Lease Of Condo To Thai Business?

[jonm66]

Hi Forum,

A Thai friend of mine plans to open a spa in a new condominium building. She has paid a 20% deposit but needs financing to complete the purchase.

I'm not looking for any direct involvement in the business, but would consider buying the property in my name and then leasing it to her.

The property title deeds clearly say "condominium". Both the building management company and the local land office confirm no problem in registering it in a foreign name.

However, the property itself is on the ground floor and clearly designed to be commercial space, not residential.

As Thai law allows a foreigner to own a condominium only for residential purposes, what is the legality of then leasing it to a Thai business?

Is this possible and if so, what's the best way to go about it?

Thanks in advance for any advice.

[trogers]

However, the property itself is on the ground floor and clearly designed to be commercial space, not residential.

As Thai law allows a foreigner to own a condominium only for residential purposes, what is the legality of then leasing it to a Thai business?

Is this possible and if so, what's the best way to go about it?

Thanks in advance for any advice.

Being on the ground floor is not an issue. Being a commercial space is.

First question - Is the condo development submitted in its original form and approved for construction with mixed space of residential and commercial?

If not, making some space commercial will probably face protests from co-owners.

Second question - If it was originally approved as mixed, why would the commercial space be deemed as residential condo space that is transferable to a foreigner?

Something is not right.