Phuket houses listing for sale -  by local agent license number 12/0343 Phuket Thailand
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Patong, Kathu
Chalong
Naiharn, Rawai
Phuket Town
Kamala, Cherngtalay
Panwa, Ao Makham
Naiyang, Mai Khao
Kata Beach
Karon Beach
Paklok, Ao Por
Other area


Phuket properties are among the most sought after in Thailand, for the properties in Phuket offer the added advantages of peace, paradise and a standard of living unavailable in other parts of the country. I addition, any investment in properties in Phuket will eventually repay itself with handsome profits. There are many different types of properties in Phuket, from freehold to rentals. You do not have to be a millionaire to purchase Phuket properties that offer international standards, fantastic facilities, and stunning views, as prices for Phuket properties still manage to fall well below their equivalents in Europe, Australia and the US.

FAQ

Can Foreigners own property in Phuket? 
Foreigners can own property in Phuket, but there are some major limitations. Foreigners are allowed to own a condominium unit in a fully registered complex. They are also allowed to own a building. This is good news. The only caveat is that they cannot own the land on which the structures sit. That's right; foreigners are not allowed to own land in Thailand. However, it is possible for a foreign individual to own land through a Thai limited company, or to lease the property up to 90 years. Each method has it’s pro’s and con’s. Forming a limited Liability company is very popular, and usually only takes about four or five weeks to put together with the help of a good lawyer and accountant. This method must use Thai nominees and the purchaser’s interests are protected through a nominee agreement and pre-signed bought/sold certificates of the shares held in the nominee's names. The advantage of this route is that the purchaser can achieve complete ownership of the land. The major disadvantage is that the company requires on-going attention. An example would be that the purchaser has to appoint someone or a company to maintain the registered address and agreements, to submit twice yearly audited returns, and to file monthly taxes. Many firms will provide this service for a monthly fee. Land leasing is the other very common method to owning land in Phuket. Individual lease periods, under Thai law, cannot exceed 30 years. It is possible to extend this time period by adding two more 30-year lease periods for a total of 90 years. These leases usually include a provision that the buyer can convert the lease to full ownership when the law is changed to allow foreign ownership. The drawback to this method is that the purchaser does not have outright ownership. The bonus of this method is that there is no on-going paperwork, which would not be the case with a limited liability company. An exception to the methods laid out above came in 1999 in the form of the Amendment Land Code Act. It roughly states that if a foreigner wishes to acquire land in Thailand, they must bring foreign currency in an amount no less than 40 million Baht (1 Million Dollars U.S.) and obtain permission from the Minister of the Interior. If you can meet these requirements, you may be granted permission to own land in an area not exceeding one rai, ( 2.5 rais = 1 acre) and it must be used for residential purposes as well.

How are Limited Liability Companies Formed?
A. Seven shareholders are required to form a limited liability company within Thailand. Companies with over one million Baht are the most frequently formed, however, there is no official minimum capital requirement. Twenty five percent of the registered capital, at a minimum, must be paid up front. The company can also not hold treasury shares in itself or accept shares in pledge. Other characteristics, which a company must have, are that Thai nationals must make up a majority of the shareholders. An example of this would be that if a company had say 7 shareholders, and one million Baht in registered capital, at least 4 of the shareholders would have to be Thai, and they would have to hold more than five hundred thousand Baht of the total capital. Registering a company usually requires a three-step process, and typically takes between two to three months to complete. The steps are to register the company name, the company's Memorandum of Association, and then finally to register the company itself.Registering the company name usually involves providing a list of at least three to four names, and if they are English in nature, they must end with "Co., Ltd." Or "Corp., Ltd.". There will be a search by the Commercial Registrar's Office to confirm that the name is not the same, or deceptively similar to any name already in use. The Memorandum of Association must be registered within thirty days after the approval of the company's name, or the name will be lost.The registration of the Memorandum of Association requires the location of the head office, the company objectives, shareholder’s liability, registered capital, and promoters. The location does not need to be specific at this point, just having the name of a province or district will do. The company objectives are broadly published in the Commercial Registrar's Office. The registered capital must include the number and par value for shares. The names, addresses and occupations of seven promoters must be included. Each promoter must purchase at least one share of the company at the time of the company's inception. The application for Memorandum of Association usually takes one to two working days. After the approval process, the company must wait a minimum of eight days before the registration of the company.Company Registration requires a few steps. The first is to pay a minimum of 25% of the company's capital. This usually becomes an issue at the time of the first audit made on the company. The remaining steps entail including information.Information to include is the head office address, a letter from the landlord granting permission to lease, the company seal, by laws of the company, and the directors, or authorized directors. Other information needed is the auditor to be used, the fiscal year to be used, and the pre-formation costs or contracts dealing with how the company intends to reimburse it's promoters for expenses incurred before the registration.

