House And Ownership Requirements

[SpaceKadet]

Some nice houses guys. But tell me, how do you structure the ownership of the property? I have been avoiding buying property in Thailand because of all the ownership restrictions for foreigners, but now Khun Wife is digging in the nails so will not be able to avoid it for much longer.

So what do you do to avoid problems? Let the wife buy land and lease it from her? Set up a company to hold the property? Or do you just trust your wife and let her own everything in her name?

Had a bad experience couple of years ago. A good friend of mine, married to a Thai lady, lost everything. They bought something like 25 rai of prime land somewhere around Pitsanulok, buid a nice house, all in wife's name of couse. Decided to move permanently to Thailand, wife moves first to start up their future business, and my friend is to follow in less than a year, once his work contract finishes. Three months down the road, his wife has a tragic accident. Day after cremation he goes to their house to find his wife's cusin sitting there with a policeman. He's being told to packs his bags and get the F... out of the house in one hour. The family never cared for his wife before, but now they divide all the land and are laughing all the way to the bank...

So how do you protect yourself from situations like this?

I thought this question worthy of its own topic, therefore I have moved the post into a new topic.

/thaivisa.com moderator

Edited February 8, 2005 by tukyleith

[tuky]

Spacekadet,

the house and land are all in my wifes name with my daughter on the will if anything should happen. My wife's family are very close so I am very confident that even if the worst did happen I would still be the father of my daughter and the son in law. If either I or my wife met someone else then as far as I am concerned the house is a start in life for my daughter, my wife feels the same way.

I guess it is a different situation for everybody so everyone would have a different plan. I say go with what you know, if your uneasy go the company route which will leave you in control.

There are a lot of guys on this forum who have experience with these matters, I hope they take the time to answer.

As for me, we are going to buy a series of condos and put them in my name, then we can truly divide by half if the worst should happen.

[hetchie]

Some nice houses guys. But tell me, how do you structure the ownership of the property? I have been avoiding buying property in Thailand because of all the ownership restrictions for foreigners, but now Khun Wife is digging in the nails so will not be able to avoid it for much longer.

So what do you do to avoid problems? Let the wife buy land and lease it from her? Set up a company to hold the property?  Or do you just trust your wife and let her own everything in her name?

Had a bad experience couple of years ago. A good friend of mine, married to a Thai lady, lost everything. They bought something like 25 rai of prime land somewhere around Pitsanulok, buid a nice house, all in wife's name of couse. Decided to move permanently to Thailand, wife moves first to start up their future business, and my friend is to follow in less than a year, once his work contract finishes. Three months down the road, his wife has a tragic accident. Day after cremation he goes to their house to find his wife's cusin sitting there with a policeman. He's being told to packs his bags and get the F... out of the house in one hour. The family never cared for his wife before, but now they divide all the land and are laughing all the way to the bank...

So how do you protect yourself from situations like this?

I thought this question worthy of its own topic, therefore I have moved the post into a new topic.

/thaivisa.com moderator

<{POST_SNAPBACK}>

[Digger]

Some nice houses guys. But tell me, how do you structure the ownership of the property? I have been avoiding buying property in Thailand because of all the ownership restrictions for foreigners, but now Khun Wife is digging in the nails so will not be able to avoid it for much longer.

So what do you do to avoid problems? Let the wife buy land and lease it from her? Set up a company to hold the property?  Or do you just trust your wife and let her own everything in her name?

Had a bad experience couple of years ago. A good friend of mine, married to a Thai lady, lost everything. They bought something like 25 rai of prime land somewhere around Pitsanulok, buid a nice house, all in wife's name of couse. Decided to move permanently to Thailand, wife moves first to start up their future business, and my friend is to follow in less than a year, once his work contract finishes. Three months down the road, his wife has a tragic accident. Day after cremation he goes to their house to find his wife's cusin sitting there with a policeman. He's being told to packs his bags and get the F... out of the house in one hour. The family never cared for his wife before, but now they divide all the land and are laughing all the way to the bank...

So how do you protect yourself from situations like this?

I thought this question worthy of its own topic, therefore I have moved the post into a new topic.

