Aside from these natural attractions, the strong blend of Chinese and Portuguese influences has resulted in a style of architecture that is uniquely Phuket which delight visitors from both near and far.

Phuket Real Estate

In addition to its whimsical charm and natural offerings, Phuket also has world class facilities and amenities.  This highly urbanized town has its own international airport, five-star hotels, business and shopping centers, international schools and excellent health facilities.  Tourism is Phuket’s main industry and in recent years, it has also become the retirement destination choice for many American and Europeans.  With the influx of westerners into the area, foreign ownership of real estate in Phuket has likewise increased.

In Phuket, as with the rest of Thailand, foreign ownership of real estate is limited to condominiums and structures built on Thai-owned land.  However, there are several methods by which they can still acquire real property and the most common among these is through the establishment of a Thai limited company.

A foreign investor can set-up a Thai limited company with Thai partners as majority shareholders.  Such companies require a minimum of 7 different shareholders but just one director who can be a foreigner.  In order to be eligible for Phuket real estate corporate ownership, 51% of the shares must belong to Thais and only up to 49% to foreigners.

As Thai law does not specify that one share must equal one vote, Thai limited companies issue classified shares.  There are A-Shares or “ordinary shares” which entitle holders to one vote, and B-Shares which require holders to have multiple shares to get one vote.  A foreigner then subscribes to all the A-shares becoming a minority share holder but with voting rights empowering him to gain control of the company which is what he needs to be able to acquire real estate in the name of the company.

Phuket real estate corporate ownership may be facilitated with the help of a legal professional who can assist a foreign client from the setting-up of a Thai limited corporation and the performance of due diligence on a property to the subsequent closing of the real estate transaction.

Siam Legal International is a reputable law firm that offers excellent legal assistance to foreigners interested in Phuket real estate corporate ownership.  Our local and foreign lawyers specialize in providing our clients with valuable real estate advice as well as full assistance in all areas of their property transactions.

Visit our office today!

This island province has in fact become the most popular destination in Southeast Asia not only for tourists but for expats as well who want to enjoy life on a beautiful tropical island.

Phuket Condominium

What makes Phuket attractive to foreigners is that it also has all the facilities and amenities they are used to back home.  Phuket has its own international airport, world-class health facilities, international schools, excellent roads, superb marinas, and numerous real estate development projects. Many foreigners now own a piece of Thailand by purchasing Phuket condominiums.  Thailand laws do not permit foreigners to own land however, they are allowed to build and own structures on leased land. Understandably, this kind of set-up is not too attractive to many foreigners.

With the implementation of The Condominium Act of B.E. 2522 (1979) foreigners are now able to gain freehold ownership of Thai real estate.

This law allows foreigners to own up to 49% in terms of area of a condominium project. The condominium title gives them exclusive ownership of the property for an indefinite period in contrast to a leasehold which only grants them the right to occupy property for fixed term.

The act grants condominium ownership to both foreign individuals and corporations. This privilege is given to those who are permitted residency in Thailand based on the Immigration Act and the Investment Promotion Act.  In addition, foreign nationals who simply want to invest in a Thai condominium may do so as well.  Corporations that bring foreign money into Thailand, those which are registered with the Thai government, and those promoted by the Thai Board of Investment are also allowed to purchase condominiums in Thailand.

The Thai government has made the process easier by putting in place a system by which foreigners can remit money from abroad specifically for condominium payments.  Only remittances in foreign currencies are accepted and once received, it is then converted into Thai Baht by a local Thai bank.

A foreign buyer has two options when making his condominium payments; one is by  transferring money into the account of the buyer at a local Thai bank then executing a domestic transfer to the developer; the other is by sending the money directly to the developer’s account.

The Department of Lands in Thailand requires proof which shows that the money from overseas has been sent; otherwise it will not allow the transfer of ownership to be registered.

A Phuket condominium has become a very popular investment option for foreigners not only because of Thai statutes that have streamlined the payment process, but more importantly because of their high value for money.

If you are foreigner interested in purchasing a condominium in Phuket or in any other location in Thailand, it is best to seek the advice of a reliable and competent lawyer.

Siam Legal International is a highly reputable law firm which specializes in providing legal services to expatriates in Thailand.  Our real estate lawyers will make sure that you are protected from questionable deals and unscrupulous sellers.  They will also give you advice on the kind of Phuket condominium investment that is best for you.  With our local and foreign attorneys, you can make sure that your real property transaction is in good hands.

Why not talk to one of our lawyers today?

The boom in Thailand real estate owes much to the natural tranquil beauty of Phuket’s beaches and the availability of world-class facilities and amenities in the island which together draws thousands of people, many eventually purchasing or leasing property in the area.  With the strong buying power of western currencies, buying Phuket real estate can certainly be a very attractive investment option for many farangs.

Despite the fact that Phuket real estate in general may be described as a good investment, it is still very important that due diligence for Phuket real estate be performed before an investor decides to finalize any transaction.

What is “due diligence”?  In the buying and selling of real estate, this is a thorough, systematic and complete process of investigating a property to

Due Diligence in Phuket

check its potential and security.  It involves validating facts and digging up all the information possible about the piece of real estate that one is considering and wanting to buy. Due diligence for Phuket real estate begins by conducting a background check on the title of the property and on the seller.

This also mean doing an ocular inspection of the property in order for the buyer to see first-hand the condition of the place so he can evaluate its value and better decide whether it is worth putting his money into or not.  Some of the things that need to be considered are whether the property would require additional expenses for repairs; how the neighboring structures or establishments would affect the buyer’s intended purpose for the property; accessibility and others.

