Buying a house in Thailand

Get an Expat lawyer involved - do not do this by yourself.

Currently, I own a condo in Phuket but it is a studio so rather
small and noisy during high season.
So a friend a Thai lady introduced me to her best friend that
has a house for sale. As most people know foreigners cannot
own property here but can own the house.

We went and looked at the house a 2 bedrm 1 bath single
level. It definitely needs some work as she had rented it out
several years ago but no one has lived in it for 4 years. The
ref needs to be replaced as does the gas stove. I would have
replaced the gas stove anyway

The bedrooms have really nice high end bedframe and closets.
The electric was on so checked the ac units they work fine and the
lights are ok.

It's in a nice quiet area in Kathu. It has the high ceilings that seem
to be popular with Thai people

I didn't mean for this to be a book but wanted to give details.
I am supposed to meet with the owner's lawyer a Thai person
to discuss the terms and deposit. They want 600,000 deposit
and will give me two months to sell my condo. They want 3.1M
for the house and it is on 144 sq m land size.

She said she could extend the two months for me getting my condo
sold. Of course I would want my deposit back if for some reason
I can't get my condo sold.

This would need to be in writing. Another point that is unclear is
since foreigners can't buy property then the land would be leasehold.
The owner wants her name free and clear of the property so my
friend would have her name as the name I would renew the lease
with in 30 years. That whole part isn't very clear to me. At 62 years
I can't see too much need at renewing in 30 but it may happen.
Certainly there needs to be an heir to the property in my passing.

I talked to a lawyer in my building and he thought going the route
of creating an LLC would be better than lease but it seems
complicated to me and after reading Jackthelawyer article on this
subject it brought up as many questions as it answered. No offense
intended to Jack

This all needs to be covered in the documents from the lawyer.
My best friend introduced me to the owner and I trust her but
still need to protect myself. The cost for the lawyer is 25,000.

Can anyone give input about what I should question, be aware of
or the best way to protect myself in this?

I apologize for the length of this
-@scbrock

Protect yourself? You wrote:

"so my friend would have her name as the name. I would renew the lease within 30 years. "

30 year leases are very common in Thailand. Is your friend just your gf?  If so, she's the one you need to be protected against. If you were happily married and trusted your wife, there wouldn't be any problem what so ever buying a house.

My advice to you is this

Do not trust any Thai women with the land lease . remember that any time she can replace you with a thai guy so do not fuck your self by trusting any women who act nice to you specialy thaies

My advice to you is this
Do not trust any Thai women with the land lease . remember that any time she can replace you with a thai guy so do not fuck your self by trusting any women who act nice to you specialy thaies
-@hishamalzabin02

Having a house in a Thai persons name can be dangerous. A land lease is not the same thing.

@scbrock I'm owning a Thai ltd partner with 49% primary shares and 51% general shares, I'm the sole director and nobody can outvote or do any particular changes even with the 51% shares for Thai citizen.

The company now is able to own property. This way is more save and secure.

My advice to you is this
Do not trust any Thai women with the land lease . remember that any time she can replace you with a thai guy so do not fuck your self by trusting any women who act nice to you specialy thaies
-@hishamalzabin02

She is not my girl friend

Get an Expat lawyer involved - do not do this by yourself.
-@AussieBob99

Can someone recommend an Expat lawyer in Phuket area?

@scbrock I'm owning a Thai ltd partner with 49% primary shares and 51% general shares, I'm the sole director and nobody can outvote or do any particular changes even with the 51% shares for Thai citizen.
The company now is able to own property. This way is more save and secure.
-@Patrick Markus

I assume an expat property lawyer be familiar with the process?

Maybe I am over thinking this. Maybe it isn't as complicated. But I still have limited

understanding of the process. This is from Google

The incorporation of a Private Limited Company requires the following:

1. At least 3 natural persons as promoters (initial shareholders). Three shareholders are required at all times throughout company operation. ---- there needs to be 3 employees one of which is myself

2. Head office located in Thailand along with copy of House registration (Tabien Ban) number and Letter of Consent obtained from the land lord. ---- I guess this is proof of the land and to show the willingness of the current owner to sell it to my company

3. Minimum registered capitalization of 2 million THB for foreign businesses operating non-restricted and 3 million THB for restricted businesses under the Foreign Business Act. Thai-owned companies, not subject to such requirements (but will need to meet financial requirements to support a work permit for an expat). ---- is this to do with the price of my house/land purchase?

