antbears Posted April 4, 2003 Report Share Posted April 4, 2003 I am just wondering if anybody has gone through the process of buying a house in Thailand. I have no idea what the legal issues etc are. Questions like do lawyers get involved are foremost on my mind. Do you get deeds for the property. I am buying a house in Phetchaburi. I provide the deposit and my wan jai is going to organise the mortgage. Where would one go to get information on this. Any board members bought property? Link to comment Share on other sites More sharing options...
khunsanuk Posted April 4, 2003 Report Share Posted April 4, 2003 Hi, I considered it, but the overwhelming advice seemed to be DON'T! You, as a foreigner, cannot own the house as far as I am aware. That to me was the dealbreaker. Sanuk! Link to comment Share on other sites More sharing options...
lopburi3 Posted April 4, 2003 Report Share Posted April 4, 2003 I will assume you are not Thai and that your sweetheart is. She will be the owner, after paying the mortgage. If the mortgage is by a bank are you sure she can qualify (not easy now - want to make sure you don't fork out a non-refundable deposit). If not from bank (and perhaps even if from bank) would advise having an independent lawyer check the paperwork as there is a lot of scams by real estate people. Basic is going to Land Office to pay transfer tax and change paperwork. The land title (deed) will remain with the mortgage lender until after full payment has been made. She should be very careful and everyone should know beforehand who is going to pay what during the transfer process. If this is family affair, with everyone known to each other perhaps the legal advise would not be required and everyone can go to the Land Office and do it. But if any doubt be careful. Link to comment Share on other sites More sharing options...
whosyourdaddy Posted April 4, 2003 Report Share Posted April 4, 2003 It is being easier to own property in Thailand since they revamped the laws.. Actually the company owns it and you own the company or a thai can own it and you can lease off the thail.. Takes some paperwork but quite do-able.. I will be buying in Oct so I will be right with you in the line up Link to comment Share on other sites More sharing options...
rickfarang Posted April 6, 2003 Report Share Posted April 6, 2003 You might want to take a look at this doucment on the Royal Thai Consulate Los Angeles web site, explaining foreign ownership of land in Thailand. http://www.thai-la.net/pr/land_eng.pdf You can own the house, but only in rare case can you own the land. There is little reason to own land in Thailand unless you are going to live in a place where ther are no rentals (some villages upcountry, for example), but when you buy, you are making a gift to your sweetheart and you loose the flexibility of living where you want. You might want to try living in Thailand for a few years before buying a house. There is no reason to rush -there is plenty of land. The scheme by which you set up a dummy corporation to own your house has some real risks - like if its a only a dummy corporation with dummy stockholders (yes, 51% or more of the company has to be Thai owned) to get around the 51% ownership requirement you could find yourslef in a pot of trouble once uncovered, and there was some talk a couple of months back of them intending to crack down on these dummy corporations. Also, a Tahi corporation has to submit tax returns and all this costs money. So.... I think the best advice for the general case isall is DON'T DO IT. I've been living in Thailand most of the time for over two years and although I get the itch to build a house "of my own", my experience of building two for Thai women and now having nothing to show for it but memories has made me wary. You might consider the possibility of this happening to you too. RickF. Link to comment Share on other sites More sharing options...
