Less Than 50% Foreign Ownership

[fanciman]

Lets say you buy an apartment in a building and at that time, sure, <50% are foreigners.

But then, over time, people sell their apartments. The owners don't care who buys it, farang or thai. Couldn't you easily end up in a predominantly farang owned building?

What would happen then? Would you lose your rights to the property?

[misterman21]

Good point i asked this question many years ago! I am still waiting for an answer from: an american lawyer, a german lawyer, the condo (i was looking to buy in) manger, and so on.

My concerns where as yours - if i bought outside the 49% ratio and this wasnt picked up at the land office then what happens in a few years when someone decides to open the books?

Everyone i asked just skirted the issue - an i never did ge t a clear answer!

[sweetchariot]

Officially the Thai owned 51% can only be sold on to Thais, but this is Thailand and the rules are not always followed. There was a rumour a while back that a very well known condo development was actually 68% farang owned.

I think if a building became majority foreign owned, the owner would have to buy back the necessary units until less than 50% was foreign, which would be done through natural turnover rather than compulsory purchases.

[Gary A]

When you want to buy a condo in your name, the condo association is required to furnish information stating what percentage is foreign owned. If the foreign ownership exceeds 49 percent, you will NOT be able to purchase the unit in your name. You will NOT find a complex that exceeds 49 percent foreign ownership.

[Irene]

Lets say you buy an apartment in a building and at that time, sure, <50% are foreigners.

But then, over time, people sell their apartments. The owners don't care who buys it, farang or thai. Couldn't you easily end up in a predominantly farang owned building?

What would happen then? Would you lose your rights to the property?

Once you are an owner of an apartment registered under a foreign quota, then you are an owner for life. No dispute can be taken against your ownership since your quota is already registered. Any changes of the foreign ownerhip, the Land Department and the juristic body of the condo would have to make sure that the proportion does not exceed 49%. It is not your duty to ensure that.

For example, if you sell yours to a Thai when the foreign quota is full, then you open ways for another foreigner to buy from any Thais for one slot of a foreign quota that you have given up. So watch out for this quota because you can sell for a premium to another foreigner instead of to a Thai.

[tominchaam]

When you want to buy a condo in your name, the condo association is required to furnish information stating what percentage is foreign owned. If the foreign ownership exceeds 49 percent, you will NOT be able to purchase the unit in your name. You will NOT find a complex that exceeds 49 percent foreign ownership.

Sorry Gary - but Irene is correct. I know about another juristic person where foreigners percentage exceeds 65% of the total area. What you write is correct as well. But when a juristic person gives information that is false and this information is accepted by the Land Office you get a situation like the one described by Irene. Are you really surprised - I am not even if I dislike it a lot.

[PattayaParent]

What about in the crash of 97 when some condos were allowed to have 100% Farang ownership?

So surely there ARE some condos out there that DO have more than 49% Farang legally, or were the owners of these over percentage units forced to sell to Thais when they wanted to sell their units?

[tominchaam]

Information from Land Office http://www.dol.go.th/eng_version/menu.php

Acquisition of Condominium Unit by Alien

Previously, an alien could have ownership in a condominium unit or bought a condominium unit in each condominium in a proportion not higher than forty percent of the total space of all units in that condominium at the time the application for condominium registration had been lodging. Later, on April 28th, 1999, the Condominium Act was amended to facilitate an alien in the purchase of condominium unit. As such, an alien may have ownership in a condominium unit in a proportion not higher than forty nine percent of the total space of all units in that condominium at the time the application for condominium registration is being lodged. The amended Act also provides that an alien may have ownership in a condominium unit exceeding forty nine percent if the following rules are satisfied:

1. Such condominium shall be situated in Bangkok Metropolis, municipality area or other local administrative area i.e. the Pattaya Ciity;

2. The total area of the land on which a condominium is situated, when combined with the land provided for common use or benefit of all co-owners, shall not exceed five rai;

3. Such condominium shall accommodate not less than forty condominium units;

4. Such condominium shall be registered not less than one year prior to the date an alien applies for ownership in the condominium unit;

5. Such condominium shall not be situated in the area of military safety zone under the law on Military Safety Zone;

6. An alien shall utilize a condominium unit in a way that is not contrary to the local custom or good living of the local community;

However, in a five year term as from April 28th,1999, the rules concerning the acquisition of ownership by an alien in a condominium unit in a higher proportion than forty nine percent shall take effect. After that it shall be repealed, and the alien obtaining an ownership in this regard and the alien receiving an ownership in a condominium unit transferred by the former are allowed to continue holding the ownership in that condominium unit even in a higher proportion than forty nine percent.

[sweetchariot]

Great stuff Tominchaam, really useful info which explains alot of the anomalies many posters have experienced.

[egg6447]

Officially the Thai owned 51% can only be sold on to Thais, but this is Thailand and the rules are not always followed. There was a rumour a while back that a very well known condo development was actually 68% farang owned.

I think if a building became majority foreign owned, the owner would have to buy back the necessary units until less than 50% was foreign, which would be done through natural turnover rather than compulsory purchases.

and the owner being???? if this is happening the land office is obviously turning a blind eye. alls well till they deside to enforce the law as usual.

[PattayaParent]

As posted by Tominchaam

However, in a five year term as from April 28th,1999, the rules concerning the acquisition of ownership by an alien in a condominium unit in a higher proportion than forty nine percent shall take effect. After that it shall be repealed, and the alien obtaining an ownership in this regard and the alien receiving an ownership in a condominium unit transferred by the former are allowed to continue holding the ownership in that condominium unit even in a higher proportion than forty nine percent.

As I said there ARE some condos out there that DO have more than 49% Farang ownership legally.