/thaivisa.com moderator

<{POST_SNAPBACK}>

My preference is for company ownership everytime. If I had a child, I would actually make a provision in my will that they received my shareholding. I am not married but would not put any assett over say 1,000,000 baht in my wifes name. Not because I would not trust her - but to avoid all the problems if s**t happens like the scenario you described. My Girlfriend has always said to her family that companies own our properties not her. They may think I am a cheapskate for not putting them in her name but she is completely cool with it and also recognises that when we have sold our interest in the companies (i.e the house) that property transfer taxes are not payable as the company still owns the asset - only thing that changes is the director(s) with control over the company and its assets.

[trajan]

My preference is for company ownership everytime.  If I had a child, I would actually make a provision in my will that they received my shareholding.    I am not married but would not put any assett over say 1,000,000 baht in my wifes name.  Not because I would not trust her - but to avoid all the problems if s**t happens like the scenario you described.  My Girlfriend has always said to her family that companies own our properties not her.  They may think I am a cheapskate for not putting them in her name but she is completely cool with it and also recognises that when we have sold our interest in the companies (i.e the house) that property transfer taxes are not payable as the company still owns the asset - only thing that changes is the director(s) with control over the company and its assets.

<{POST_SNAPBACK}>

I agree totally. Establish a holding company and hold real property under that entity. I even have some condos under holding company structure (even though I can own them directly) so I can transfer shares to family in the future (instead of transferring the condo title). Holding title in wife's name is plain silly....bad things happen like wife dies and relatives take over, wife finds new bf, etc.

[PalmTrees]

Hi,

I totally agree with the last couple of posts, I would strongly advise forming a thai company to protectl all assets as Thai law is very complex, this also saves on the complications should anything unforeseen happen.

With our new builds we always offer this service as standard as we feel this is the most protected way for foreigners to purchase property legally in Thailand.

Obviously the decision is down to the individual, but for what my opinion is worth I would definitely recommend the above!

Hope this helps

[stevehaigh]

go company! it's cheap, simple and is safer than the girlfriend/wife lease back.

i have it set up so i get one vote/share and the 51% thai shareholders get one vote for 10 shares so they can't get together one day and kick me out.

steve

[Jai Dee]

There have been a number of discussions on this same subject on TV forum like this and this one.

But I too am confused by the opinions...

One I read which seemed quite sensible was to form a company to purchase the land, then loans the money to the Thai wife for purchasing the house. The company holds the deeds of the house and land as security against the loan.

Does this make sense?

What about 30 year lease back options?

[Krub]

There have been a number of discussions on this same subject on TV forum like this and this one.

But I too am confused by the opinions... 

One I read which seemed quite sensible was to form a company to purchase the land, then loans the money to the Thai wife for purchasing the house.  The company holds the deeds of the house and land as security against the loan.

Does this make sense? 

What about 30 year lease back options?

<{POST_SNAPBACK}>

I liked the idea of a 30 years lease registerred on th land deed with a further 30 years (you cannot register this one) as a private agreement.

Then make sure you register the house under your name

[duncan]

from new member, I am in the process of buying property land included over 15 years with my Thai wife. We have only paid 10,000 bht to secure the plot but have a meeting with the bank soon. We are both working full time.

How do I protect my investment

[bkk_mike]

I just left it in the wife's name - but then we have 3 kids so if something terrible were to happen to my wife, I'm fairly sure my kids would let me stay.

[Khun Jean]

With our new builds we always offer this service as standard as we feel this is the most protected way for foreigners to purchase property legally in Thailand.

Not picking on you personally!

I hope you also tell them that this company needs meetings, bookkeeping, making a profit, pay taxes. Because if a company doesn't do this it will look suspicious and be considered a way of circumventing the landownership laws. If that is the case, deportation large fines and more trouble.

Be very prepared when you go this route, many people who sell only care about the sale, not what will happen to you afterwards.

Leases are ok if you accept that after 30 years you have to move out, or pay for another 30 years against a highly inflated price of course.. Leasing from your wife is not allowed. Forget about the extensions. What do you think will happen after 30 years. The owner has 2 choices, giving you another 30 years against a fixed agreed upon price. Or just conveniently forget about it and raises the price 10 times. The extensions are not enforcable, they are not even registered!

People are right about the company route, just don't forget it is a company with all things that come with it. Run it like a company, make profit, very important, pay taxes. If you do that it will be oke. But how many people who already bought and are buying now really know that?