Tag Archive: bangkok

  1. Buying a House in Thailand – Handover Checklist

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    When the owner of residential property changes, the last step after the visit to the land office and the receipt of the money is crucial: the handover of the keys; after this, the previous owner moves out, and the buyer moves in. At this point, all documents are handed over, a joint tour of the house is made, and meter readings and defects are noted. It makes sense to draw up a protocol for the handover of possession so that the sale of the house does not have any repercussions. We have summarized what you should pay attention to in the house handover protocol.

    Summary of the most important things to remember in a handover:

    As with a condominium, a house is handed over at an agreed time after the purchase contract has been signed, usually only after the money has been received.

    The handover occurs under the agreed conditions, typically in a “bought as seen” condition.

    Before the keys are handed over, the buyer and seller tour the property together.

    Defects are noted in the handover protocol, including the “to do” list, who will take care of these, and by what date.

    It also lists all the previous owner’s documents to be handed over to the new owner.

    The handover protocol may also be referred to as the takeover protocol, as meter readings are recorded, and it is noted which inventory/furniture is being taken over.

    The buyer and seller sign the handover protocol, and witnesses present also sign if necessary.

    The goal of a handover protocol for a house or condominium is a smooth transition without legal disputes. It protects both sides: for example, the buyer can claim unlisted, missing, or required documents from the seller. If defects occur after the handover, which the seller neither concealed nor is responsible for, he does not have to pay for these to be resolved.

    What should be included in a house handover protocol?

    A good handover protocol checklist includes:

    1. Names and contact details of the parties
    2. Time of the inspection
    3. Property data (address, last renovation, service charges paid until)
    4. Meter readings (heating, electricity, water meters)
    5. Furniture/inventory per room
    6. Defects – including the basement, attic, garage, outdoor areas such as the garden, etc. Examples include a crack on a wall, a leaking roof, and faucets not working. A record is taken of who will remove the defects, by when, and at whose expense.
    1. Repairs that have already been ordered or are still being paid for by the previous owner.
    2. The number of keys from the mailbox to the tool shed.
    3. A list of the documents handed over. Of particular importance are:
    • Building description
    • Building plans, floor plans, sketches, and static calculations
    • Building insurance
    • Property tax assessment
    • Craftsmen’s invoices (especially relatively recent, larger ones)
    • Inspection records (especially fireplace inspections by the chimney sweep)
    • Operating manuals for building services/heating etc.
    • In the case of condominiums, the minutes of the last three owners’ meetings and the declaration of division should also be included.
    • Place, date, and signature of all who are present*.
      *Optional: If witnesses accompany you during the handover, name them in the handover protocol and have them sign.

    For more information about our real estate services please visit www.franklegaltax.com/services/real-estate/
    If you have any questions related to property transfers or real estate in Thailand, please contact [email protected]

  2. How To Legally Rent Out A Property in Thailand

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    As part of the steady economic recovery from the COVID-19 crisis, Thailand is gradually attracting tourists back into the country. Due to the increased number of visitors, short-term rentals through platforms such as Airbnb, including daily rentals, are in high demand, encouraging villa and condominium owners to set up short-term rentals by allowing tourists to stay in their properties. However, it is important to understand the legal implications of setting up short-term rentals in Thailand as a host.

    Below, we classify three different property scenarios:

    1. Condominium Units

    In most condominiums, daily rentals are usually prohibited as condominiums are not legally recognized as hotels under the law. As a result, condominium unit owners must check the rules and regulations of that particular condominium and the previous minutes from co-owner meetings before deciding to proceed with short-term rentals through Airbnb, booking.com, Agoda, or similar websites, as there may be certain restrictions.

    2. Landed Property

    Whereas for villas, short-term rentals are much more flexible as, in most cases, there are no rules and regulations applicable as in the case of condominiums. It must be noted that according to Article 1 of the Ministerial Regulation B.E. 2551 (2008), a hotel license is needed for villas or buildings with over four rooms and a capacity for over 20 guests. For most villas, this threshold for a hotel license is usually not met. Furthermore, Section 4 (2) of the Hotel Act B.E. 2547 states that the definition of “hotel” does not include accommodations established for the purpose of monthly rentals. As a result, if the villa qualifies as a hotel in terms of size and capacity, but the property is rented out monthly only, it will not be subject to the Hotel Act, which means that a hotel license or a notification of a non-hotel is not required.