Guest Posted April 7, 2003 Report Share Posted April 7, 2003 I am just wondering if anybody has gone through the process of buying a house in Thailand. I have no idea what the legal issues etc are. Questions like do lawyers get involved are foremost on my mind. Do you get deeds for the property. Questions like do lawyers get involved are foremost on my mind. I own a condo, but I have PR status. Rather than trying to summarize my understanding of the law (before buying property anywhere, you'll want more than annoymous advice from a board dedicated to sanuk in Thailand), I will try to give you some more practical advice: Get a reputable lawyer that you can communicate with and understand. The big international firms are reputable, but probably outside your price range. I work for a bank, and I am constantly dealing with the big firms; most of them are good, but they don't provide legal services the way such services are delivered in the West unless Westerners are involved. I would be very careful about local firms. Someone above alluded to scams. This is a real problem. There are plenty of "real estate" service companies running all sorts of scams. Use a lawyer, and here is what I suggest for selecting one: First, talk to friends who have purchased condos, property, etc, and see who they used and whether they were happy with the service. Interview several firms; don't pick the first lawyer you talk with. Second, you need to be able to communicate with that lawyer. Buying property (and this includes condos) is not a mechanical act, but a serious transaction where you need to make decisions, and to make those decisions, you need to understand the risks involved. Foreignors cannot own land, but you can "control" a company that owns the land. You need to understand what that means, and what sort of risks that creates. You also need to understand if there are any liens, easements or other problems with the property. Third, and related to point number two, I suggest using a firm that has at least one Farang lawyer who has been here for at least 4+ years. And make sure that Farang lawyer is really a lawyer somewhere (e.g., U.S., Germany, Australia, U.K., etc.), and not just some property consultant. You want someone with legal trainning. You not only need someone who understands the issues, but can also help you understand those issues and guide you through those issues in some rational fashion. That is not easy to find here. Fourth, and this is the bad news, IMHO, there is a shortage of such talent in Thailand. Plenty of "consultants" and scam artists who claim they can provide advice (I saw an internet cafe at the corner of Sukhumvit and Soi 38 advertising legal services), but not many reliable, good lawyers for Farangs. Proceed carefully. Link to comment Share on other sites More sharing options...
antbears Posted April 8, 2003 Author Report Share Posted April 8, 2003 Thanks to all for the helpful comments. I am buying the house in Phetchaburi. It is part of a large development of about 300 houses. Most are already snapped up by business people and professionals. The company that is selling the land and building the houses is one and the same. They seem to be quite Ok and my tirac is very happy with them. She works in the area, so has local knowledge. Anyway as far as I can ascertain, the deal works like this. I have already chosen a site and now I must pay the deposit over 8 monthly installments. When I have finished this the house will be built . Then my tirac brings the papers to the bank who agree to give her a mortgage to pay the remainder. Shes very honest, so I am trusting her and besides shes hardly going to run away, she lives and works in Phet, good government job. So I am still running around looking for problems. I take the points raised about getting proper legal advice and legal representation to conclude the deal. We are getting married in July so I have to check out the legal implications of this for both of us vis a vis the proerty. I am not too keen on going through the setting up a company route. Thanks again for all your help and if anybody has any more helpful advice please feel free to do so. Link to comment Share on other sites More sharing options...
Guest Posted April 8, 2003 Report Share Posted April 8, 2003 you should also check the credentials of the developer. scams of developers who suddenly went broke or build the houses in substandart conditions are plenty here. maybe go and find out about finished projects of that developer and speak with the people who live there about their experiences. Link to comment Share on other sites More sharing options...
khunsanuk Posted April 8, 2003 Report Share Posted April 8, 2003 Hi, "Shes very honest, so I am trusting her and besides shes hardly going to run away, she lives and works in Phet, good government job. So I am still running around looking for problems." Uh, she would not have to run away if the house and the land will be in her name, which is very likely. Not saying (or even suggesting) she will of course, just a little head's up. Also agree with Fly with regards to the material. I have seen houses here with big cracks in the walls, within 1-2 years after being build. Sanuk! Link to comment Share on other sites More sharing options...
lopburi3 Posted April 8, 2003 Report Share Posted April 8, 2003 Anyway as far as I can ascertain, the deal works like this. I have already chosen a site and now I must pay the deposit over 8 monthly installments. When I have finished this the house will be built . Then my tirac brings the papers to the bank who agree to give her a mortgage to pay the remainder. Why would any bank provide a mortgage on an unbuilt property after having the loss they have had on fully built properties? The banks have a huge inventory of homes for sale and are not lending much these days at all. What is your hurry? Take a little time to learn what is going on first. Rents are very low here. If she buys property it is hers alone and you have no claim on it so there is nothing to check that I can see. My advise, and believe most people would agree, if you plan to buy a house here make sure it is already built. Link to comment Share on other sites More sharing options...
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