Lease agreements

[Arcadian]

We are having a lease prepared for a new build which will be ready in April,
We have been asked to supply names of our parents, 3 of whom are dead, is this requirement hangover from long ago red tape or is there any relevance to the question?

[Super Joe]

It's standard practice, they always ask us for it.
Mother and father of all the farangs going on the lease, name and last known addresses.
Doesn't matter if they have passed away. Think its to do with parentage!?

Sorry for being nosey but have you had a solicitor put in all the additional clauses that are not covered under basic Thai lease law ?

SJ

[moja]

why are you going for a lease and not a company? I know that is not as easy as it was but really it is the better way of doing things. From experience I can tell you it is a lot more expensive to do it at a later stage.

A company really does lead to more peace of mind.

As SJ says have you got a lawyer looking at everything from your side?

[Guess]

Think its to do with parentage!?

Can I put "Not sure but my mum has a list of all the guys at the party" as the father's name.

[Arcadian]

why are you going for a lease and not a company? I know that is not as easy as it was but really it is the better way of doing things. From experience I can tell you it is a lot more expensive to do it at a later stage.

A company really does lead to more peace of mind.

As SJ says have you got a lawyer looking at everything from your side?

I have read that companies formed for convenience and not actual trading were going to be investigated and dealt by some yet to be determined legislation.
SJ, I am having an inheritance clause which will eventually leave the property to our children, perhaps I should add that we are an English couple, so there will be no complications pertaining to Thai claimants. Is there anything else I should consider putting in the agreement?

[moja]

remember inheritance works both way - the holder of your lease may die and you need to know that their benificaries are going to honour your lease.  The other question, the one that bothered us and one of the main reasons we switched from lease to company is where is the holder of your lease going to be in 30 years time?

Another problem we had was when we wanted to drill a well we technically could not do it without permission as we had no rights over the land - apparently this can be addressed in your lease agreement so you can do what you want with the land.

We too are an english couple

[Super Joe]

SJ, I am having an inheritance clause which will eventually leave the property to our children, perhaps I should add that we are an English couple, so there will be no complications pertaining to Thai claimants. Is there anything else I should consider putting in the agreement?

Here's some that I know of that you should add as they are not covered under Thai lease law, but are legal if added:

1) Your right to buy the land or extend the lease period in line with any future law changes.
2) Your right to sub-lease the lease to a.n.other, ie: sell the house and remaining lease rights.
3) Succession (Inheritance) - The lease rights transfer to your heirs, you got this one covered already.
4) Your right of ownership to any structures on the land, ie: you can own the house as a separate entity to the land, registered in your name at land office.
5) Option to extend the lease for a further 30 year period for as many times as you want

On item 3) you can actually name a successor in the lease so in the event of you both passing your heir is automatically takes over the remaining lease rights without having to come over go the the land office and re-register as an heir. I'm not 100% on the workings of this mind. If it was me and I had several kids I would name say the oldest/most responsible and then let him/her share or whatever with siblings.

SJ

[Super Joe]

remember inheritance works both way - the holder of your lease may die and you need to know that their benificaries are going to honour your lease.  The other question, the one that bothered us and one of the main reasons we switched from lease to company is where is the holder of your lease going to be in 30 years time?

Good points Moja, nothing is guaranteed with lease rights etc, but a solicitor will give you the best protection available.

Another problem we had was when we wanted to drill a well we technically could not do it without permission as we had no rights over the land - apparently this can be addressed in your lease agreement so you can do what you want with the land.

Leases usually have a clause to the effect of: "The Lessees may construct small structures on the Leased Land without obtaining permission from the Lessor. In the case of a large structure, (a second storey, a new building etc), then prior permission must be given by the Lessor"
Open to interpretation, which does a well come under!?!? I wouldn't have thought many lessors would object to an nice expensive improvement to their land, but you never know here. Water stability is fluid (pun intended) when you move it pressure may be great, next year when they build a 30 house project next to you ......

Re: Limited Companies http://www.huahinafterdark.com/forum/li ... t9999.html

SJ

[johnnyk]

Damn! I never knew the postman's name

[margaretcarnes]

Pat?

[heretostay]

A good lawyer in bkk will charge around 4,000 baht to draw up a lease, to set up a company, pay tax each year, land tax, accountants, staff tax, etc Vat, could cost around 40,000 per year!!! and if your company does not trade, you could loose everything.

[Super Joe]

quadruple post sorry

[Super Joe]

sextuplet post sorry

[Super Joe]

to set up a company, pay tax each year, land tax, accountants, staff tax, etc Vat, could cost around 40,000 per year

This does not apply to the shell companies foreigners set up to hold property. No staff, VAT and 20k per year.
If trading you do not neccessarily need to be VAT registered with a trading company, depends on turnover. And you still do not have Thai investors (shareholders). Its not about trading but Thai investors.

and if your company does not trade, you could loose everything.

Maybe one day they will crack down on them!? You will be given a period of time to dispose of th eland, think its 6 months currently under the land code, you can change it over to a lease in 2 hours
One thing is for sure the person who set up a Limited company 30 years ago is having a beer in his garden today, what is his neighbour who leased 30 years ago doing ?

SJ

[caller]

Hey SJ, were your multiple posts affected by a glitch here. I lost the connection for a short while here in the wet and windy UK.

Anyway, But I thought you couldn't set Companies up anymore for house purchases?