What regulatory board governs foreign investment?
The Board of Investment (BOI) is the primary bureaucratic body regulating foreign investment in Thailand. Most ventures will not however be tackled by just a visit to just the BOI. There are many bureaucratic bodies eager to tangle you in red tape. For the most part, foreigners in Thailand have the same legal rights as Thai citizens. The only differences are the rights to working, or investing in the country. If your corporation is an alien as defined by the Alien Business Law, restrictions can be placed on your business. The Alien Business Law is the most important statute for foreign investors in Thailand. It basically sets the definition of who is an alien, or foreigner. An alien is a natural person or a juristic person (corporation) without Thai nationality. If your business will be beneficial to the economy, you will usually have permission granted to carry on with your venture. The BOI maintains and continually upgrades lists of activities it considers to be in the national interest, and offers development incentives to local and foreign private firms in these areas. Projects approved by the BOI can generally secure investment incentives such as favorable land deals, tax breaks on corporate earnings and import tax relief. BOI projects eligible for incentives are industries which.
  • Significantly strengthen Thailand's balance of payments position, especially through exports.
  • Significantly increase employment in Thailand.
  • Locate operations in provinces outside of major cities such as Bangkok.
  • Aid in the development of the country's resources.
  • Replace imported energy supplies, or conserve energy.
  • Considered important and of need to the government.
  • Development, or the establishment of industries which further technological development.
  • Help in the building of the country's infrastructure and utilities.
  • Promote a healthy environment.
How hard is it to work in Phuket?
Generally, it is very hard for a foreigner to find work in Thailand. Most of the work that is found is usually in the hotel industry in areas such as management, finance, or accounting. These positions are usually found from abroad, however. Second to hotels in hiring, are the English schools and International schools. These schools are generally on the lookout for qualified teachers since education and the English language have become so important to the tourism trade. The third group of legally employed foreigners found in Thailand is owners and proprietors of small to medium sized businesses. After finding a company willing to hire a foreigner, a work permit must be acquired before the individual can legally work. The company doing the hiring generally must apply for this, and it is a long and grueling process, fit with more than it's share of red tape. The company must be registered with at least 3,000,000 Baht in capital, or show that the work cannot be done by a Thai worker. Applications sent in are judged on an individual basis, but generally are judged to the degree to which the above hold true.

What type of documents does one need to live in Phuket?
Any foreigner wishing to reside in Phuket needs a visa. There are four types of visas currently. They are: Resident, Non-immigrant, Tourist, and Transit. Transit visas are of no use to the purchase of property, so they will not be discussed. Resident Visas are hard to obtain because they are so rarely issued. These visas are issued based on a quota system, which is very selective. Some of the qualifications listed are that you must be fluent in speaking and writing Thai, have an above par financial status, and have influential references.Non-Immigrant Visas are usually issued abroad in the foreigner's country. They generally are valid for 90 days, starting upon the first day of arrival. This visa can usually be extended to up to one year at a time. The three ways to obtain and renew a Non Immigrant Visa are:
  1. By becoming employed and getting a work permit in Thailand.
  2. Having a Thai family.
  3. Providing proof of adequate financial means capable of supporting you during your stay.
Tourist Visas are also issued by embassies abroad. These vary from country to country, but generally are between 60 and 90 days. Multiple visas may be applied for at one time, and you may use these visas consecutively. Many of the foreigners living in Thailand have tourists' visas, and they simply renew them by taking a trip out of the country every time they expire.