4. A memorandum of association to be filed with the application. ---- a company charter I need to create

5. A statutory meeting has to have been convened. ---- ok some kind of formal meeting

6. Letter of Certification from the bank to certify the adequacy of funds in the Thai shareholder's personal bank account where Thai shareholders will be amongst foreign shareholders. ---- so bank accounts need to be made to show I am paying the shareholders?

7. All shareholders/initial promoters and directors will be required to sign part of the application documents in Thailand. ---- so the shareholders must sign on

Does anyone know if this is current info? Any help is greatly appreciated

I would run fast away from this deal.

I do not like leasehold/usufruct. You can get a 1 or 2 BR condo but make sure it is freehold/fee simple. The Chanote will be in your name not with a friend and you can not be kicked out from the property for as long as you live.   You'll be the one who can kick out your GF  .  Just kiddin. 

I would run fast away from this deal.
I do not like leasehold/usufruct. You can get a 1 or 2 BR condo but make sure it is freehold/fee simple. The Chanote will be in your name not with a friend and you can not be kicked out from the property for as long as you live.  You'll be the one who can kick out your GF . Just kiddin.
-@Bigrad Wolf

Are you saying that Freehold is another option to own land?

I currently own a condo well leasehold anyway

I would run fast away from this deal.
I do not like leasehold/usufruct. You can get a 1 or 2 BR condo but make sure it is freehold/fee simple. The Chanote will be in your name not with a friend and you can not be kicked out from the property for as long as you live. You'll be the one who can kick out your GF . Just kiddin.
-@Bigrad Wolf
Are you saying that Freehold is another option to own land?
I currently own a condo well leasehold anyway
-@scbrock

I think what you want to buy isn't what @Bigrad Wolf are talking about. It's like apples and oranges.   Forget about the land, you can't buy it.

@scbrock I I want to make sure it is the HoA/Condo Corporation that actually owns the land.  You as a member of the HoA / Condo Corporation is essentially, though indirectly, a proportionate land owner.  You want FREEHOLD not LEASEHOLD for obvious reasons, like there is no Landlord to deal with that can limit what the HoA/Condo Corporation can do, icrease rental feel for the land, decide not to renew the lease (!).   

I'm talking about a building here with adjoining units -- not a single detached house that we foreigners cannot own the land the house is on. 

@scbrock I I want to make sure it is the HoA/Condo Corporation that actually owns the land. You as a member of the HoA / Condo Corporation is essentially, though indirectly, a proportionate land owner. You want FREEHOLD not LEASEHOLD for obvious reasons, like there is no Landlord to deal with that can limit what the HoA/Condo Corporation can do, icrease rental feel for the land, decide not to renew the lease (!). 
I'm talking about a building here with adjoining units -- not a single detached house that we foreigners cannot own the land the house is on.
-@Bigrad Wolf

It is a single detached house.

My focus now is to learn about creating a Thai company to purchase the land through.

And finding a lawyer

This is from Pulse Real Estate ...

If a property isn't already owned by a Thai company freehold, then you'll need to register a new Thai company. This will cost as little as 45,000 THB (approx. US$ 1300), while annual running costs are roughly 20,000 THB.

I see what you're sayihg... you want to own max 49% of the land via the Thai company rather than just lease it or worse pay for it have the GF name on it 100%. 

I see what you're sayihg... you want to own max 49% of the land via the Thai company rather than just lease it or worse pay for it have the GF name on it 100%.
-@Bigrad Wolf

Yes, that is right. The gf isn't involved in it.

Still looking for an expat lawyer if anyone can recommend one in Phuket.

I googled expat lawyer in Phuket and most of the hits were "English speaking

lawyer". That could simply be a Thai speaking English.

@scbrock You cannot own a house or land, you can own a condo ( free-hold.

You can set up a company with you as MD and the company can own the house, but you have to have Thai shareholders.

