Leases fail to renew because contracts are drafted incorrectly or because they are voided by death of the lessee, sale or transfer of the land, 3rd party hostile litigation, insolvency, wind-up or strike off of the lessor and deliberate fraud or breach of contract!
Check before you buyBtF’s structure mitigates all of these risks.
The investor holds the lease in trust which creates a corporate counter party whilst leaving them as the true owner and controller. This mitigates voidance on death; the Lessor’s Assets are Ring Fenced with 1st charge security Held by the Trustee which prevents sale and transfer of the land, protects the assets from litigation, insolvency, wind-up and strike-off and creates a trustee block on transactions that breach the contracts.
These protections extend to the Investor and Lessor as the Trustee Security encompasses both parties’ capital!
The Lessor has passed control of asset transactions to an independent Thai Law firm acting as Security Agent; they sign for lease offers, re-registrations, sales and transfers. The Trustee as Security Holder must countersign each transaction creating a Dual Fiduciary Lock on the property.
The Security Agent guarantees to sell the freehold if requested and make new lease offers and registrations at the appropriate time subject to contract compliance; failure to comply results in a Trustee Block until Fast Track Arbitration can settle the matter.
Developers typically try to avoid a new commercial offer because it undermines their selling price; if buyers thought they must pay the same premium again at 30 years they would discount leased property values by 35% or more! This is why they “Promise” a “Free Future Renewal”.
The Land Office will never accept a contract with these terms because they are the same terms struck down by courts! The Courts and the Thai Revenue require a new commercially priced registration (Bis 65.4)!
Renewals that rely on building ownership fail in a similar way; an obligation to buy a building will be viewed by courts as a “ruse” designed to force a new lease; courts will strike down agreements like this under Public Interest (CCC 150) because they seek to avoid the requirements of law which is a new commercial offer not a forced offer based on a buyback clause!
In any event, a building’s commercial value with no new lease is trivial and any lessor would make a handsome profit by simply refusing the lease and paying the low value bricks and mortar price for the building!
BtF does not say lessors will do this; we merely point out that they can and that the reason renewals are struck down by courts is because many lessors do decide to “Take the Money” at the point of renewal if a contract is unenforceable or enforceable in a way that delivers them a handsome profit!
BtF is about legal and enforceable contracts, a structure that maintains their enforceability and avoids court action if they have to be enforced! It is therefore more than a lease contract; it is a system offered by a professional Thai lessor (TIN Group) to guarantee the sale and renewal contracts it offers as legal additions to the registered 30 year lease.
The lease is registered on the land title for 30 years, the deposit against the option enables a registered 1st charge mortgage which blocks an illegal sale, Ring Fences the asset and supports the enforceable renewal process by allowing the Trustee to block any transaction that breaches the contracts.
It does not force a renewal, the Security Agent offers for the Lessor, Arbitration decides if they fail to comply, courts enforce arbitration if they breach their obligations to act in line with the law under law society rules.
The land is held by dedicated Thai Lessor whose assets are Ring Fenced by the Trustee’s Security and protected against insolvency, hostile litigation, wind-up, strike-off, fraud and contract breach.
The lease is held in Trust; you own and control it but you enjoy the “Corporate Cloak” provided by the trustee that ensures the lease and contracts endure if you die; under the trust assets pass seamlessly to your heirs and you enjoy personal asset protection in Thailand!
There is no need to re-register lease rights at the land office on death or sale of the lease and option rights which can simply be assigned to a new buyer.
The Thai Security Agent follows the contracts; they are a preference shareholder in the lessor and wield their power as the legal Thai Counter Party; the mortgage requires the Trustee to countersign any transaction which creates a dual fiduciary signature protocol that protects the Investor and Lessor.
Any disputes between the Security Agent and Trustee are settled by Fast Track Thai Arbitration which avoids court action.
You can sell the freehold or assign your lease rights “Tax Free” to a new buyer within the trust. The final tax treatment in Thailand and abroad depends on your tax residency.
BtF places the value in a refundable deposit against the option to sell, not the lease. This is why its commercial renewal value is 1% of the OMV not 65%!
It is why BtF can contract as required for a commercial premium review because that commercial premium is not prohibitive! Avoiding legal contracts does not avoid Thai Revenue enforcement; traditional leases must be registered at commercial valuations!
The structure is ring fenced and designed to preserve and enforce the contractual obligations and rights of all the parties. The Trustee is protected by the Labuan Financial Services Authority which is a Malaysian Government Agency (Thailand does not have Trust Companies under its Civil Law).
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Structured correctly as a future new offer registerable upon acceptance.
No; these are illegal and unregistrable at the Land Office; this is a new lease offer, based on the commercial increase in property value multiplied by the option premium (less than 1% of OMV).
You own a registered lease and a legal contract to sell the freehold or have unlimited new lease offers and registrations on acceptance until you do sell; this is secured by a 30-year registered lease and an unlimited term registered 1st charge mortgage.
The Land and Buildings are owned by the Thai Lessor, their “Value” is contracted for sale and secured by the option deposit and the 1st charge mortgage that protects it.
A company with nominee shareholders is illegal. Phuket's Land Office has examined 361 companies over foreign-held land and filed 114 lawsuits, and the Deputy Interior Minister has said land held through nominees must be sold.
Your rights pass to your nominated heirs without Thai probate or a new Land Office registration.
Not yet. The structure is designed so lenders can take security over it, and financing is expected from H1 2027. Nothing is offered until then.
It depends on the property. You'll get an indicative quotation, free, and nothing is signed until you've seen the full costs.
Yes. Independent legal advice should always be taken before you sign anything, TIN Group the Lessor can supply contract terms and its legal opinions.
The property freehold is sold to TIN Group the Thai Lessor; they issue a registered lease to SPH Trustees, a registered 1st charge mortgage and an option contract, all of which are legal and fully comply with land office protocol.
They exist already, the minute you sign up to the trust you engage the full security package including the Thai Security Agent, share pledges and other agreements that protect the property assets and which have been established by the Thai Lessor and Trustee.
No, the Lessor and Security Agent are wholly Thai owned and trade for profit; they are the Thai shareholders in the Lessor company. The Trustee and your own rights arise from simple and legal contracts that are enforceable in court but enforced by the Security Agent or Thai Arbitration; the trustee’s counter signatory acts as a block subject to Arbitration not as any foreign control. The trustee rights arise from the legal security that Thai Law allows foreigners to hold.
The Trustee makes you a corporate entity in Thailand, but you maintain personal ownership and control under Labuan (Malaysian) Trust Law. You simply operate the lease in Thailand under licence as the lessee. The Trustee also Holds the Security; this protects all the assets in the Lessor and Security Agent for you and the Thai shareholders. The Trust Acts as the Ring Fence in Thailand that prevents corporate failures, contract breaches and fraud through an array of security that includes mortgages, share pledges and BSA security.
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