Land Department Latest Order

[beginner]

Pattaya Expat magazine 16-30 Sept 08 contains an article by Mr Kamnod Soponvasu of Thai Legal and Associates.Pattaya.

It summarises an Official Land Department circular letter marked Most Urgent, sent on 21st July 2008 to all Provincial Governors regarding 'the registration of land ownership or buying land for the benefits of foreigners by using company's name or having a Thai national as a shareholder nominee in the company'.

It outlines four items that will lead to the refusal by the Land Official to register such an application.

The author notes that the measures are almost the same as Foreign Business Act which was postponed last year. "Meanwhile the above measures are temporarily put in use prior the enactment of the Foreign Business Act".

[beginner]

The four items are

1. Check business objectives of the company. If it is found that the company is doing real estate business while there is a foreigner holding company shares together with some Thai nominees or there is a foreigner being a director of the company, the Land Official will investigate to a source of the investment of the Thai nominees. However, the Land Official will refuse to register of such an application by practice.

2. It is appearing that the company was organised by a foreigner or appearing his name in the company's memorandum or appearing his shares being preference shares having majority right to vote in the company or there is a Thai lawyer or Broker holding the main shares in the company, The Land Official will investigate to a source of the investment in such company.

3.It is a requirement that the registered capital of a company must be more than the purchase price of any property. Otherwise, the Land Official will investigate to the source of the investment.

4. In case a company leases a piece of land in a long term basis, investigation will be made to proof whether the land lease is made to benefit or the company is holding the property to the benefit of any foreigner.

Edited September 21, 2008 by beginner

[jumnien]

Great news! This should make second hand houses more affordable. Finally some good news on the financial front!

[thaigene2]

What I still don't understand about this 'foreigner doing real estate business' thing is this...

Does this mean that a foreigner who runs a business but uses the business to buy property in a company name -- does that make him a 'foreigner doing real estate business' ?

Or...do they mean they want to shut down real estate development companies who are trying to buy up land to develop then sell? E.G. Developers?

Anyone know?