Phuket Post :: Article :: IBAP Legal Eagles report

There were several questions posed to the Legal Eagles panel at the recent IBAP evening, at Phuja Nirvana on 11 August, but for this article I should like to focus on a few of the key questions and a summary of answers. The answers on the night were obviously more detailed given the time available to panelists to answer. I have written the questions verbatim in the style they were posed.

QUESTION: Is a person�s one-year visa revoked if it is based upon the premise of a work permit from a particular company when that person leaves the company?

ANSWER: This could result in having to travel outside Thailand for new business visa, reapplication for work permit and one-year visa. There is a short period of 7 days during which new employment and a revised work permit may be issued. Ultimately, an individual may have to leave and re-apply. Practically, applicants should apply in time.

QUESTION: What land title is issued to the owner of a shophouse and is the owner entitled to use of the land in front of and behind said shop house?

ANSWER: You see many instances of shop house owners reserving the space in front to park their car and also space in front being rented to stall holders. Chanote is the ultimate land title. Shophouse operators or owners of numerous shop houses will typically apply for a development licence and therefore the buildings will be regulated in terms of space and access. If the title is boundaried at the front of a shophouse, then any use of the land in front will involve the use of public land between the road and the property�s boundary. If a street trader uses this land they may negotiate rent with the shophouse owner, but this is a matter of tradition and courtesy, not law.

QUESTION: The following is copied from the Bangkok Post: �a cabinet resolution in 1995 also barred the issuance of title deeds for land on slopes over 19 degrees to prevent landslides�. There must be developments all over Phuket on slopes greater than 19 degrees, so how will this decree effect such developments?

ANSWER: There are various edicts from authorities relating to building restrictions which vary from place to place. For falsely declaring information on a construction permit application there are criminal as well as civil liabilities. Some restrictions have been relaxed during particular periods of time in various provinces, perhaps accounting for some units which exist in what appear to be restricted areas.

QUESTION: What is the best, legal, way for a foreigner to retain control over a property where the foreigner has supplied the finance for purchase of the property?

ANSWER: Ownership of part of the 49% quota in a condominium block available for foreign ownership.

QUESTION: Is it true that a 30-year lease can be automatically extended or is it just a sales pitch? What happens to such a lease in the event the owner of the land and signatory to the lease dies or wishes to pass on the land during the term of the lease?

ANSWER: Any renewal is a contractual matter between the parties to a lease. It is not automatic but a lease can be drafted to place strong protections for the lessee in the event of breach by the lessor. If the owner dies, there may be the practical matter of dealing with a lessor who may not be as content about renewing a lease as the original lessor. Again, contractual protections can be used to assist here but there is a risk associated with leases between individuals. Corporate individuals that are lessor�s will not die, and are unlikely to leave Thailand but the financial position of the lessor should be examined. If the lessee dies the lease can be written to provide for rights of beneficiaries, successors etc to receive the rights of the lessee.

Desmond Hughes is a partner in Belmont Limcharoen.
Tel: +66 (0) 76 342 882-4
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desmond@belmontlimcharoen.com
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