Condo In Company Name

[m62man]

I have been offered a condo in Jomtien at what seems a good price, but am told that it is in a Company name, rather than in the name of the English guy who lives there and is offering it for sale.

I have done a bit of research and my understanding is that any company has to be 51% Thai owned. If this is correct, then the price is 51% too much, as I would only be getting 49% of the property!

The other pitfall seems to be that I would need to check that the company accounts are up to date and any taxes paid. Have I got this right?

[jbaldwin]

You will be buying a minority shareholding in the company and entering into agreements with the other shareholder which give you effective control.

The key issue will be how to ensure that the company has no liabilities that you are not aware of.

[m62man]

Thanks, jbaldwin. It sounds like a bag of worms doesn't it? I presume the 51% shareholder has entered into a Trust Deed of some sort with the present owner to circumvent the restriction on foreign ownership, and as such it is very likely to be unenforeable if challenged. Also, as you say, the Company may have any number of liabilities which may not be immediately apparent. I think I'll give this particular opportunity a miss.

[MikeyIdea]

Forget the old company, that's someone else's responsibility to close. The condo itself may still be OK to buy, but do it clean, don't touch someone else's company. Some who have done it that way will probably post and disagree, the only thing I can say is: Why should you?

[PattayaParent]

You will be buying a minority shareholding in the company and entering into agreements with the other shareholder which give you effective control.

The key issue will be how to ensure that the company has no liabilities that you are not aware of.

AND to be aware of the company running costs that you will have to pay each year.

As someone said, if you're going to do it in a company name, do it in your OWN company name.

[craigt3365]

You can legally own a condo...right? So why go the company route????

[Penkoprod]

You can legally own a condo...right? So why go the company route????

If the total area of the condo building is at the limit of farang ownership "in his own name" ...which is 49%, you cant buy into the condo in YOUR own name is why

Penkoprod

[craigt3365]

Absolutely correct! I forgot!

Unless you really, really have to be in that condo, I would never go the company route....too much of a risk...even a new company that you setup. As has been discussed too many times, they are illegal. But others with much more knowledge than me can help you with that....

[InterestedObserver]

Companies owning condominiums is not illegal, just the nominee shareholder part is.

[rayong09]

Completely unnsseasry when their are literally thousands of condos for sale where you can put in your own name without the hassle of a shell company, accountants, the resale of it etc etc.

[torrenova]

I would want one hel_l of a discount if I were buying in a Thai name. I am no sure who I would ever be able to sell it to in the future !!! There would have to be a good rental market for it.