A friend who bought a house a few years ago asserts that he has a good guarantee with the note morgage that his companion signed for the money he gave her for purchasing the house. He has also a long term lease.
The mortgage is registered in the land office.
That seems very easy, and really cheaper than setting up a company. But is it reliable ?
Do you know about this ?
Thx,
Alex
Good guarantee ?
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laphanphon
Re: Good guarantee ?
reliable....NO.............and the company thing, unless actually a real working company trying to make a profit, it's illegal. once again, you are putting everything in the control of a local on either decision. what written on paper and the reality of getting a judgement, let alone any thing received from the judgement may take many years and a few baht. all better than nothing, but basically worth about as much as the paper it's written on. also, any lease that is over three years has to be registered at land office. if not done yet, change to a usefrut, or spelled something like that. 2 types, can use, on can use/change/build/alter any thing. to ensure permanent use of land and house, have a rental agreement to a third party, and judge will not cancel a lease or usefut if a third party involved.
the lease can be cancelled one year after the divorce, if married, and if in her family neighborhood, if it hits the fan, it may no longer be safe for him to in the area.
rule of thumb, never lend anyone more money than it takes to have you bumbed off. 50-100,000 is the going rate for a professional job. so what's cheaper and what do you think they would do. repay a million, or invest less than 100 k, if relative or boyfriend, much cheaper or free.
the lease can be cancelled one year after the divorce, if married, and if in her family neighborhood, if it hits the fan, it may no longer be safe for him to in the area.
rule of thumb, never lend anyone more money than it takes to have you bumbed off. 50-100,000 is the going rate for a professional job. so what's cheaper and what do you think they would do. repay a million, or invest less than 100 k, if relative or boyfriend, much cheaper or free.
Re: Good guarantee ?
I have a guarantee no one knows my PIN # on my ATM that my guarantee as for every thing else no problem it does not belong to me it was a gift and gifts are NOT returnable I laugh at those who are worried about the house they bought in there wife or G/F name if that is a concern should have never agreed to buy now all you are is a hostage if you are worried. I look at it this way if my wife dumps me I have more money to spend on my self 
Re: Good guarantee ?
One man, one opinion.
I thank you for reply, but I would like to know people who had note mortage and lease registered in the land office, but who have had problems.
Nothing is sure at 100%.
But I've a 'sleeping" company for several years and no problem at all, and a friend who didn't have any guarantee and who lost 100% of his house.
I thank you for reply, but I would like to know people who had note mortage and lease registered in the land office, but who have had problems.
Nothing is sure at 100%.
But I've a 'sleeping" company for several years and no problem at all, and a friend who didn't have any guarantee and who lost 100% of his house.
Re: Good guarantee ?
As LA has been through the experience of what happens when it all goes wrong and won I would (personally) trust his judgement on this matter 100%.
The "sleeping companies" are illegal under Thai law now & have been for a couple of years. There was some sort of 'grand fathering' permitted but would not put money on you winning in court if it did go wrong for you...
If you search the forums history you will find inexpensive & legal ways of securing your right to remain in a property, however, again, as LA says the law, enforcement of it & the cost of elimination are all relative in Thailand...
The "sleeping companies" are illegal under Thai law now & have been for a couple of years. There was some sort of 'grand fathering' permitted but would not put money on you winning in court if it did go wrong for you...
If you search the forums history you will find inexpensive & legal ways of securing your right to remain in a property, however, again, as LA says the law, enforcement of it & the cost of elimination are all relative in Thailand...
Re: Good guarantee ?
hi i have got a house on a 30 yr lease in my name. should anything go wrong. flatten house and walk away. no ifs and buts.Re: Good guarantee ?
Many things are forbidden, or illegal. It's why so many lawyers are rich, getting money for finding the way to do with that. It's the rule of the business all over the world !
About "sleeping" companies, they are not illegal, and many are still set up. Which goverment would like to kill this profitable business ? But the law is now more constraining, and it makes the fees, the taxes and the "partners" more expensive.
I hear about illegality of sleeping companies for many years, especially since 2006, but I don't know any case where the director has lost his house or his money.
Maybe my question is not clear. I would like to know if anyone, with a mortgage and a long term lease registered, has lost his money in front of a tribunal.
I don't ask for assumption, but a real case, anywhere in Thailand.
Thx.
