If you cringe at the though of watching over your shoulder
for the long arm of Thailand's Land Department, then getting
long term control of land may be a better approach than "buying".
The most common types of long-term control are leases and
usufructs. The 30-year lease has long been considered the standard.
While some talk on forums have suggested that 60-year leases
have been negotiated and registered at the Land Department,
the absolute legality of the structure has not widely determined.
Many retirement and family homes have been built on leased
land. While 30 years has been the maximum lease period for
foreigners, we now see the prospecting of 60-year leases raising
their enticing heads. Some comments in public forums claim
(paraphrased):
A local real estate operator claims to have
seen this done for individual units as well as larger projects.
" The concept doesn't break any laws.
Basically, it's two separate contracts, each
for 30 years. The second agreement is a free standing contract,
already formally agreed, some deposits and advance rent, so
it has already been consummated. What's different is the term
doesn't begin until a future date. Paying consideration for
goods and / services on agreed terms makes it a binding commitment,
regardless of when it happens."
Is this a risky maneuver? Yes and no. Much depends on the
amount of "up front" money required for the second
30-year term. If it's nominal, so long as the Land Department
registers both leases, it might be worth the risk. After
all, the first 30 years is secure. You just need to know
and accept the level of risk. And get a lawyer. Not all types
of land deeds are eli gable.
Usufruct is a legal concept that dates to Roman times.
Basically, it is an agreement that allows the holder to
enjoy the "fruits" of the land for his/her lifetime.
In this respect, it has an advantage over a 30-year lease.
Again, get a lawyer. Not all types of land deeds are eligible.
An usufruct has other benefits, but these are better explained
in a savable PDF from a recommended law firm ..
Issan
Lawyers
Note:
I am not an attorney and
all that follows is opinion. I strongly urge anyone who is planning
any substantial purchase in Thailand to seek @ competent
legal advice.