What guarantees does one  have as an investor?
To safeguard business investments in Thailand, made by foreign currency, the government has set some security guarantees. The government of Thailand will honor these guarantees, as long as the desire for foreign investment exists. Guarantees by the government state that it will not:
  • Grant tax relief to competing imported goods.
  • Allow the establishment of competing businesses in the industry.
  • Impose price controls on the business's products.
  • Nationalize the investment of the business.
  • Withhold permission for exporting.
What are the Costs of Building in Thailand?
The cost advantage of setting up businesses in countries like Thailand can certainly be misleading. Labor costs are generally much cheaper than in some countries, but the costs of materials, electricity and other utilities may be higher. Imported materials and prime beachfront land cost more than some would expect. Proximity to the ocean is probably the biggest factor in the cost of land, and can cost up to fifty times that of land plots in the interior. Building costs and rent may also be rather expensive depending on where you plan to be situated.Even though labor costs may be cheaper, productivity and sometimes skills and attitudes may be lacking. “Mai Pen Rai” is often the attitude of many of the workers, which may translate into not planning, based on the belief that everything will work out fine anyway.Other factors in the costs of building in Thailand have to do with decentralization. Thailand has an active policy of promoting rural developments. The government would like to see investment made away from overcrowded locations such as Bangkok. To further this objective, the government is offering additional financial incentives to encourage investment in rural areas. The choice to consider is whether you would like to be in an established area, which already has good facilities, or take the incentives and build in a new area.There are three methods for determining the division line between rural and non-rural areas. The three methods are as follows:
  • Areas within the country are split into three "zones", which are based on their distance from Bangkok.
  • Based on the government's social goals of segregating domestic and industrial land use, there are likely to be "industrial estates", where new industries are encouraged to locate.
  • An "Export Processing Zone", or "Free Trade Zone" may exist near an industrial estate in which the government may encourage new industries to locate.
Purchasing Condominiums
When purchasing condominiums, there are three acts that have relevancy. The first is the Condominium Act of 1979-No.2. The second is the Condominium Act of 1991, and the third is the Condominium Act of 1999. At this point in time, foreigners can own up to 49% of the total percentage of the condominium units. Until recently, foreigners could only hold up to 40%, so things are getting a little more liberal. As an attempt to sell some of the markets overburdening condominiums, there has been an update to the Condominium act. An exception so that foreigners, or foreign owned companies, can now own 100% of Condominiums. These developments must have development areas under 5 rai. This is supposed to be true through at least April 27, 2004. There are a number of regulations related to foreigners who can own a condominium unit. Basically they boil down to any foreigner who can enter Thailand legally, can buy a condominium.

Factors to look for when purchasing a condominium
When considering what to look for in a condominium, the three universal laws apply in Thailand. This may be true more so than anywhere else-location, location, location. Whether you want to live in, or rent it out, there is a definite correlation between location and the price to be paid. The better the location, the higher the rent is the golden rule. Being close to your work, or your children's school if you have them, should be a big consideration, unless you prefer spending time driving. If you do not have transportation readily available, being far from a main road could be a problem. This would be especially true if you are hidden toward the back of a complex. Taxis, or Tuk Tuk's, are generally found at main intersections. If you have a car, make sure you check out whether or not you have assigned parking. Having to park far down the street can be a big pain when someone has taken your convenient spot out front. Having stores close by should also be figured into your decision. Shopping becomes even more of a pain when the stores are far away, when your ice cream melts on the way home. If you are interested in having a view, make sure that there are no plans others may have to build in your view sight. Visiting the building during several times of the day and week can prevent you finding out too late that you have an unacceptable traffic situation on your hands. Make sure you open electrical and pipe shafts to see their condition, such as whether they were sealed off between floors to prevent fire rising, in the event of an accident. Check for signs of any leakage around windows, doors or ceilings. Make sure that your building is not in a flood plane. Water marks on the walls, or sandbags lying around, could be good clues that flooding is possible. Examine whether or not there are any burglary, or fire alarm systems to protect you, along with checking the status of fire escapes and their access. Having a sprinkler system, which is in good working condition, is also a necessity. Checking the mechanical plant room for cleanliness and upkeep would also help in determining the level of management involvement. Management involvement is of utmost importance. Find out who manages the complex, whether it's an individual or company, to see if they are reputable would be recommended.

First Steps After Deciding a Condominium Purchase
As with the purchase of anything, great care should be placed on being informed and aware of what and with whom you are buying from. Today, in Thailand's property market, it is, unfortunately, safer to buy once the project is finished. Buying on the "plans" of some developers is sometimes risky business. There have been several cases in the past few years, where consumers have paid deposits only to find the developer has stopped working on the project temporarily, or all together. Since there are no legal assurances for escrow accounts in this country, the buyer is very much at the mercy of the developer. There is really nothing one can do to recover their deposit other than taking civil action, or taking it to the consumer protection board. Buying in a well maintained, completed building or resale unit seems to be the best advice in most cases.

Further steps that might minimize risk
Other steps which might minimize risk to the purchaser of land or condominiums, would be to ask to see both the front and back of the title deed. Make sure you have a faithful translator to translate the deed. It should have the shape and orientation of the land, along with any borders it might have with public property. Examples would be roads, or possibly bodies of waters. There should also not be any endorsements or liens, unless you have been made aware of them.It might be a good idea to actually measure the land yourself with a tape and compass to make sure you have the right deed for the land you are looking at.Easements are also necessary to consider when you are dealing with a project still under construction. Make sure that there is a registered easement for vehicle and utility connections. Apparently, some consumers have been promised an easement during the purchasing process, and later, found that the seller reneged on their promise leaving them no access to the property.Look out for clauses stating that the sales price can be adjusted "pro-rata" according to the final titled area. This could be a clue that something might be wrong. There have, apparently, been cases in which a seller has deliberately understated the area of a property.