Remember what anyone says to you you cannot own land you can own the building on it, which is 99% of cases, is useless to you.

Don't get scammed, best friends can turn into enemies on the turn of a coin ( or a couple of mil baht )

Of course you can own structure 100%. And on top of that, you can own land up to 49% via a company, The 51% will be Thai shareholders. 

It's no different from the condo you were saying. The foreigner owns the condo unit structure 100%. On top of that, the entire foreigners own land up to 49% via the condo company.  The 51% will be Thai homeowner/shareholders.

Of course in leasehold -- be it single house or condo building -- the landlor owns the land.  Foreigner tenant just leases.

But yeah, I don't see why people would need house. House don't have airspace. Condos do.  I may not own landspace 100% but I own airspace 100%.

So, I had a meeting with the seller and the lawyer last night and initially

she had suggested doing a leasehold. After a little research I've found

that having a Thai company to buy the land through is much more

secure. It also seems to have more fees associated with a company

and more complicated to setup.

There is an annual fee of about 25k baht for thru a company and I wish

I could recall the exactly reason but yesterday was a flood of information

and I don't have complete recall. Also, there is an annual report that needs

to be done. An expat at this meeting said it is to show profit for the company.

I still don't have an expat lawyer but a real estate agent that showed my

condo yesterday said he has a Thai that speaks excellent English and gave

me her contact.

At this point everyone is waiting for me to decide do I want to buy it.

They are wanting 600k deposit. One approach could be her lawyer

draws up the paperwork and I find a lawyer to look it over.

Another question I have is for a company to purchase the land thru

I need two Thai shareholders. I really don't know many Thai people

Can the lawyer provide these people.

I appreciate the input this has ben a learning experience to be sure

@scbrock You cannot own a house or land, you can own a condo ( free-hold.
You can set up a company with you as MD and the company can own the house, but you have to have Thai shareholders.
Remember what anyone says to you you cannot own land you can own the building on it, which is 99% of cases, is useless to you.
Don't get scammed, best friends can turn into enemies on the turn of a coin ( or a couple of mil baht )
-@Isaan Property Shop

I understand I can be the director but not initially. It's after a few months that I can become the director.

As far as the share holders being two Thai nationals, can the lawyer provide them. Honestly, I simply don't know

many Thai people to ask to do this.

Not having Thai nationals to trust is a big challenge. You have to invest time to know them that they would not suddenly wisen up and outvote you on decisions (they are 51% majority) and make you pay them to agree each time (AKA silent money). I wish you best of luck if you proceed this route.

Not having Thai nationals to trust is a big challenge. You have to invest time to know them that they would not suddenly wisen up and outvote you on decisions (they are 51% majority) and make you pay them to agree each time (AKA silent money). I wish you best of luck if you proceed this route.
-@Bigrad Wolf

It would seem sensible to have two Thai nationals that don't know each

other or know who the two are to keep them from doing as you say and

outvoting me on decisions.

I can become the company director but only after a period of time it is a

couple of months but not exactly sure the time frame. Once that happens

then I cannot be outvoted.

I have a couple of people in mind to ask but don't even know what to tell

them as far as what the expectations  or duties are.  I need to speak with a

lawyer again to get some clarity.

If you pull it off, don't forget to invite me for a beer in your Kathu mansion. 

If you pull it off, don't forget to invite me for a beer in your Kathu mansion.
-@Bigrad Wolf

As of right it's a bit of a pipe dream seems to be an sharp upward learning

curve of putting this all together. 😊

Meeting with a lawyer today to try to clarify the process of creating a Thai

company. I'm mostly concerned with the fees, annual report and the benefits

and drawbacks from this approach.

Also, how long after the company is created can I become director and not

be vetoed in any decision making.

Something called "due diligence" is done to ensure no leans against the

property or any problems with it. Can a juristic person of the development

do this? Not sure if that is their purpose.

So much to learn

Something called "due diligence" is done to ensure no leans against the
property or any problems with it. Can a juristic person of the development
do this? Not sure if that is their purpose.
So much to learn
-@scbrock

I'm learning myself so take everythin I say with a grain of salt.  I think the Chanote copy will tell you who the current owner The current owner of the land should match the seller, and it should be stamped mortgage-free at the back. 

