Buying in A Thai Company Name

Greetings

I have been offered an attractive condo at a good price in Pattaya. The only downside to the deal is the building has already filled its foreign ownership quota, so I would not be able to transfer title into my own name (Like most of you, I am a farang!). The condo is already set-up under the name of a Thai company - and the current foreign owner is now willing to transfer control of the company to me.

I have never previously bought a Thai property before, so this is all new to me. Nevertheless, I am sure getting involved in such a Thai company comes with certain risks.

Has anyone on this board had experience in buying property using such a procurement vehicle and if so what is the possible downside of getting involved in such a scheme?

If there are claims against the company you will inherit those liabilities. I'd set up another company and transfer the asset, although I imagine there will be transfer taxes payable

I used a UK based Thai student as original main nominee on a land purchase. By skippung the £ thru his UK account to Thailand I had a paper trail showing that the nominee was a genuine investor, not a nominee. Might be worth considering if you know a thai in your home country and have a friendly banker who's hsppy to handle it

It will cost you money to submit annual balance sheet etc for company to keep it legit.

Why not just rent? Invst the cash in a proper country?

Quote:

---

Originally Posted by Lostandfound

It will cost you money to submit annual balance sheet etc for company to keep it legit.

---

As I heard it (FWIW) lots of farangs who go the house ownership route through a Thai company eff it up on this small detail.

To OP, for what its worth, you know from the outset the deal is dodgy. It is not legal to circumvent the condo ownership laws in this way. Pure, plain and simple.

You leave yourself open to being done in by any passing Thai or farang who holds any time of grudge.

Plus, as far as I am aware, you cannot own a Thai company. Has to be majority Thai owned - which means there is another whole layer of deceit on top of it all.

Be careful, very, very careful - and remember that a foreigner in Thailand is more often taken to the cleaners by a another foreigner, as opposed to a Thai.

Quote:

---

Note that a Thai company formed merely as a front for foreign property ownership is illegal and leads to unlawful foreign ownership.

---

Thai Real Estate Laws: Thailand Property law Legal Start

All these schemes have big holes in them, you only need to get nabbed for one mistake and the games up.
If it's a company, then technically you need a work permit to open the door, catch all clause in the lands act.
Any attempt to circumvent the property laws and they can be confiscated without a court order.

Stay legal, stay safe, because you don't know which laws will start getting enforced tomorrow.

Agree entirely with Niddhogg and James why cut corners and risk your asset?

While I often joke with posters here having had the "pleasure' of successfully suing lawyers I do have 7 years experience of the pitfalls.Good luck.

May I also add you don't need legal advise to do the right thing the legal way.

You'll receive bar room lawyer advice from all the folk's who've got away with it, so far....but never the ones who got caught or left their heirs short changed or open to future legal expense or total loss,

Good luck, although in fact being honest is more important than relying on luck here, I found the hard way the more time and effort you put in the more "lucky ' you become

Quote:

---

Originally Posted by jamescollister

All these schemes have big holes in them, you only need to get nabbed for one mistake and the games up.
If it's a company, then technically you need a work permit to open the door, catch all clause in the lands act.
Any attempt to circumvent the property laws and they can be confiscated without a court order.

Stay legal, stay safe, because you don't know which laws will start getting enforced tomorrow.

---

What he said.

Owning any "asset" in Thailand just makes you a bigger target. If you can't pack it in a bag and run to the airport then prepare to leave it behind or lose it one day.

There are millions of condos that you can put in your name.
Why would you risk what you suggest?

With a house/land/ commercial building ok.... But a condo, the one thing that you can actually put in your name?.??

Find another condo - one you can put in your own name.

Quote:

---

Originally Posted by Dapper

There are millions of condos that noone needs or wants and sit you can put in your name.
Why would you risk what you suggest?.

---

Edited for clarity

walk away briskly.

Quote:

---

Originally Posted by mykthemin

walk away briskly.

---

Nope. he should be running away as fast as he can!

Check to see if the farang quota for the building is full. If a slot has opened, have the vendor attempt to convert first into that title. If successful, then transfer should be ok?

Hi Grasshopper. That is a good idea. I will check the farang quota and see whether the transfer is a goer ! Thanks again!

Quote:

---

Originally Posted by james777

Hi Grasshopper. That is a good idea. I will check the farang quota and see whether the transfer is a goer ! Thanks again!

---

That may not be easy, all the nominees would need to sign over all there shares to the vendor.

Sadie the cleaning lady, a nominee, may be hard to find, the other will incur taxes on the sale.

Mr Earl said it, run away, Dapper is right, buy a legal condo and sleep, without worry.

Hi James Yes, that is good advice. Your reference to "Sadie the Cleaning Lady" brings back many fond memories of my time in OZ. Is Johnny Farnham still belting out that ballad ?

On a completely different note, did you spend time in Indonesia and write a couple of rivetting books about that archipelago ?

Quote:

---

Originally Posted by jamescollister

Quote:

---

Originally Posted by james777

Hi Grasshopper. That is a good idea. I will check the farang quota and see whether the transfer is a goer ! Thanks again!

---

That may not be easy, all the nominees would need to sign over all there shares to the vendor.

Sadie the cleaning lady, a nominee, may be hard to find, the other will incur taxes on the sale.

Mr Earl said it, run away, Dapper is right, buy a legal condo and sleep, without worry.

---

Quote:

---

Originally Posted by james777

Hi James Yes, that is good advice. Your reference to "Sadie the Cleaning Lady" brings back many fond memories of my time in OZ. Is Johnny Farnham still belting out that ballad ?

On a completely different note, did you spend time in Indonesia and write a couple of rivetting books about that archipelago ?

---

No idea about Johnny Farnham's present status, last time I heard, he was whispering Jack.

Never been to Indo.