings turned on .

[WhatsNext]

7 minutes ago, sead said:

Cant agree more to this

 

Actually, this doesn't matter as they are shares without voting rights. ALL the voting rights are in the 49%. Actually you could have 99% Thai and 1% Foreign as long as all the voting rights are in the 1%.

[WhatsNext]

17 minutes ago, KKr said:

suggest to protect yourself with an real encumbrance, (I did that) , shareholders agreement, loan to company secured by house, many possibilities.

 

That's interesting, what did you put in the contract to secure it ? Thanks !

[KKr]

1 hour ago, WhatsNext said:

 

That's interesting, what did you put in the contract to secure it ? Thanks !

Usufruct (since the land already had a house) what is noted on the Chanote after the buyer. Usufruct expires after a period or upon passing on, so the company shareholders or the registered owner(s) would benefit.

Depending on the situation and the value of the investment, adding the Mortgage option could work to protect your estate, if you deem that necessary. 

[onekoolguy]

I'm not in Pattaya, but that's the way they just did mine.

[snowgard]

I never want do it in this way. 

Why? Just google: thailand+house+on+company+farang+scam

 

[WhatsNext]

8 minutes ago, snowgard said:

I never want do it in this way. 
Why? Just google: thailand+house+on+company+farang+scam

 

Yeah yeah the usual scare mongering in this forum, select last year instead of all time and you'll find 1 project with forest land. Educate yourself.

Plus i had a simple question, which is answered, now we can expect the 500.000 renters that wanted to buy but are afraid of everything. ????

[desert dueller]

19 hours ago, yeahbutif said:

Don't shoot the messenger..but I thought you had to set up a company first to get a name of the company.then can buy house in company name..the process of getting a company name is how you say.but  the two Thai share holder's should not know each other.as one could sell their share to the other that person could have control of the company..

AFAIK that is not possible as there always has to be a numeric majority of Thais vis-a-vis the foreigner(s) on the company. So if there is one foreigner (49%) there have to be two Thais (together 51%). I guess the Thais could arrange their 51% shareholding as they wish, but it will always be two persons. In case of two foreigners (totalling 49%) there would have to be three Thais involved (totalling 51%). 

[snowgard]

5 hours ago, WhatsNext said:

 

Yeah yeah the usual scare mongering in this forum, select last year instead of all time and you'll find 1 project with forest land. Educate yourself.

Up to you!!! It is your money what you will lost.

I saw more as one time <deleted> happens in my 35 years I come and live in Thailand.

At the latest, your bereaved will receive the big ass card if the lawyer wants to have his 25% -45% share paid out after your death.

But not all lawyers are that bad.

[WhatsNext]

8 minutes ago, snowgard said:

Up to you!!! It is your money what you will lost.

I saw more as one time <deleted> happens in my 35 years I come and live in Thailand.

At the latest, your bereaved will receive the big ass card if the lawyer wants to have his 25% -45% share paid out after your death.

 

......... 

[ericthai]

On 5/5/2021 at 5:59 AM, WhatsNext said:

No, the question is : is it normal practice for a lawyer to first register on the important 49% on the lawyers name, and then transfer that 49 to the foreigner. This on pattaya as the land office won't register otherwise

normal maybe, legal no way!

[Susco]

19 minutes ago, ericthai said:

normal maybe, legal no way!

 

100% correct.

 

Constructing a company with the only purpose of owning a house is illegal in Thailand, and of course land departments know this.

 

What lawyers do is a workaround, but doesn't make it legal.

[WhatsNext]

7 hours ago, Susco said:

What lawyers do is a workaround, but doesn't make it legal.

 

I know it's not legal, however the Thai government doesn't care as long as the money is coming in. Also i know countless people that use the same system here in hua hin, literally every house over 4 million is sold on a company to foreigners.

 

As for me personally ; if they ever stop the company system I'll transfer the house to the gf and lease from her.

 

Why I don't do this straight away : if the relationship goes sour, the company setup doesn't require her to agree when I want to sell, the lease does. 

 

Why Pattaya after hua hin ? : Hua hin has fantastic houses but that's really about it. It's very overrated, all IMHO of course

[rickthailand]

same practis in chiang mai. i had to do the same just remove the farang for a few days and after sale put him back.

[sead]

On 5/6/2021 at 3:14 AM, WhatsNext said:

 

Actually, this doesn't matter as they are shares without voting rights. ALL the voting rights are in the 49%. Actually you could have 99% Thai and 1% Foreign as long as all the voting rights are in the 1%.

There had to be some time that passes before you can convert the shares right? 

[WhatsNext]

1 hour ago, sead said:

There had to be some time that passes before you can convert the shares right? 

 

My lawyer says everything will take about a week to get everything from developer to the company and then change the 49% shares with rights from her to me. Pretty quick

[baansgr]

Yes, it's how they do it....you should ask yourself why?....