Lease Agreement With Purchase Option Over 30 (or 60 Years) - Please Help

[rsraleigh]

Hi Everybody,

Thanks for looking at my message.

I have a doubt...can I make a contract where I rent the land or (pay the land already) today at today's market price today for 30 years, and in the contract it is stated that if during this 30 years I manage to be able to get the property on my name (i become thai), or get omebody (thai friend, thai gf, thai soon/daughter) or company they HAVE to "sell"/transfer to them (since I already paid the market price to them)?

I am not sure if I am clear, basically ... I am thinking on arranging to pay the owner the money he/she is asking today for the land, and make a contract where he/she retains that land during this time until I can put it on my name, or if that is the case until I made him transfer to a third person.

Is that possible? Any experience on that?

Many many thanks

R

[skybluestu]

Hi Everybody,

Thanks for looking at my message.

I have a doubt...can I make a contract where I rent the land or (pay the land already) today at today's market price today for 30 years, and in the contract it is stated that if during this 30 years I manage to be able to get the property on my name (i become thai), or get omebody (thai friend, thai gf, thai soon/daughter) or company they HAVE to "sell"/transfer to them (since I already paid the market price to them)?

I am not sure if I am clear, basically ... I am thinking on arranging to pay the owner the money he/she is asking today for the land, and make a contract where he/she retains that land during this time until I can put it on my name, or if that is the case until I made him transfer to a third person.

Is that possible? Any experience on that?

Many many thanks

R

Mai Kao Jai

[rsraleigh]

What is that you dont understand? The whole concept or just parts ...

RIght now asking merely if I can payfor the land and make the land-owner stand still with that land until I am able to own the land, or I just transfer to someboy it can own the land ...

Thanks

[quiksilva]

I have a client (a well known multinational corporation) who has a 30 year lease who included a clause within the lease agreement that enabled them to purchase the land for a nominal sum, at some point in the future.

The lease was registered, so this should cover you, but again you will need to seek the advice of a legal expert to work out the details to protect your interests and to examine whether it will be enforceable.

[thaiwanderer]

Typically its worded along the lines that the lessor agrees to transfer the freehold to the lessee if there is a change in the law to allow the farang to become freeholder, if the farang is otherwise allowed to become the freeholder or if the farang wishes to nominate somebody else (e.g. thai individual / thai company) to be the freeholder.

However you should obtain expert legal advice on the correct wording and the current attitude to such clauses by the local land office officials.

Registering leases with such a clause can encounter difficulties if the official views the lease as a way to circumvent the prohibition against farangs owning land (which of course no lease ever attempts!).

Difficulties in this regard usually revolve around the transfer to freehold being for nil value regardless of it notionally being included in the inflated farang lease price that will be paid.

Assuming you abtain the correct advice on the best way to word it so that it satisfies the official (and satisfes your needs) you may then have a lease which will allow conversion to freehold.

Of course that is a contract with little or no case law backing it up at this stage and regardless of what it says when the time comes you will be relying on the lessor not having sold / transferred the land to someone else and in all other respects be willing to play ball.

You can do all you want to have renewable leases, conversion to freehold etc. but whether you can rely on them is uncertain so go into it hoping to attach these attractive add ons but don't actually rely on them!