Building house on leased land in Chiang Mai - questions

[nakhe]

Hello all, first post.

 

I am a foreigner looking to find a home for my parents who want to live in Chiang Mai long term.

 

They have scouted the place and want to lease a plot of land in Kool Punt Ville Project 9 (?) and build a house on it. They say that it will cost approx THB 3,750,000 total. I am more than happy to cover any cost, but I don't understand what they're trying to explain to me in terms of the land. They say that the land will be leased for 90 years (30yrs x 3) from 2017 and can be extended indefinitely. They say that the lawyer will draw up a contract which will state that "the land-owner is borrowing money from [my parents] with land as the collateral" (???). The house however will be owned by my parents. 

 

My understanding is that foreigners can not own land in Thailand, but can own condos and (by a recent change in Thai law in the last 1-2yrs) houses. I feel that owning a house on land that is not yours is a huge risk. The land-owner can at any time do whatever he wants with the land, along with the house on it, right?! 

 

If building a house on leased land is not a safe option, what other options may be viable for my parents who want to spend their geriatric lives in Chiang Mai?

[trogers]

Maximum lease period allowed by law is 30 years!

 

Anyone promising a period longer than that is offering an illegal contract that is deemed void from the time it is signed, and you cannot bring the contract to the courts and get it enforced.

 

Don't pay money for an illegal contract.

[nakhe]

From my reading it seems that way! I am wondering if everything will be better if I just offer to pay rent for them for the rest of their lives instead of having to deal with all this legal crap! 

Edited October 8, 2016 by nakhe

[blackcab]

I would really considering renting somewhere nice. While it's not ideal to move, they could if there were unforseen issues in the future. 

 

As stated the maximum term of any lease is 30 years. Lawyers have tried the 30+30+30 route and it has been found unsatisfactory by the Courts.

 

Believe me, if you find a nice property a good owner would count their blessings to have good, responsible long term tenants who look after the property and pay regularly. 

 

You could discuss things like decoration, etc with them. A good landlord would be flexible about things like this, allowing your parents some personalised touches.