Documents needed when purchasing a condominium
In order to buy a condominium in Thailand, you need a passport and a document called a Thor Tor 3. The Thor Tor 3 document is proof that you have brought foreign currency into Thailand for use in the purchasing of property.The documentation is very extensive, and even more so if the purchase is in the name of a company.

Steps to insure the smooth transfer of ownership
The first step toward a smooth transfer of ownership is to do some due diligence work. A reputable lawyer or real estate agent can do this for you. For the most part, the description of the property has to match the description on the title deed representing it. The property's boundaries have to match especially, so as to insure there are no disputes. The seller has to be confirmed as the owner of the property and there should be no encumbrances registered against the property. This could prevent the transfer of ownership, or obtaining an unencumbered registered lease.When all the above have been confirmed, it is time to cover the contract. There are many different contract formats out there, and it would be wise to have an experienced lawyer look over things to make sure that none of the details are overlooked.When purchasing a completed property from a private seller, the standard approach would be to draw up a purchase option contract, or reservation. This contract holds you and the seller to the sale of the property with a given schedule and price. This is a contract that binds you and the vendor to the sale of the house at a specific price in accordance to a specific schedule. The contract will usually set up penalties in case of default on the part of either party.A ten-percent deposit is usually required to secure a property. Closing payments will usually be expected within thirty to sixty days. Longer closing terms are sometimes used but usually a greater deposit is usually involved. Deposits are usually not refundable, unless there is a default on the part of the seller.Usually there is a corresponding and equal commitment from the seller, where he will commit to a refund of your deposit and a penalty payment in case of default on his part. Deposits in escrow accounts are still rare in Thailand, but it is becoming an increasingly recognized way of moving along. Escrow accounts generally trade greater security for the buyer's deposit versus a weakened claim for damages in the event of default on the part of the seller.Along with the price, payment and closing schedules, it's imperative that the contract includes clauses to cover who will pay for all the other fees. Legal fees, transfer fees and taxes are examples. There is often a business tax and always an income tax assessment made at the point of sale. The sale will also have to be declared. This is usually at, or close to, the government minimum assessed value.It would be wise to sit down with the seller or someone who knows how to do the calculation of these various fees and taxes, and agree upon a formula for sharing the expenses. It would be great to have this worked out before you arrive at the Land Office. There seems to be no rule set in stone concerning this. It can range from the buyer or seller pays everything, to a split between the two parties.

Purchasing Land
The laws concerning the purchase of land in Thailand are quite rigid. Basically, Thai law does not allow a foreigner to own land in Thailand. On the individual level, even Thai nationals who marry foreigners are not allowed to own land in Thailand, unless the foreign spouse signs a document which declares that the property is separate, and that he or she has no interest in the property in any way. Land laws are not just aimed at the individual. Both partnerships and companies fall under this land prohibition, if foreigners control too large a share. The Alien Business Law, which regulates the investment of land by foreigners, states that "land trading" is considered a Schedule one activity, and is prohibited to foreigners. A foreign controlled company is defined under Section 87 of Thai land law, and states that any Thai registered companies or partnerships with more than 49% of the companies total capital, or more than half the shareholders being non Thai, are considered foreign. To emphasize this point even more, it is even difficult for a company with a 51% Thai/ 49% foreign ownership to purchase land. Having an even higher percentage of the ownership being Thai is usually necessary to acquire land in Thailand. There are some slight exceptions to the above, and the first falls into the hands of the Board of Investment.Under Section 27 of the Investment Promotion Act, the Board of Investment may allow foreign owned companies the permission to own land if the land is used for the purpose of conducting a "promoted activity". This usually involves some manufacturing activity. The lands use must be limited to the promoted activity, and the size of the land must be reviewed as well to insure that it fits within the said purpose. If the business is later dissolved for some reason, the land in use must be sold within one year of the termination.The second exception in which foreigners may acquire land is to lease. At this point in time, Thai law allows a maximum term of 30 years for a lease on land. It is usually possible to extend this to 90 years by renewing the lease for 3 consecutive terms. At the ending of each term, both the seller ad buyers must register the renewal with the Land Department and pay government fees, and other expenses, such as stamp duty. With this second option, one can effectively "own" the land they are on for the entirety of their lives, so it has become a popular choice.

