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Legal Issues Sales Brief
Owning a Property in the ‘Khao Khad Bay Villas’ project
The developers of the Khao Khad Bay Villas project and an experienced legal team have worked together to produce an up to date, comprehensive and secure as is practicably possible legal pack for the project.
The Khao Khad Bay Villas Project offers the following secure method of ownership:
1. Purchase a secure and registered leasehold interest which clearly sets out the initial term of 30 years with two additional irrevocably granted renewal periods of 30 years each (30 years, plus 30 plus 30 years).
2. Ownership of the buildings (Foreigners in Thailand can own buildings in their own name).
3. An indirect participation in the landowning company allowing you (in conjunction with the other Buyers) to direct the landowning company to renew the lease periods.
The land owning company is set up to be compliant with Thai law.
From Reservation to Legal Ownership
In order to own your villa:
1. Complete and return the Reservation Agreement and the Reservation Deposit
2. Conduct your due diligence into the property and the project
3. Execute all contracts and make your first payment
4. Make payments tied to construction milestones until the transfer date
5. Pay the final balance followed by registration of legal ownership of the lease and building.
Execute Reservation Contract
We will provide to you the Reservation Agreement applicable to your chosen unit. You must sign and return this to us so we can sign and return it to you as an executed contract together with the contractual documents. The deposit is non-refundable.
As you are investing in property in Thailand, you should ensure that all remittances into Thailand are marked “to invest in real estate”. If you pay direct to our bank account we will obtain the Foreign Exchange Transaction Forms which will assist you send monies back out of Thailand should you wish to in the future. If you transfer to another bank in Thailand first, then you must obtain the required forms. If you have any doubts, please consult your bank. The Bank of Thailand restrictions (recently repealed) do not apply to leasehold acquisitions and building acquisitions
Conduct Due Diligence
Certain buyers will have their own lawyer or adviser to assist them with a purchase. Our lawyers can provide your lawyers with the information required to satisfy a thorough due diligence process and so that the time required is limited to 30 days:
(i) We supply pre-prepared contractual documentation
(ii) We supply you with the estate management details, details of which will be provided to you with the pre-prepared contractual documentation.
You may elect of your own free will, not to engage a lawyer.
In the event that more than 30 days pass before the execution of the contractual documentation, the reservation contract will expire and the property will be re-marketed. The reservation deposit is non-refundable.
Execute Contracts and make the first payment
When your due diligence is complete, you must execute all of the contractual documentation. Prior to finalising the contract you should submit any minor modifications that you might wish to make to your unit and settle any additional costs to be included in the contract price.
Payments are tied to construction milestones
Each payment that you make will relate to the progress of construction. Ultimately, in the contract, there is a “long-stop date” or final date by which legal title must be transferred to you. Throughout this process we can provide you with a construction report at regular intervals.
Pay the Balance and legal ownership is transferred
A leasehold interest with renewals, is a unique and secure type of ownership of property for foreigners in Thailand. It avoids the use of ‘Thai companies’ and ‘nominee structures’ by foreigners.
Any buyers who opt for the leasehold route will at the point of full payment, have their leases registered in their name or their designated entity.