If the name being shown to you is different owner from the seller, then it is possible the seller is still in process of paying it and the property was bought by a bank via a mortgage, and the bank holds the Chanote with its name on the title.  The bank upon receiving full payment will issue full payment and that person can then go to PLO to re-title the Chanote to the new owner and stamp it as mortgage-free.

The short story is get a copy of the Chanote from seller so you can inspect it with the Lawyer.  My 2 cents.

I'm learning myself so take everything I say with a grain of salt. I think the Chanote copy will tell you who the current owner The current owner of the land should match the seller, and it should be stamped mortgage-free at the back.

If the name being shown to you is different owner from the seller, then it is possible the seller is still in process of paying it and the property was bought by a bank via a mortgage, and the bank holds the Chanote with its name on the title. The bank upon receiving full payment will issue full payment and that person can then go to PLO to re-title the Chanote to the new owner and stamp it as mortgage-free.

The short story is get a copy of the Chanote from seller so you can inspect it with the Lawyer. My 2 cents.
-@Bigrad Wolf

Yes, I'm finding much of what you are saying to be true. I talked to a lawyer today and he

wanted me to get from the owner 1) The house register 2) The title deed 3) Due diligence

if it was done. He said he would charge 10k to do the due dil himself so your tip of looking

at the back of the Chanote to see if it is clear could be a huge savings. I will get the first 2

rounds if this thing takes off 😂

Something new that came up was the lawyer said now they are only requiring two people

or share holders for the company. Including myself. That would simplify things.

The other question is do I need a work permit to own a Thai company. The company is

really only for land purchase. Did you run into this issue?

@scbrock Find an expat lawyer to represent you and my suggestion is to have at least 2 expat lawyers opinions. 

@scbrock Find an expat lawyer to represent you and my suggestion is to have at least 2 expat lawyers opinions.
-@localbard99

Yes I believe you but I haven't been able to find one. I think they are

hiding. There seems to be no shortage of Thai lawyers. I talk to ex pats

for recommendations but they rec Thai lawyers.

I've been watching videos of Integrity Legal Thailand as part of my own research.  Not suggesting you get him/them but just sharing information. 

I've been watching videos of Integrity Legal Thailand as part of my own research. Not suggesting you get him/them but just sharing information.
-@Bigrad Wolf

Thanks I will check it out. The more info the better!

@scbrock

I never would buy this house.

The price is too much, maybe hidden problems, think about the costs for modify the house.

There are many beautiful areas located at sea where you can buy something brand new for at least the same price.

The people you want to do business with, well think again.

You already have your doubts, right??

My advice, Sell your studio and rent something for a while. Meanwhile you have plenty of time looking around for a registrated broker and a house to buy.

Good luck

@scbrock
I never would buy this house.
The price is too much, maybe hidden problems, think about the costs for modify the house.
There are many beautiful areas located at sea where you can buy something brand new for at least the same price.
The people you want to do business with, well think again.
You already have your doubts, right??
My advice, Sell your studio and rent something for a while. Meanwhile you have plenty of time looking around for a registrated broker and a house to buy.
Good luck
-@Inuendo

That's some pretty amazing insight on property you've never seen

before. As for the "beautiful areas located at sea" are these also

properties you have never seen?

And for the "people you want to do business" have you met them?

Thanks for the advice but if I want a soothsayer, clairvoyant or a crystal

ball opinion I know where to look.

another thought ... why live in Phuket one of the most expensive places in Thailand ... just to say ... I live in Saraburi 90 km north of BKK a 1100 sq ft house 2 bed 2 bath in a nice Thai neighborhood in the town with city water and sewage and trash removal 1.2 million baht ... and rent the same row house next door for 4200 baht a month ... no tourists, no huge traffic,  no air pollution ... why live some where expensive ... I have a Robinson's mall to shop at, great inexpensive food locally, and a county hospital as well as a private one and several walk in clinics. just the thought of living any where near a tourist area makes my skin crawl ... married 10 years with my large Thai family right next door 3 m away ... now 3 years a permanent resident ... great place to live but I wouldn't want to live anywhere so expensive ... just my 2 cents on an alternative thought ...