Land Measurements
In Thailand there are a number of unique land measurements in use:
  • 1 Rai = 4 Ngarn or 1,600 sq. meters
  • 1 Ngarn = 100 Wah or 400 sq.meters
  • 1 Wah = 4 Sq.meters
  • 1 Hectare = 6.25 Rai
  • 1 Acre = 2.5 Rai
Land Titles and Deeds
A Land Title Deed is a legal certificate of land ownership. Whoever has their name shown on the deed has the legal right to the land. This certificate can be used as evidence when dealing with governmental bodies. Global positioning satellites are used to set the boundaries of the land, which is the most accurate method to date. The possessor may do any legal acts immediately. Land partition of more than 9 plots must be carried out according to Section 286 of the Land Allotment Law.  Concerning documents and deeds, it is important to understand that in most cases, all land in Thailand is not titled, or even surveyed accurately. This is especially true in the hilly, forested, rural areas of the country and much of the land bordering the coast. Exacting titles cannot be completed without complete surveys of the land, and unlike many of the world's countries, surveys of national land are still not complete. Staking claims was possible up until a couple of decades ago. One could simply register the claim and develop the land in some way such as farming. This is no longer possible. The government stopped this and claimed that all the remaining hills and forested lands were considered National Parks, and controlled by the Forestry Department. Encroachments on these lands, and disputes over ownership have occurred since these lands have not been surveyed in any detail. To define once and for all the boundaries of the disputed lands, and prevent further turmoil, a policy of granting land, which has been accurately surveyed, to landless people has been in operation, although many of these disputes have not been resolved.

Sor Kor 1
This is a document stating the possession of land. It certifies the right to a certain land. The basis of this certificate goes back to December 1st of 1954 when the Thai government issued a statement notifying all land proprietors that they should state, in writing, that they had possession of their lands. The Nor. Sor 3, or Nor Sor 3 Gor would be issued after it was proven that the proprietor had used and possessed the land in question legally. According to principle law, Nor. Sor 3 and Nor. Sor. 3 Gor are legal certificates, which provide that the given name shown on the title is a person who has the right to the land stated within. This right is recognized by the law and can be used as evidence in any disputes with individuals, or the government.

Por. Bor. Tor 6
Por. Bor. Tor 6 is a document for the issuance of a tax number. This is for the purpose of paying tax for any benefits made from the land. The ownership of this land has usually not been assessed at this point. In the event that there is no title for the land, then it may be land in a conserved forest, public land or land which existed under Sor Kor 1, Nor. Sor 3, Nor. Sor. 3 Gor or a title deed. Any of these titles must have a Por. Bor. Tor 6 for tax purposes. This is true of any land without a title.The right to land under Por. Bor. Tor 6 cannot be used as evidence in any dispute with government agencies.

Sor. Por. Gor 4-01
Sor Por Gor 401 is an allotment of land from the land reformative committee. This land cannot, under any circumstances be bought or sold. It may only be transferred to heirs of the property This title land for agriculture only.

Nor Sor 3
Nor Sor 3 is an document certifying the use of land issued by the government to the proprietor of land. It is not a possessor's title. In other words, the person holding the Nor Sor 3 has a legal right to possess the land by law. The Nor Sor 3 has no parcel points, so it's rather like a floating map. This can cause problems with verification because of the lack of connection to other land plots.With this type of document, legal acts, of any kind, must be publicized for 30 days or more.

Nor. Sor. 3 Gor
Nor Sor 3 Gor is a legal land title legally set up the same as Nor. Sor. 3. The major difference between the two is that Nor. Sor. 3 Gor has parcel points on the map. These points are placed using an aerial survey to set the points and the land are, making it possible to verify a nearby land area. Nor Sor 3 Gor always uses the same scale of 1 : 5000.Publicizing legal acts are not necessary, and the partitioning of the land into smaller sections is also possible.
 

Phuket houses
Phuket Real Estate Agent Co., Ltd.
Phuket Office : 96/20 Moo1, Chalermprakiat R.9 Rd., T.Kathu, A.Kathu, Phuket 83120 Thailand
Tel. 66 76 304100, 66 76 304063-4 Fax. 66 76 223237 Hot Line 66 81 8912333, 66 84 7069111
Bangkok Office : 20/168 BaanSuanRachada Condo, Rachadapisek 36, Rachadapisek Rd., Jantakasem,
Jatujak, Bangkok 10900 Thailand. Tel. 66 81 8912333, 66 2 9306338 Fax. 66 2 9306339
Website:  http://www.phukethouses.biz
E-mail: surin@phuket.biz