robaus Posted March 16, 2009 Report Share Posted March 16, 2009 A mate of mine (jing jing.. itâ??s not me) is already committed to buying a brand new condo in Pattaya but unfortunately it isnâ??t in the 49% foreign ownership quota of the building. He was going to put it in his Thai girlfriendâ??s name but he no longer trusts her completely since she lied to him recently. They are still together (2 years now) and may stay that way but in his words â??Something has changedâ?Â. The only alternatives I am aware of are: Company structure. 30 year lease. He says heâ??s heard of another arrangement: The condo is in his girlfriendâ??s name but she takes out a mortgage with him as the source of finance. If things go belly up, he can foreclose on the condo mortgage. Has anyone heard of this arrangement or know of a good lawyer who could advise on this? Thanks for your help. Link to comment Share on other sites More sharing options...
Mekong Posted March 16, 2009 Report Share Posted March 16, 2009 According to Foreign Business Act [color:brown]"Banking and finance businesses, under their own special laws, must be at least 75% Thai owned. Likewise companies engaged in domestic shipping must be at least 70% Thai. By regulation, insurance companies and insurance brokers must be at least 75% Thai."[/color] So it does look possible in theory but there is no advantage over the tried and tested Company Structure and 30 year lease where your friend will have 49% ownership as opposed to 25% ownership. Another consideration would be the amount of "Paid-Up Capital" required to be awarded a banking / financial licence. Link to comment Share on other sites More sharing options...
samak Posted March 16, 2009 Report Share Posted March 16, 2009 He says heâ??s heard of another arrangement:The condo is in his girlfriendâ??s name but she takes out a mortgage with him as the source of finance. If things go belly up, he can foreclose on the condo mortgage. you mean like he gives her a personal loan, she signs a loan agreement with the condo as security (i think mortgages you can only register if it is a house with according land, but not 100% sure; also never heard whether they would register a foreign source of funds)? probably not really safe. she can sell the condo and if he sue her, she would probably already have used all the money until they got to court! Link to comment Share on other sites More sharing options...
Dexi Posted March 16, 2009 Report Share Posted March 16, 2009 Maybe he could set up some kind of company with his gf as an employee getting a salary ....then she could go to the bank and ask for a mortgage loan based on her record of pay slips.... Link to comment Share on other sites More sharing options...
robaus Posted March 17, 2009 Author Report Share Posted March 17, 2009 Thank you all for your very helpful advice and your PM, Mekong. Yes, it could get very messy for a farng to sue a Thai when she's spent all the money anyway. Better for farang to maintain control as much as he can. My mate told me today he has a month's grace to decide on the structure, and that it looks as though the company arrangement is still the way to go. Link to comment Share on other sites More sharing options...
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