    3. “Non-Hotel” Notification

    If the condominium units or villas qualify as a non-hotel through daily rentals by having less than four rooms and for a capacity of 20 guests or less, a notification must be submitted to the local district office using the following documents:

    • Land title deed/unit title deed
    • House registration book of the villa/condominium unit
    • Villa building permit
    • Villa floor plan
    • Company affidavit and other relevant company documents (if a company is the villa owner)
    • ID card/passport of the owner/authorized director of the company

    It is important to note that the illegal operation of a hotel is subject to a jail sentence for up to one year or a fine of up to THB 20,000 and an additional fine of up to THB 10,000 a day throughout the period of violation, according to Section 59 of the Hotel Act.

    If you have any questions related to property in Thailand, please do not hesitate to contact us at [email protected]

  3. Seminar on BOI promotion with a full house of Bangkok business professionals

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    FRANK Legal & Tax hosted a seminar on BOI Promotion for Tech Startups, attended by a full house of businesspeople working in the tech and digital sectors in Bangkok.

    The event provided an opportunity to explore BOI promotion related to the tech industry in Thailand and gave insights into the various BOI categories that are relevant to IT, software development and tech business.

    The audience asked a number of questions based on their own experiences of planning or trying to pursue BOI promotion in Thailand.

    The event was a success, drawing attention to the importance of the rule of law in doing business in Thailand, and raising awareness of the ways in which business people in Bangkok can take advantage of BOI promotion.

    FRANK Legal & Tax looks forward to continuing events related to important legal issues and we welcome any questions you may have about doing business in Thailand by contacting us at [email protected]

  4. Seminar on BOI Promotion for Tech Startups, Bangkok, 21 August 2019

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    Starting a Business in Thailand is much easier when the Board of Investment (BOI) promotes you. Our next event will provide an opportunity to explore the BOI promotions related to the tech industry in Thailand. Our experienced Lawyers will be starting with a big-picture view of foreign business licensing in Thailand, which will be followed by insights into the various BOI categories that are relevant to IT, software development and tech business. In addition, our Managing Partner, Fabian Doppler will briefly discuss the legal process for start-ups in Thailand.

    Register here

    The admission fee will include:

    • Presentation by our experienced lawyers
    • Possibility to ask questions
    • A fine selection of high-quality finger food
    • Free beverage

    Our Speakers:

    Fabian Doppler – Managing Partner

    Fabian Doppler is a founding partner of FRANK Legal & Tax, Bangkok. He focuses his practice on corporate and commercial law, as well as real estate law, advising clients on a number of regulatory, compliance and transactional matters. He has developed a specialty in providing advice in the areas of corporate legal structuring, licensing and contract negotiations for foreign direct investment in Thailand. He counsels discerning corporate clients at C-level, from the point of planning the market entry and support in the operational phase through to successful resolutions of legal disputes.

    Rangsarit Suwanarat – Specialist Corporate law

    Rangsarit Suwanarat is a Thai attorney with more than four years of litigation experience and more than three years of corporate experience. He has represented individuals and juristic person clients in civil cases and represented a foreign company in a rehabilitation case at Thai Bankruptcy Court. Mr. Suwanarat supports company registrations for Thai and foreign clients, trademark registrations, applies for foreign business licenses, juristic person life insurance, brokerage license as well as applies for Board of Investment Promotion. He has developed a specialty in contract drafting and providing advice on taxation

    The meeting will be on August 21, 2019 at 6.30pm at the Novotel Bangkok Ploenchit Sukhumvit, 566 Phloen Chit Rd, Lumphini, Bangkok 10330 (see Google Maps: https://goo.gl/maps/UuPgNhKgBmN2)

    FRANK Legal & Tax regularly hold public events, designed to support the business community in Bangkok.

  5. Starting a business in Thailand: Upcoming Bangkok Event

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    FRANK Legal & Tax will be holding another of our regular free events, designed to support the business community in Bangkok.

    The upcoming event will provide an opportunity to explore the topic of starting a business in Thailand. Starting a new business can be both exciting and challenging, particularly in a foreign country. By attending our workshop, you will acquaint yourself with the legal procedures for opening a business in Thailand and be more familiar with the programs and opportunities available throughout the Kingdom. Please register using the form on this page.

    In addition, Partner Fabian Doppler will briefly discuss the legal process for start-ups in Thailand.

  6. Bangkok Property Market Performs Strongly in 2017

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    In Q4 2017, the Bangkok condominium market grew steadily, particularly in the downtown area of the city. The number of new properties launched in 2017 overall also grew year on year by, with a 51% increase compared to 2016. Bangkok’s condominium market is likely to continue to grow in the future, given the many new mass transit lines and pipelines under construction (for example the MRT Pink Line, MRT Yellow Line and MRT Orange Line).

