PROPERTY LAW THAILAND
Buyer’s Interest and right in the Villas:
The buyer will acquire 1/1 ownership over the Premises of the Villas. Their interest will be registered at the Land Office and will therefore constitute a secure and legally recognised right over the Premises. Under current Thai law, the owners will have a „yellow book” from their Villa as a foreign owner.
In case of Thai private or legal person they would have a „blue book”. This is accomplished with a protected ownership structure over the permises.
Shares in the Thai Registered land owning Company:
In addition to a registered ownership, the Developer will provide shares int he Thai land owning company. This Company will acquire Shares in the company that holds the project land, and the building. Consequently the Thai Company will hold equity and voting rights through these shares. Each purchaser in 4 Elements properties will acquire an equaly number of shares in this ompany and will therefore acquire indirect equity in the Lessor company.
Note that a Thai company must have more Thai shareholders than foreign shareholders. In the context of a villa development, there may be several foreign buyers. If each buyer were to acquire shares directly in the Thai Lessor company, that company would be required to source a greater number of Thai shareholders than there were foreigners, e.g. for 7 foreign buyers there would need to be 8 Thai shareholders. Given the law against using Thai “nominee” shareholders, it is difficult to source this number of Thai investors in any particular project.