Media Scaremongers Will Hurt Property Sales More Than Interior Ministry Order

[jimbob]

As the last issue of Phuket Post was about to go to print, news that companies with a percentage of foreign ownership that wished to purchase land would now need to show how the finance for the purchase was acquired, was creating something of an uproar in the media. In fact, this is neither a new rule nor a new story.

More than a year ago, the revenue department announced that it would be cracking down on nominee shareholdings in companies with foreign interests and the regulation on full disclosure of financing for companies’ property purchases has been law for several years. The order signed by the deputy permanent secretary of the Interior Ministry, Surarat Thoingniramol, is intended to force the enforcement of that regulation.

Meanwhile the press has taken the opportunity to manufacture a scare over this, with one news agency quoting a lawyer as saying, "The property boom ended on May 25."

Such tosh belongs in a Hollywood movie, not coming from a member of the legal profession. Doom-laden rhetoric of this type serves nobody’s purpose and is, with the rare exception, usually thoroughly inaccurate. A more sensible approach would be one of acceptance with a nod to the Interior Ministry for taking this action.

Misinterpretations (through error or design) and non-enforcement of Thailand’s laws do no one – and certainly not the country – any good. How often have you heard foreigners opine the lack of the rule of law in some quarters? Yet, many of those same foreigners will be sucking their teeth over this move.

The not-so-historical evidence seems to indicate that the tightening of existing laws here has, in short order, led to improvements to the overall situation. As for instances, we offer the work permit issue, retirement visa problem and, most recently, the development of Thailand’s first legal acceptance of sail boats as pleasure craft. All started as quagmires of confusion followed by stringent adherence to existing law and eventually worked out nicely for everyone. It is very likely that the same is about to happen to the property industry – and about time too.

http://phuket-post.com/article.php?id=237

[jimbob]

I thought I would post this seeing the amount of nervous breakdowns everybody property related are having. I am far too poor to buy property here so remain unaffected but many friends are very worried about the situation. As usual in LOS it seems to be a case of huster and bluster, but this time it is by the media rather than the politicians.

[Thaiquila]

I am not buying this and I will tell you why.

It was common practice by real estate developers backed up by Thai lawyers to convince farangs that these phony shell company setups were perfectly safe and perfectly legal (in a loophole kind of way).

Where is the so called "rule of law" now against those "salesmen" who sold who knows how many farang buyers a totally bogus bill of goods, sometimes involving their life's savings?

[jimbob]

I am not buying this and I will tell you why.

It was common practice by real estate developers backed up by Thai lawyers to convince farangs that these phony shell company setups were perfectly safe and perfectly legal (in a loophole kind of way).

Where is the so called "rule of law" now against those "salesmen" who sold who knows how many farang buyers a totally bogus bill of goods, sometimes involving their life's savings?

I think there is a way to do it legally (ish) but many lawyers take a cheap and sloppy option when creating nominees. I know some people who are feeling very secure as they took a long time to set up their companies properly but I also know some people crapping themselves. My feeling is that the property industry is too big and important to be screwed around with. A lot of Thai developers are really worried so if they start hurting then this nonsense should come to an end.

[PeaceBlondie]

I think there is a way to do it legally (ish) but many lawyers take a cheap and sloppy option when creating nominees...[snip].. My feeling is that the property industry is too big and important to be screwed around with. A lot of Thai developers are really worried so if they start hurting then this nonsense should come to an end.

Legally(ish)? As in kinda, sorta, maybe, perhaps legal? With one of your largest investments of your life, is legalish possibly good enough? I had a second mortgage stolen from me, in a state where is was unheard of and totally illegal (in the USA), and recovered maybe 25% of my investment, after legal fees.

Legalish? Not good enough. If you love your wife and trust her 100%, just give the house to her and forget you ever thought that maybe you possibly might have owned it, -ish. Otherwise, RENT.

That's my arrogant-ish opinion.

[jimbob]

Hehe. Luckily (or not) this should not be a problem for me as I am skint. But if I wasn't I would have concerns about buying property in this country. Would I want to own property in a place that I had to leave every 90 days for visas? There are a few options for long term visas etc but the paperwork is just maddening. I think the visa situation and property ownership laws really should be revamped.