Can a foreigner buy this shophouse?

[Goodboybkk]

Dear all,

 

Can a foreigner buy this around 1 million baht shophouse?

[metisdead]

Moving to the Real Estate forum.

[proton]

No, unless you buy the structure and a Thai buys the land, messy

Edited April 6, 2023 by proton

[FritsSikkink]

Your company can buy it (of which you own 49 %, unless you are from the USA), but as you don't own the land you could have a major headache if the landowner sell his land.

 

[KhunLA]

No

[JeffersLos]

Thankfully not. 

[HuskerDo2]

A better question is "Why would a foreigner want to buy this around 1 million baht shophouse?". Looks like a dump.

[NightSky]

Your Ltd company could look into buying it. Don’t let neigh sayer's stop you pursuing your ideas. You already know any investment or business venture has risks. Good luck ???? 

Edited April 6, 2023 by NightSky

[hotchilli]

11 hours ago, Goodboybkk said:

Can a foreigner buy this around 1 million baht shophouse?

Sure you can buy it.

You can buy the shop-house with only 49% ownership in your name, 51% must be Thai owned

But the original owner will own the land it sits on, you cannot own the land [freehold]

If you want to go ahead then make sure you have everything buttoned up long-term ie 30 years with a solid contract.

Other wise rent a shop... best option

if things don't work-out or get messy in the future you just relocate.

 

[KhaoYai]

9 hours ago, FritsSikkink said:

Your company can buy it (of which you own 49 %, unless you are from the USA), but as you don't own the land you could have a major headache if the landowner sell his land.

 

???  If he forms a Thai Ltd Co. The company can own the land and the building that sits on it.  The company can be structured in such a way that his shares are the only ones that carry the ability to control the company so in effect, he would be the owner. The % of the company shares in foreign ownership may be less at some Land Offices. That is not much of an impediment as things stand currently as long as the company is structured properly.  A decent Thai lawyer will know how to do create such a company.

 

However, to be legal, the company needs to actually trade - not one of those flaky ones that just pay tax.  If held up to scrutiny, the company should also have a reason to own the land. If it can be shown that the company was solely formed as a way for a foreigner to own land - then its illegal.

 

As this is a commercial property it would be reasonable to assume that the OP plans to start some kind of business and therefore, the company that he controls can legally own this property.

 

This is very different to those who form a Thai Ltd Co. that doesn't actually trade but pay an agent to concoct accounts each year and pay a little tax. Many do that and don't get caught but it is, nevertheless, circumvention of the Thai Land Laws which is specifically dealt with in the act.  They may or may not get caught but they are never secure.

Edited April 7, 2023 by KhaoYai

[scorecard]

10 minutes ago, KhaoYai said:

???  If he forms a Thai Ltd Co. The company can own the land and the building that sits on it.  The company can be structured in such a way that his shares are the only ones that carry the ability to control the company so in effect, he would be the owner. The % of the company shares in foreign ownership may be less at some Land Offices. That is not much of an impediment as things stand currently as long as the company is structured properly.  A decent Thai lawyer will know how to do create such a company.

 

However, to be legal, the company needs to actually trade - not one of those flaky ones that just pay tax.  If held up to scrutiny, the company should also have a reason to own the land. If it can be shown that the company was solely formed as a way for a foreigner to own land - then its illegal.

 

As this is a commercial property it would be reasonable to assume that the OP plans to start some kind of business and therefore, the company that he controls can legally own this property.

 

This is very different to those who form a Thai Ltd Co. that doesn't actually trade but pay an agent to concoct accounts each year and pay a little tax. Many do that and don't get caught but it is, nevertheless, circumvention of the Thai Land Laws which is specifically dealt with in the act.  They may or may not get caught but they are never secure.

Who owns the land right now?

 

At original development was the land (just for this shophouse) transferred to the current 'owner'?

In other words can the 'seller' produce a chanut which is specific to the land where this shophouse sits and does the chanut, on the back, state that te 'seller' owns this specific piece of land?

• -If the answer is YES then what is the specific/documented arrangement should other 'owners in this block decide they want to demolish the building?
• -If the answer is NO then what exactly is for sale and how is it documented? And is the 'seller' entitled to 'sell'?

 

Who exactly is selling this 'property'? Can the 'seller' sell the land specific to the shophouse

[BKKBike09]

11 hours ago, Goodboybkk said:

Dear all,

 

Can a foreigner buy this around 1 million baht shophouse?

You realise it doesn't have any internal staircases? That's kinda odd (not to mentioned inconvenient) for a 3-storey shophouse ... 

[Kwasaki]

Seen the Thai partnership working but not always a financial bear trap IMHO, up to you as they say here. 

[khunPer]

You can buy it, but you cannot own the land under the house, so you need to find a Thai to transfer the property to.

 

An alternative is a company limited as owner, an often used method, but not without expenses and sometimes headaches also, if you don't get the set-up right from the beginning. There are several threads in the forums about using a Thai company limited as owner of property...????

[KhaoYai]

12 hours ago, scorecard said:

Who owns the land right now?

 

At original development was the land (just for this shophouse) transferred to the current 'owner'?

In other words can the 'seller' produce a chanut which is specific to the land where this shophouse sits and does the chanut, on the back, state that te 'seller' owns this specific piece of land?

• -If the answer is YES then what is the specific/documented arrangement should other 'owners in this block decide they want to demolish the building?
• -If the answer is NO then what exactly is for sale and how is it documented? And is the 'seller' entitled to 'sell'?

 

Who exactly is selling this 'property'? Can the 'seller' sell the land specific to the shophouse

I'm not sure why you are quoting my post here.  Of course a buyer should check all the things you mention - I was just pointing out the legality.