another thought ... why live in Phuket one of the most expensive places in Thailand ... just to say ... I live in Saraburi 90 km north of BKK a 1100 sq ft house 2 bed 2 bath in a nice Thai neighborhood in the town with city water and sewage and trash removal 1.2 million baht ... and rent the same row house next door for 4200 baht a month ... no tourists, no huge traffic, no air pollution ... why live some where expensive ... I have a Robinson's mall to shop at, great inexpensive food locally, and a county hospital as well as a private one and several walk in clinics. just the thought of living any where near a tourist area makes my skin crawl ... married 10 years with my large Thai family right next door 3 m away ... now 3 years a permanent resident ... great place to live but I wouldn't want to live anywhere so expensive ... just my 2 cents on an alternative thought ...
-@LAZARUSDAL

That sounds like a great place for you. Very quiet and inexpensive.

But it's not my lifestyle. I am very active and on Phuket there are 40+

beaches. Some have very sedate water that are good for swimming

and fishing and others have great waves for water sports such as

surfing and body boarding. Some beaches are long and wide that are

good for running.

Phuket is a 20 minute speed boat ride from several islands that are

fun to visit for snorkeling and diving or just to take pictures and relaxing

Have you ever seen a sunset at Karon or Layun Beach? It is

stunning or Promthep Cape.

The property I am looking at is in a quiet neighborhood and has

a nice garden area. For 3.1M is a good price. I have compared to

similar listings. It's a 5 minute ride to Tesco Lotus/Home Pro or 15

minute ride to the nearest beach. In Phuket City I can get a meal

for 30 or 40 Baht

@scbrock well enjoy ... but I am a retired engineer and have no use for beaches ... sand and salt ... not my thing ... warm balmy breezes and great cheap food and , almost no traffic are my thing ..  I have extensive hobbies that keep me plenty busy ... so no need of a party life or being out and mixing ... I actually find most people a drag and drunk bar scenes as not my thing ... so enjoy and good luck with property in Thailand ... mythology wife owns ours and I just the local back for the family ... we have come to an accommodation me being the richest person in the extended family of 65 people ... thailand is the nicest place I have ever lived and I bicycle daily so stay fit and trim and plan to life to be 100 ...

another thought ... why live in Phuket one of the most expensive places in Thailand ... just to say ... I live in Saraburi 90 km north of BKK a 1100 sq ft house 2 bed 2 bath in a nice Thai neighborhood in the town with city water and sewage and trash removal 1.2 million baht ... and rent the same row house next door for 4200 baht a month ... no tourists, no huge traffic, no air pollution ... why live some where expensive ... I have a Robinson's mall to shop at, great inexpensive food locally, and a county hospital as well as a private one and several walk in clinics. just the thought of living any where near a tourist area makes my skin crawl ... married 10 years with my large Thai family right next door 3 m away ... now 3 years a permanent resident ... great place to live but I wouldn't want to live anywhere so expensive ... just my 2 cents on an alternative thought ...
-@LAZARUSDAL
That sounds like a great place for you. Very quiet and inexpensive.

But it's not my lifestyle. I am very active and on Phuket there are 40+
beaches. Some have very sedate water that are good for swimming
and fishing and others have great waves for water sports such as
surfing and body boarding. Some beaches are long and wide that are
good for running.

Phuket is a 20 minute speed boat ride from several islands that are
fun to visit for snorkeling and diving or just to take pictures and relaxing

Have you ever seen a sunset at Karon or Layun Beach? It is
stunning or Promthep Cape.

The property I am looking at is in a quiet neighborhood and has
a nice garden area. For 3.1M is a good price. I have compared to
similar listings. It's a 5 minute ride to Tesco Lotus/Home Pro or 15
minute ride to the nearest beach. In Phuket City I can get a meal
for 30 or 40 Baht
-@scbrock

Phuket is still the most expensive tourist location in Thailand, just because of tourists. Visiting a "hole in the wall" for a 30-40 baht fried rice or a pad thai just shows you're not a big spender.