About "sleeping" companies, they are not illegal, and many are still set up. Which goverment would like to kill this profitable business ? But the law is now more constraining, and it makes the fees, the taxes and the "partners" more expensive.
I hear about illegality of sleeping companies for many years, especially since 2006, but I don't know any case where the director has lost his house or his money.
Maybe my question is not clear. I would like to know if anyone, with a mortgage and a long term lease registered, has lost his money in front of a tribunal.
I don't ask for assumption, but a real case, anywhere in Thailand.
Thx.
Re: Good guarantee ?
Alex, come on man. Just because a law has not every been enforced does not make the activity legal. Look around. Thais are masters at ignoring laws until such time as someone feels like enforcing them.
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laphanphon
Re: Good guarantee ?
well you can take the advice or not, but they did start cracking down in the tourist spots. your money, have fun. 
Re: Good guarantee ?
My thinking is that the gov't doesn't want to kill the ''sleeping companies'' or any other illegal business practices unless it has a negative effect politically!
To much money made by Thais in these practices and they can apply the law against the falang if there is a problem in the future.
Just like most all the laws of the country,they are not there to enforced fairly,but to be applied selectively when they deem necessary!
Falangs should not look for satifaction from the courts!It ,in most cases,will be a waste of a lot of time,aggravation and money to no avail!
To much money made by Thais in these practices and they can apply the law against the falang if there is a problem in the future.
Just like most all the laws of the country,they are not there to enforced fairly,but to be applied selectively when they deem necessary!
Falangs should not look for satifaction from the courts!It ,in most cases,will be a waste of a lot of time,aggravation and money to no avail!
Re: Good guarantee ?
Why argue. The law is that everything is OK and no problem - until there is a problem. TIT 
Re: Good guarantee ?
Falangs should not look for satifaction from the courts!It ,in most cases,will be a waste of a lot of time,aggravation and money to no avail!
Really, Bkkstan ? Do you have the knowledge of cases ? It could be very interesting.
That's difficult to find help from private person, because everybody has convictions, but no one has any experience.
It's human, and I suppose farang, to think the country they like, where they live... is bad ! Very strange.
I remember this particular example that I've read :
"This city is absolutely horrible. There are only bars and prostitutions. It's one of the most dangerous place in the world... The beaches are dirty and polluted..."
And the end of the post is especially funny :
"... I've never been there, and I will never go..." !
I've some doubts about the quality of this testimony ! And you ?
Really, Bkkstan ? Do you have the knowledge of cases ? It could be very interesting.
That's difficult to find help from private person, because everybody has convictions, but no one has any experience.
It's human, and I suppose farang, to think the country they like, where they live... is bad ! Very strange.
I remember this particular example that I've read :
"This city is absolutely horrible. There are only bars and prostitutions. It's one of the most dangerous place in the world... The beaches are dirty and polluted..."
And the end of the post is especially funny :
"... I've never been there, and I will never go..." !
I've some doubts about the quality of this testimony ! And you ?
Re: Good guarantee ?
Back to the original question, when I bought my home in Udon 3 years ago, it sounds like I set up the purchase like your friend. I established a Thai company and setup a mortgage between my wife and myself. Everything was registered at the land office.
It worked just fine with one exception - annual accounting fees and income tax. To do everything by the book, you have to file an annual corporate tax return and pay income tax on the interest earned on the mortgage. In my case, it all added up to nearly 30,000 THB in taxes and fees per year.
After two years, I switched everything over to a Usufruct. According to the attorney, a safe a simple way to own a home in Thailand - and no annual taxes or accounting fees!
It worked just fine with one exception - annual accounting fees and income tax. To do everything by the book, you have to file an annual corporate tax return and pay income tax on the interest earned on the mortgage. In my case, it all added up to nearly 30,000 THB in taxes and fees per year.
After two years, I switched everything over to a Usufruct. According to the attorney, a safe a simple way to own a home in Thailand - and no annual taxes or accounting fees!
Re: Good guarantee ?
That's the only way to go as LA has tried to explain to people for a long time now =D>
Re: Good guarantee ?
Hi Bamak,
No, I didn't say that exactly. I said my friend bought in his gf's name, and has as guarantee for his investment a registered mortgage.
If they separate themselves, they can sell the house and share money as they have accord for doing. His gf cannot sell the house alone, or she has to pay back to him mortgage and interests.
