Costs Of House Sale

[lovinglife]

I have just agreed a sale on my house in Pattaya, figure agreed is 3,500,000. I owned via my Thai Ltd Co.

What is the best way to complete the sale? The buyers are Farang with Thai wife.

1). Transfer company to her.

2). Transfer company to him.

3). Transfer house from company to her.

4). Transfer house from my company to a new company owned by him.

Or any other ideas? How much will the cost be?

[Boater]

are you both not using lawyers to complete the transaction?

[lovinglife]

Have sold through real estate office so they are handling for me, just wanted to check they were doing everything in MY best interest!

[chiangmaibruce]

Have sold through real estate office so they are handling for me, just wanted to check they were doing everything in MY best interest!

Your best interest is served by getting most of what you want in the context of a fair compromise that satisfies the buyers. What do YOU want? What do the buyers want? e.g. do you need a company for anything after you move? I assume it is not currently a 'real' business?

Why would you transfer the company to the Thai wife when the primary reason for going the company route is usually for the farang to (seek to) retain control of the asset?

You might need to provide some more details if you want to get more meaningful feedback

[Bagwan]

Have sold through real estate office so they are handling for me, just wanted to check they were doing everything in MY best interest!

It is an even money bet that whoever is dealing with this on your behalf is not a qualified, kosher lawyer. There are many shysters around pretending to be lawyers working out of estate agents/realtors offices; used to be many pretend doctors too. Do ask to see qualifications. I am advised by my own lawyer, that there are as many dodgy qualified lawyers as dodgy cops. He advises against giving any Thai lawyer Power of Attorney or appointing one to act as Executor of a Will.

I should have thought it was up to the buyer to decide how and to whom ownership is to be transferred. My understanding is that using shell companies is now illegal and has been the case for about 4 years. A Thai blind eye is turned to arrangements set up before that date. Your sole responsibility is to get the dosh – and then, and not until then, hand over the deeds.

I am told that it takes half a lifetime and much gold to close a Thai company down so if you can persuade your buyer to purchase your company (and thereby the property) so much the better for you.

[thaiwanderer]

The law has not changed to make ownership via a thai company illegal when before it was not as Bagwan suggests.

There has long been general prohibitions against farangs owning land (subject to very limited exceptions which hardly ever apply - BOI approval etc) and the use of nominees.

The tightening of the laws and practice concerning land and company registration (which are inconsistently applied) means more attention needs to be paid to the structuring of the company - so that others do not pay attention to it.

No matter what structure you use if (as is the likely aim) a thai company is used for a farang to secure effective ownership and control of thai land that is where it falls foul of the general prohibition in the strictest sense - anything else is just differing levels of disguise.

There are ways and means to avoid any investigation of the structure and to ensure if investigated the structure holds up (to the current level of thinking which may change) but its all shades of grey - there is no 100% certain way for a farang to effectively own land (subject to the minor execptions that do not apply in most cases).

If farang wants certainty Thailand is not the place.

However there are steps farang can take to ensure they are as protected as can be.

The ideal solution for the OP is a straight sale of an offshore company that (through whatever structure) effectively controls the thai land owning company. This would not involve any paperwork or monies in Thailand and has other advantages. However given the OP is asking I would imagine this exit strategy was not put in place at the outset. The time and cost of setting that structure now against the property price and the fact a buyer is waiting may mean its not a reasonable solution.

I don't know how hard the OP has had to look for a buyer and or the attractiveness of the property at the price but the OP should remember he/she chooses what and how he/she is selling. The seller can bend a little to this buyer's requirements (or likely requirements of any prospective buyers when going to market) but should not be dictated to.

The OP's aim surely is to make the sale at value and have a clean break from the property and company and any liabilities associated with them.

I would suggest the OP should sell the company with the property (why keep it?). Open negotiations saying its to be sold to a Thai national (hence the farang's wife)- if they refuse and want this sale now then agree can be sold to farang. However the practicalities of this and (in any event) of securing receipt of funds need to be thoroughly considered.

The first step however is to engage a decent lawyer - relying on the real estate agent and or their preferred 'lawyer' is NOT the way forward. They want the sale to go through and do not particularly care how.