'secured' or 'collective' leases are void

Post by **BobHelm** » February 28, 2015, 8:05 am

http://www.thephuketnews.com/phuket-cou ... -51183.php

PHUKET: In a shock decision by the Phuket Civil Court, backed by the Region 8 Appellate Court, it has been ruled that the so-called “secured leases” offered by some real estate developers to allow foreigners to secure a cast-iron 90-year lease are not valid.

The case is now to go to the Supreme Court.

Worrying for any foreigner who had sought to 'own' property in this way.
From my understanding, some have in Udon...

Post by **merchant seaman** » February 28, 2015, 8:36 am

Any idea what effect this has on usufructs?

Post by **BobHelm** » February 28, 2015, 8:45 am

Nothing whatsoever I would have though MS.

The issue the court had with these 'secure' leases was that they committed both parties to 90 years at the start of the lease.
The opinion of the court was that the maximum legal time for a lease was 30 years.
It could then be extended for a further 30 years (& presumably for another 30 years after that) at the end of the original lease, but not before.

The real worrying thing is that the courts have also decided that because the 90 years is illegal, even the first 30 year lease is also invalid.
So holders of these 90 year leases are now left holding absolutely nothing at all..
I guess all hope for anyone with this type of lease now lies with hoping the Supreme Court takes a different view..

Post by **glalt** » February 28, 2015, 10:16 pm

The Thai government has never recognized the 30+30+30 lease. It was common knowledge that a maximum 30 year lease legally registered at the land office was the best that you could get. The "lifetime" leases were created by slippery developers to maximize the prices on their projects.

The Thai company ownership scheme is also illegal but will likely not be enforced because the phony companies pay an accountant, a lawyer and pay government taxes. The government is not known to bite the hand that feeds them.

Years ago the Thai government gave land to poor farmers with the stipulation the the land could not be sold and could only be passed on to the immediate family. The people who bought that land illegally were told that if they built a house on the land, ownership would not be a problem. SURPRISE, it is a problem and the government is cracking down on the ownership of this land that was illegally purchased.