All the information gained from the exercise of due diligence for Phuket real estate can be used as a negotiating tool by the buyer.  It can help him secure a fairer price or receive concessions from the seller.  More importantly, due diligence will protect the prospective buyer from entering into a real estate transaction that can lead him into serious financial loss and legal problems.

Foreigners contemplating on purchasing real estate in Phuket should never enter into any transaction without the help of a competent and reliable lawyer.  Siam Legal International has a team of attorneys who can be counted on for your various legal needs including due diligence on the Phuket real estate you wish to invest in.  They will not only make sure that you are protected but that you get a fair deal in your real property transaction.

Consult us today!

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Perhaps the best part of the deal is that they can have a kind of lifestyle they would not be able to afford back home because of the strong buying power of western currencies coupled with the low cost of living in Thailand.

Buying Phuket Real Estate

Phuket, an island province in the south of Thailand, is a major tourist destination.  Its main town bears the same name as the island itself.  It is home to a large expatriate community made up mostly of retirees.  Many new hotels, apartments and houses have been constructed along the beaches on Phuket’s western coast all catering to tourists who come by the thousands.  At the same time, the availability of many new real estate development projects has drawn both local and foreign retirees to the area.  Real property in the area has value for money which many foreigners are quick to recognize thus many of them are now buying Phuket real estate.

Its long stretches of tranquil beaches and big city facilities and amenities are a perfect combination of the best of what nature and modernization has to offer.  Phuket also has an International Airport with direct flights to major cities of the world, international schools, and shopping and business establishments that cater to a wide range of tastes and interests.  In addition, there are world-class medical care facilities and many different income-generating opportunities.  Aside from the numerous new residential developments, there are marina and golf projects underway on both sides of the island and these have attracted many foreign investors.  With the strong pound sterling and euro, buying Phuket real estate has become the most ideal way to for foreigners in Thailand to invest their money.

Purchasing property is a big step.  Buying Phuket real estate can be the best investment you can made provided you go about it the right way.  It is important to seek the counsel of a competent and reliable lawyer who can keep you from making a bad investment and provide you will all the legal assistance you need in your real estate transaction.

Siam Legal International is a full service law firm that provides a wide range of property transaction services for expatriates in Thailand and these include: due diligence on the seller and title; drafting, review and interpretation of sale purchase and lease contracts; and registration of land purchase and leases.

Our Phuket lawyers specialize in facilitating real estate transactions for expatriate clients.  Other services they offer include visa application assistance, marriage registration, divorce, setting up a business and the other typical legal concerns of foreigners in Phuket.

Give us a call today!

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A discussion of these agreements can be viewed below.

The triple-net lease is a covenant wherein the lessee is responsible for all the expenses incurred in utilizing the property. Mostly of these expenses are taxes, insurances and maintenance fees.

Lease Agreements in Phuket

In the meantime, the double-net lease means that the lessee covers all the expenses except for those that have something to do with the maintenance. The latter is addressed by the lessor. When the lessee pays all the expenses that have something to do with ownership like repairs, maintenance, taxes and insurances, this refers to a net lease or closed-end lease.

Lastly, gross lease is net lease’s opposite. Here, the lessor is accountable for all the ownership expenses.

Benefits of Thailand leasehold

Practicality – Practicality is a major benefit of leasing property in Thailand. Under this set-up, the obligations of marinating the land are equally divided between the lessee and the lessor. The former is somehow treated as a co-owner, but without shouldering all the responsibilities such as those of actual property ownership in the country.

Long term - Compared to mere tenancy and as mentioned, leases are for long-term use. This therefore reduces the stress and strain of going through reviewing renewal agreements.

Flexible – Lessees have the option to renew their contracts. They can afford to this since their attachment to the property is not that strong. They can look for another property to rent in the event where their former residence no longer serves their interests.

Summary

Evidently, a lease is yet another method for foreigners to take full control of a property in Thailand. But then again, one should not forget that a lease is still an agreement—a contract that has to be carefully reviewed and examined by legal experts.

It is focused on uncovering the hidden truths that are otherwise ignored or taken for granted. It is all about performing an investigation. Due diligence is very common in business mergers and acquisitions. Likewise, it also applies to obtaining properties.

Types of due diligence

There are several types of due diligence that can be utilized before investing in Thailand properties. Generally, these are the legal, financial and physical. To make it more comprehensive, it would be best to include the environmental aspect.

Due Diligence Types

Legal due diligence in Thailand reviews all the legal papers, contracts and agreements that may affect the whole transaction. It will also examines whether the conditions set are favorable to both parties. Evidently, this is performed by lawyers. Some may even utilize the services of escrow companies.

On the other hand, financial due diligence is concerned on the property’s financial status or performance. It evaluates the resources’ financial capabilities via looking at its income and expense records. In addition, financial due diligence investigates the land’s tax returns as well as rent rolls, if previously rented by tenants. In short, financial due diligence measures the property’s marketability.

Meanwhile, physical due diligence involves the actual property inspection. It involves the surveying of the whole area. Targeted properties are inspected for any electrical failures, interior problems and even pest infestation.

Lastly, environmental due diligence focuses on knowing the potential environmental problems present in the property. Here the possibilities of toxic contamination are readily investigated.

Conclusion

Due diligence in Thailand properties guarantees a good deal for all buyers and investors. It enables interested parties to formulate contingency plans and concrete risk assessments.

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