Overseas Fund Transfer Document For Land Lease

[simon43]

I've leased a piece of land near to Phuket Airport where I'll build my new 'mini-resort'. The lease contract is for 15 years and is signed in my name.

Now I need to register this lease at the local land office. However, the land officer says that I must show proof of remittance of funds from overseas to pay for the lease.

But this land lease is not the same as a typical 30 year house lease, where all the funds for 'purchase' are paid upfront.

In my case, I pay the land rental on a monthly basis, and the source of those funds comes either from the profits of the business that will be built on that land, or come from funds that were realised when I sold my previous Thai business.

Can anyone advise me what aspect of Thai law requires that a rental fee be sourced from outside Thailand?

Thanks

Simon

[InterestedObserver]

See a recent topic from Isaanlawyers @ Link.

[simon43]

@InterestedObserver, yes I have read that link before, but I don't think it applies in this case .. because:

I am not leasing the land from my wife or initiating a mortage on the land. I have leased the land correctly, according to Thai law, in my name only, and it is Thai law which requires that I then register my lease with the Land Office, and pay the land tax etc.

This is not any attempt by me to circumvent Thai law regarding foreign ownership of land. The land is rented for legitimate business purposes etc.

I suspect that what the land office wants me to do is for my Thai wife to lease the land in her name (ie, no foreigner name is recorded on the Chanote as Lessee), and for me to have some form of contract with her, (although that situation would be closer to the details of IssanLawyer's post).

Since I previously had some 'problems' when leased land was leased solely in my (ex) Thai wife's name, I am not prepared to go down that route again, and simply wish to exercise my right as a foreigner to lease land in my name (which I have done), and for the Land Office to recognise my right to have that lease registered at their office, with my name recorded on the Chanote as the lawful Lessee.

Simon

[kimmy]

That link has nothing to do with this as there are no new regulations. The link, I believe not knowing, refers to the application of old, I believe 2008 regulations that specified the allowed content of a lease with foreigners involved. That is a different subject and the link should know that.

The Phuket land office is known the last years for asking for proof that you transferred the monies from overseas when registering a lease, but legally there is no regulation for them to do this, it is just local policy and you should be able to get around this, or just show the proof

[simon43]

@Kimmy, well since the lease stipulates that payments are to be made on a monthly basis, not as a single lump sum, that suggests that I would need to show proof of overseas payment for each month, for the next 15 years.

I don't think the Land Office intends this . This is a commercial business lease, not a lease to secure 'control' of a residential property.

I will probably try to register this lease later today at the Land Office, and see if I encounter any problems.

Simon

[stgrhe]

@Kimmy, well since the lease stipulates that payments are to be made on a monthly basis, not as a single lump sum, that suggests that I would need to show proof of overseas payment for each month, for the next 15 years.

I don't think the Land Office intends this . This is a commercial business lease, not a lease to secure 'control' of a residential property.

I will probably try to register this lease later today at the Land Office, and see if I encounter any problems.

Simon

If you haven't done it yet, why don't you try to talk to the head of the land office. He or she might have a different opinion but do not blame your first point-of-contact - put it as a possible "misunderstanding".

[simon43]

OK, I'm happy to report that today, I was able to register this land lease in my name only.

The principal that for a foreigner to put his name on the Chanote as a Lessee requires remittance of funds from overseas was waived because the lease was being paid monthly, (not a lump sum payment), and I was able to show that the funds I was using came from the Thai business that I had just sold.

Actually, compared to some sessions that I've done in the land office before, this was smooth sailing and took about 2 hours from start to finish.

Simon

[TigerWan]

Hi Simon,

So what was the fee to register the lease? Interesting you are doing this as I too am seeking info on leasing commercially in Phuket, not far from the airport. Do they speak English at the land dept?

OK, I'm happy to report that today, I was able to register this land lease in my name only.

The principal that for a foreigner to put his name on the Chanote as a Lessee requires remittance of funds from overseas was waived because the lease was being paid monthly, (not a lump sum payment), and I was able to show that the funds I was using came from the Thai business that I had just sold.

Actually, compared to some sessions that I've done in the land office before, this was smooth sailing and took about 2 hours from start to finish.

Simon

[simon43]

Hi TigerWan, the fee was 1% of the total rent that is payable over the lease term, (the monthly rent and any increments being detailed in the lease contract with the landlord, and which is referenced in the land office paperwork.

No they do not speak English. It's all in Thai, so you need to speak Thai or take a Thai speaker with you.

I had been through this process many years ago when my ex leased land, so I generally knew the score. But I was not sure how they would react to a foreigner going through the same process with them

Simon

[thaiwanderer]

Simon, while having nothing to do with the Land Office's decision to initially ask for something that isn't required , if you don't mind me asking do you sublease to your business since you say the lease was in your own name?

[simon43]

@thaiwanderer, yes that is the plan. My business is a Thai limited partnership (me and my Thai wife), which will rent the land from me.

Simon