That seems a good and easy solution. He's the only one I know who did so. It's why I asked on the forum if anyone had knowledge of people who got problems with this solution (in case of they fought, of course).
About Co. Ltd, I had one (just sold it), and I have many friends who have in many places in Thailand.
Those are Co Ltd with one director (49%) and 6 share holders. Only the director can do and decide anything about the company.
I paid every year to the lawyer for all documents (general assembly, and accountancy) 12000 baht.
For taxe income of the Co., I've paid, depending of the year, from 650 to 4000 baht.
Taxes were cheap for a big and beautiful house with private swimming pool on the seaside (sold 10MB).
I never had any problem with this Co., either any people I know in the same case.
No, I didn't say that exactly. I said my friend bought in his gf's name, and has as guarantee for his investment a registered mortgage.
If they separate themselves, they can sell the house and share money as they have accord for doing. His gf cannot sell the house alone, or she has to pay back to him mortgage and interests.
That seems a good and easy solution. He's the only one I know who did so. It's why I asked on the forum if anyone had knowledge of people who got problems with this solution (in case of they fought, of course).
About Co. Ltd, I had one (just sold it), and I have many friends who have in many places in Thailand.
Those are Co Ltd with one director (49%) and 6 share holders. Only the director can do and decide anything about the company.
I paid every year to the lawyer for all documents (general assembly, and accountancy) 12000 baht.
For taxe income of the Co., I've paid, depending of the year, from 650 to 4000 baht.
Taxes were cheap for a big and beautiful house with private swimming pool on the seaside (sold 10MB).
I never had any problem with this Co., either any people I know in the same case.
Re: Good guarantee ?
..." !Well since you are a relatively new poster,I will say that I have extensive experience living in Thailand continiously for 12 years,I/2 in Bangkok and half in NK.In that time I have met and talked to many people that who have ''tested'' the court system with all but one,which was a local NK fraudulent stock situation in a local hotel,suffering a nightmare of aggravation,time and waste of money to no avail.The key to the successful case was the lawyer(that no longer practices)and the blatant wortless stock certs issued!Alex wrote:Falangs should not look for satifaction from the courts!It ,in most cases,will be a waste of a lot of time,aggravation and money to no avail!
Really, Bkkstan ? Do you have the knowledge of cases ? It could be very interesting.
That's difficult to find help from private person, because everybody has convictions, but no one has any experience.
It's human, and I suppose farang, to think the country they like, where they live... is bad ! Very strange.
I've some doubts about the quality of this testimony ! And you ?
I personally have not tried or tested the courts here for that very reason and because I now keep myslf void of any possible situations where I would need to test them.Unlike many,I live my life in Thailand void of any business or ''new'' personal relationships with Thais and it works very well for ME!
Unless you have other experiences,I wonder why you challenge the testimony?Being sincere or just contentious?
Re: Good guarantee ?
Since you didn't mention it,we can assume that it was never challenged.Alex wrote:Hi Bamak,
No, I didn't say that exactly. I said my friend bought in his gf's name, and has as guarantee for his investment a registered mortgage.
If they separate themselves, they can sell the house and share money as they have accord for doing. His gf cannot sell the house alone, or she has to pay back to him mortgage and interests.
That seems a good and easy solution. He's the only one I know who did so. It's why I asked on the forum if anyone had knowledge of people who got problems with this solution (in case of they fought, of course).
About Co. Ltd, I had one (just sold it), and I have many friends who have in many places in Thailand.
Those are Co Ltd with one director (49%) and 6 share holders. Only the director can do and decide anything about the company.
I paid every year to the lawyer for all documents (general assembly, and accountancy) 12000 baht.
For taxe income of the Co., I've paid, depending of the year, from 650 to 4000 baht.
Taxes were cheap for a big and beautiful house with private swimming pool on the seaside (sold 10MB).
I never had any problem with this Co., either any people I know in the same case.
My understanding is that if it is challenged and can be proved that the company main purpose was to circumvent the land ownership laws,one could be in serious trouble.If it is a legit land management company where the majority owners(directors) have final say,then no problem!
Usafruct for land usage seems to be an effective legal remedy,as long as the the home is not located in the wifes village,where one might encounter ''local?family'' opposition to legimate claims!
](./images/smilies/eusa_wall.gif "Brick wall"){kind=small}