Land Subdivision & Lease Registration (phuket)

[tpkhk]

I purchased a townhome within a development on Phuket's west coast. The unit was handed over in Sept '07. Typical, 30 yr x 3 renewable lease for the land (convertible to freehold) and freehold basis for the structure from a well established developer.

Registration of the lease is only being done now, but the developer's legal department has now sent out a letter stating the following;

"We understand the land department is introducing a new regulation restricting the number of land leases which can be registered in projects developed under the Land Development Act. Consequently, if we apply for a land subdivision under the Act, then the number of buyers in the project who can register their leases in respect of the individual title deed issued for each plot will be limited to 30%".......

"After due consideration and legal advice, the developer has decided that they will not apply for a land subdivision for each separate plot within the project under the Act due to this new regulation. Instead, the developer proposes to register a partial land lease over the total project land (which has already been subdivided for each development) in which your property is situated. By having the land lease registered, you will be afforded the same rights and protection as would apply if the lease was registered over an individual title deed for each respective land plot...."

Under the Act, it is possible to perform further land subdivisions of the original project area title deed. However, this is limited to 9 plots within a 3 year period."

Question:

Does anyone know if this new regulation is true? Just limited to Phuket? I also heard that it is just the interpretation of the law that has changed?

As shown above, the developer is proposing is that instead of individual leases, they would like to register it as a partial sub-lease...so say 5 properties, 5 owners on a lease.... so with 100 homes, they are talking about 20 partial leases instead of 100 individual ones.

They say they'll eventually get to subdividing all partial leases...to individual leases, bit it could take 30 years or more @ 9/3 year period !

Any potential issues - with partial subleases.... instead of an individual lease?.... when selling etc?

Pls excuse the long post....and I realize aspects of this may be more appropriate for a real estate lawyer.

Thanks for any help, in advance