Question on land in wife's name

Post by **migrant** » Thu Jul 09, 2015 7:56 am

I have a client, who is a friend, but not a great friend. He lives in Chiang Mai 8 months and California the rest of the year.

He is buying some land and building a house, no financing involved, he is very well off (I do his taxes).

He doesn't want to go the company route in owning the land so asked if he could put it in my wife's name.

I don't see a downside for us, him, yes, but not us. Anyone see any potential liabilities for my wife and I?

If we do he will owe me a big favor and it's nice to have rich people owe you favors!!

Post by **Nereus** » Thu Jul 09, 2015 8:37 am

From the experince that I had, if your wife draws up a legal lease for him to use the land, then she will be liable for income tax. It may not be a big amount, but the Land Dept. may insist on their own valuation, and hence the tax.

Post by **splitlid** » Thu Jul 09, 2015 8:43 am

utility bill MAY have to be in wife's name if not leased back to the guy, so be aware she may be liable for unpaid bills.She will also have the hassle of sorting it all out.

Post by **kendo** » Thu Jul 09, 2015 8:44 am

Doesn't he trust his wife or girlfriend.

Post by **migrant** » Thu Jul 09, 2015 10:13 am

kendo wrote:Doesn't he trust his wife or girlfriend.

No wife, and at 72 multiple girlfriends!!

Good advice on the tax and utilities. Since I know he has money, and multiple properties here in California, I am sure he will pay, if not, well the wife can sell the land I guess.

But that is what I am asking for so thanks for the ideas!!

Any others?

Post by **BOZ** » Thu Jul 09, 2015 11:42 am

Exactly, zero downside as he is buying the land and house with his money... Your wife gets it in her name... Any issues and she can sell it and make a tidy sum... He has all the exposure here..... Go for it if you like the guy and want to help him out....

Post by **Bristolian** » Thu Jul 09, 2015 12:11 pm

Technically, i'm pretty sure that, it is illegal under Thai property law for a Thai national to act as a nominee on behalf of a foreigner to purchase real estate. As we all know, laws in Thailand are seldom enforced but there is always the remote chance that it could become problematic.

Post by **kendo** » Thu Jul 09, 2015 1:14 pm

migrant wrote:
kendo wrote:Doesn't he trust his wife or girlfriend.
No wife, and at 72 multiple girlfriends!!

Good advice on the tax and utilities. Since I know he has money, and multiple properties here in California, I am sure he will pay, if not, well the wife can sell the land I guess.

But that is what I am asking for so thanks for the ideas!! Any others?

So the old boy has a hareem respect!

Post by **JamesWest** » Thu Jul 09, 2015 1:37 pm

i wonder what the problem is with forming a company to "own" land?

could it be that it is not legal?

zero or little problems for you, but your friend is setting himself up for some real headaches.

Hypothetically speaking, so please don't take this the wrong way, but what is to stop your wife from selling the land two seconds after it is in her name? or bowing to some family presure you know nothing about?

what if your wife dies? then what? or if you die?

Bristolian wrote:Technically, i'm pretty sure that, it is illegal under Thai property law for a Thai national to act as a nominee on behalf of a foreigner to purchase real estate. As we all know, laws in Thailand are seldom enforced but there is always the remote chance that it could become problematic.

i hope he contacts an attorney. he may trust you to control the lease/land, but at 72 he may not be thinking clearly as he should. especially with his rockstar status of having many girlfriends… I am sure they are all acting in his best interest. the constant drumbeat of "you can, easy, no problem. my girlfriend's boyfriend from Norway buy house, land in her name, no problem. easy. condo no good, house better."

he better have a iron clad lease and/or the strength at 72 to be able to fight. If he lives in CM then he knows Thailand is not California where he can pick up a phone and hire a attorney to kick a** on some shady deal. Does he understand if he loses control of the land, he can't access the house he owns? just sort of look at it from the street...

if the money is a "small" amount, like under $50,000 USD, then maybe a older man can afford to lose it all in Thailand or he may have so much money he does not care at all. But between his girlfriends who "love" him and the law that clearly says he can't own land, it does not look good. And does he understand that say $50,000 USD is like two of three million in the eyes of a Thai "girlfriend"? She would be set for life.

maybe he just wants to have fun building a house on the cheap in thailand. sort of a hobby. no doubt the the Thai man who is always around the house is the gardner...

Post by **Nereus** » Thu Jul 09, 2015 3:34 pm

Bristolian wrote:Technically, i'm pretty sure that, it is illegal under Thai property law for a Thai national to act as a nominee on behalf of a foreigner to purchase real estate. As we all know, laws in Thailand are seldom enforced but there is always the remote chance that it could become problematic.

She would not be acting as a nominee. The Thai lady in question is entilted to own the land outright, and lease it out if she so wants. The retiree can legally build and own a "house" or building in his own name. I think that this situation is entirely different to that which applies to a Thai lady married to a Farang.

Post by **Takiap** » Fri Jul 10, 2015 5:28 am

The above reply is 100% correct. Your wife can purchase the land and lease it out legally, and in this case, a 30 year lease should be ample. As someone has pointed out, your wife might have to pay some tax on the lease money but that's about it. If he then builds a house in his name, he would then also be the one responsible for paying utility bills and etc.
Alternatively, the house could also be in your wife's name, and she could sign a usefract agreement giving him the right to live in the house until he dies. Such an agreement would give him some security since your wife would not be able to sell the place while he is alive. Well, she could sell, but the new owners who still have to honor the agreement. I know this for a fact because we checked at the land office about six months ago.

I say, go for it.

Post by **migrant** » Fri Jul 10, 2015 8:35 am

Thanks all! We wouldn't have lease payments unless required, if so he would pay the taxes and we would return the net to him.

That's why this forum is so great!!

Post by **Henry 14th** » Wed Jul 15, 2015 8:36 pm

Slightly off topic, but does anyone know the reporting requirements of transferring money into Thai for the purchase of a property?

I did see it somewhere on here once but my search didn't return with anything.

Thanks.

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Post by **hhfarang** » Wed Jul 15, 2015 8:40 pm

You just need a filled out form from your bank stating that the funds (amount) were transferred in. It's not that you have to do that to buy or build, but that form should be kept in case you ever want to take that amount out of the country again and encounter a problem from the BOT. I don't remember the name or number of the form but the people at the bank should know.

Post by **Henry 14th** » Wed Jul 15, 2015 9:16 pm

Ok great, sounds simple enough.

Cheers.

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