Lawyers And The "new Law"

[Major Major]

There is an enormous thread on the main site regarding foreign ownership of land. I would recommed anyone to read it if at all interested in this subject. Here is my 25 satang worth. As a farang working in a law firm in Samui, working with Thai lawyers, I can briefly say the following;

1. Foreigners cannot own land in Thailand.

2. The "new law" - inverted commas as it is not new law, simply an attempted implementation of existing law - is, it would appear to most informed commentators, there to stop foreign developers, not to stop Joe Smith buying his place in the sun. It does appear to have it's origins in Hua Hin, and hoteliers in tourist areas complaining that their occupancy rate is falling due to the proliferation of villas available to rent/buy.

3. The "legal loophole"...this was used previously on the 49/51% share company scheme...having had talks with the Land Office in Samui, companies properly structured on a 49/51 basis can still have land/property transferred to them. Land transfers, having stopped for a while, are now going ahead. Legally. The key to this is the prevention of foreign developers buying land, dividing it, and then selling it off. If you want to "own" a company, and buy Thai land, it is still possible. Whether you wish to take that route is a matter for you, a decision hopefully taken upon informed advice.

I sympathise with those who ask "what's going to happen?". The simple answer is, no-one knows for sure. If you wanted to be 100% safe, you would not buy in Thailand at all, save for a lease/condo. But people know there are risks. At my firm certainly clients are told in no uncertain fashion. Buyers will continue to buy, for commercial profit, and/or to own their own place in the sun. It's up to you. The consensus is that Thailand will not kill the golden goose, and so new law will be passed (God knows when) to codify what foreigners can and cannot do. Probably some extension to the leasehold law.

Finally, a word about us poor maligned lawyers. If I can believe the comments on the main website, we are regarded as the lowest of the low. As a farang, I can only speak about my small law firm, and cannot comment upon the motives of the bigger international law firms moving here. I am here to give the best quality service I can, with the assistance of my hardworking, modestly salaried thai lawyers. Clients are made aware of the risks so far as we can advise them. The decision to buy is up to them. Contrary to popular belief, lawyers in Samui do not earn a fortune. If that was sought, we would move to Bangkok or some other jurisdiction. Like most people here, we are here to enjoy Samui life. I rent here, but would hope to buy in future. I can guess your hearts will be bleeding now, so I'll stop!

[tornado40]

Major Major thanks for the update. As in my case having bought in 2003 and lease the house from my Ltd Company - hoping for it to be 'secure' for myself and TGF for the future when I can retire to Samui

I am very interested like many others in what is going on. I fill more optimistic now than when the 'story' first broke

I certainly do not wish to worry my TGF - so still think that sitting tight is the right thing to do (of course keeping the audit accounts and tax requirment in order)

[eddy-ham]

There is an enormous thread on the main site regarding foreign ownership of land. I would recommed anyone to read it if at all interested in this subject. Here is my 25 satang worth. As a farang working in a law firm in Samui, working with Thai lawyers, I can briefly say the following;

1. Foreigners cannot own land in Thailand.

Hello ,

Many thanks for the well written unbiased opinion.Most replies are sent through biased glasses from people burnt from previous experiences or in the castle looking down on the people trying to get in.

Having been in the position where I was able to loses just a small deposit I have decided to do so and wait and see. Over the last few years people have come to realise that Thailand is a excellent development location, no taxes,easy laws ect. The cost of land has risen way beyond most Thais ability to buy and thas given the government a problem and caused resentment from the Thais.I am from London, prices rose the same there, the same happened.I have decided to sit on the fence since I am sure this will blow over and 15 yrs time we shall look back and wonder what the problem was. But as for now I think the prices will hold for 6 months until a new directive or Law is passed.I do not want to invest in a property in a market that is stagnating.There will be a kick back from this since many developers have pre ordered meterials and have cash flows that the banks will need to see materializing, so there I also see problems in the short term.Ideally a new 99year lease would be ideal.Since there is no government this could take a time. As stated I do not think this is aimed at the retiree just the developers, the golden gooses is just having a holiday.