    Land prices and the lack of remaining downtown new development space has opened the way for new locations to become up and coming property hotspots. Projects that are in prime or new locations with appropriate pricing to compliment market demand continued to performed well.

    Due to the high proportion of units from projects that have been sold and that have been completed since 2014 in the downtown area, there does not currently appear to be a risk of oversupply in the area. Increasing land costs are a central factor that has resulted in price increases. More projects are opening up in new areas due to the construction of the approaching transport connections.

    During the past one to two years, the average selling price of new condominium units has continued to rise at approximately 15–20% annually. Condominium prices are expected to increase similarly next year, particularly in in the downtown area.

    Expatriates work permits in Bangkok increased 1.3% Quarter on Quarter and 3.1% Year on Year. Typically, expatriates have favoured certain areas and this continues to be the case, particularly the Sukhumvit, Silom/Sathorn and Central Lumpini areas, due to their easy access to the BTS Skytrain, along with convenient shopping and dining options.

  7. Court revokes EIA report on luxury Bangkok project

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    The Central Administrative Court has ruled against an environmental impact assessment (EIA) report of a high-end condominium development in the Bangkok Lumpini area, because it did not comply with the building control law and related regulations. The lawsuit was comprised of a group of 23 people and four agencies including the committee on building, land allocation and community service and the Office of Environment Policy and Planning.

    The court said the EIA report for the Mahadlek Residences Condominium project had been unlawfully permitted by a committee of specialists responsible for reviewing the report. The court ruled that the approval was unlawful and the ruling would take effect retroactively from April 3, 2014.

    In January, the Central Administrative Court withheld the project’s construction license. The license was distributed by City Hall’s Department of Public Works to the Office of the Privy Purse to construct the 41-storey condominium.

    The court said the Office of the Privy Purse is not a corporation, but a “unit” under the Bureau of the Royal Household with no power to pursue a license. This right is reserved for corporate companies.

    No project unit has been sold to the public yet, TFD CEO Apichai Taecahubol said.

    If you would like any legal help with your property purchase, please contact us: [email protected]

  8. FRANK Legal & Tax on MeetUp

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    FRANK Legal & Tax is pleased to announce that we have started a “MeetUp” group. The Group aims to to create a forum for entrepreneurs and business start-ups where information can be obtained and ideas can be exchanged.

    To see our profile and join, visit:
    https://www.meetup.com/Establishing-a-Company-in-Thailand/
    Our MeetUp events are planned to take place on a regular basis once a month.

    Please feel free to come along!

     

    Frank Meetup event bangkok

     

  9. Opening a bank account without a work permit at Bangkok Bank

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    On a more practical note, clients often ask us for assistance with opening a personal bank account in Thailand. Such an account offers a lot of benefits, but many foreigners, who are only visiting Thailand for a relatively short period of time, have faced problems with meeting the bank’s requirements. Most banks ask for a business visa and a work permit, even for the setting up a simple savings account. But a few banks are more flexible than that. For example, foreigners can open a savings account at Bangkok Bank, which is one of the major Thai banks, and apply for additional services such as Debit Card, ATM and Internet Banking, by holding tourist visa only and without holding a work permit.

    At Bangkok Bank, currently the documents that you need to provide are

    1. your passport,
    2. one further official identification document, such as a reference letter from your embassy, your home bank or another person acceptable to the bank.
    3. your address in Thailand as well as your regular address in your home country.

    Please feel free to contact us if you require assistance with handling your banking matters in Thailand.

  10. Bangkok Hotel Occupancy Rates 2013

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    The number of international tourist arrivals to Thailand in 2013 was a record 26,556,397 increasing by 19.8% Y-o-Y (year on year).

    The number of international passengers disembarking at all AOT-managed airports increased by 14.7% Y-o-Y to 23,336,162 in Bangkok and by 25.8% Y-o-Y in  Phuket. The largest feeder market was Chinese with a 17.5% share of total international tourist arrivals to Thailand in 2013. The number of Chinese arrivals grew by 69.1% Y-o-Y.

    Overall in 2013, strong arrival numbers resulted in rising occupancy rates, despite the number of rooms in Bangkok growing by about 10% Y-o-Y. We also saw a fall in the number of new building permits being issued for new hotels.

    We saw that room rates finally started to rise after being flat for five years. The performance of hotels of all grades in Bangkok had improved from last year. The average occupancy rate of hotels of all grades in Bangkok rose to 75% from 70% in 2012. The Average Daily Rate (ADR) was also on the rise at around THB 3,200 which was an increase of 7.0% Y-o-Y.

    Source: CBRE (Thailand)