While enjoying the warm weather of Thailand, among the least of your priorities as an expat-retiree is hiring the services of a law firm. This is understandable because your primary aim is to enjoy and make use of your stay in Thailand’s top tourist and expat drawing southern Thailand rather than worrying on legal matters that may even spoil your plans.

However, in reality, you can never help it not because of a Thai law mandates you but your future transactions will eventually require you to hire one.

Property Acquisition or Rental

If you opt to rent or acquire a villa as your place to stay while in Thailand, you will really need to enlist the services of a law firm.

You have to make sure that what you are buying is free from any legal problems by doing Thai Due Diligence and ThaiTitle Search. Through these process, you will know for certain whether the documentations are in place and authentic and that the person who is trying to sell you the property is the actual owner or the legally authorized representative of the real owner of the property.

If you are also going to rent especially if you are looking forward for a long term stay on the said place, you can also make use of both Thai Due Diligence and Thai Title Search to provide you with a piece of mind as the thought of being ordered to vacate the place you have on a long term lease is as dreadful as it can be.

A law firm can do both for you and it can do them quite extensively considering that it has the edge especially on accessing legal documents and records. It has the capacity to dig deeper regarding a property or its owner’s background by research court records, an action of which only Thai-registered lawyers are allowed to do so.

Visa and Immigration Matters

You may have grown to love Thailand the more you explore it and thinking about the expiry date of your Non-Immigrant "O-A" Visa can worry you that much.

The Thai immigration laws and procedures can be very confusing for expatriates like you. Also, having all the required documents does not guarantee you and approval for your re-application or extension of stay as a retiree in Thailand.

Therefore, if you have a law firm in Thailand to assist you, the burden will be considerably lessened.

Contracts and other Legal Agreements

Your unfamiliarity with the Thai language, laws and procedures makes you vulnerable to certain deals not because the people you are dealing with are actively aiming to shortchange you but because you lack the knowledge of these.

Your law firm will be your vanguard when it comes to contracts. It will be the one which will review the proposed contract, interpret legal terminologies and the official language used, propose amendments if necessary to protect your interests and ensure that your rights as a foreigner-retiree are respected and intact.

Matrimonial properties and their attached rights of claims and ownerships may seem to be irrelevant if a couple is having a harmonious marriage. However, the same cannot be said if the said marriage will end in a divorce, the type of which that involves litigation, as one party may lay contentious claim over a property of the other spouse which was acquired before their marriage and the involve exchanges between the two opposing sides can be very stressful for anyone who is involved.

First, there are two types of Matrimonial Assets in Thailand: (1) The Sin Suan Tua or personal property and (2) the Sin Simoros of the conjugal/matrimonial property.

Sin Sua Tua

1. A general characteristic of the Sin Sua Tua is this property has been acquired by a spouse before their marriage therefore the right of ownership rests with the one who acquired it.
   • i.e. The family car was purchased by the husband before he got married with his wife therefore even if the whole family, including the wife, uses it, the said property still belongs to the husband.
2. However, even if acquired during marriage, a property can still be considered as a personal property when this has been acquired using a will or gift.
   • i.e. The wife acquired a chicken store as her inheritance from her father.
3. Additionally, properties for personal use are considered as Sin Sua Tua.
   • i.e. Books and clothing of a spouse.

   If the said properties are subjected to a sale, the proceeds of which will not be considered as conjugal or matrimonial as the properties sold are Sin Sua Tua in nature.

4. In Thailand, a dowry or Khongman is still practiced by many families.
   • i.e. The husband gave his wife a pair of cattle as part of his dowry.

Sin Simoros

1. The striking distinction between the Sin Suan Tua and the Sin Somoros is that, the Simoros are the pieces of properties acquired during the couple’s marriage.
   • i.e. The couple bought a house within their marriage. The house new house is considered as a Sin Simoros.
2. Section 2 of the Sin Sua Tua stated that if these properties are acquired through the enforcement of a will, the said properties will be personal in nature. But, this provision will not take into effect a provision in the will says otherwise.
   • i.e. The late father of the wife left a will which contained a provision that said: "All acquired properties through the use of the assets inherited by my daughter with my will shall be treated as conjugal in nature."
3. Income earned from a property of personal in nature.
   • i.e. The income derived from the personally owned chicken store of the husband are considered matrimonial.

Other Considerations

1. When a personal asset is used to acquire another property, the newly acquired property shall be considered as a personal one.
   • i.e. The husband bought a television using his own money, such television is considered as his personal property even if the whole family uses it.
2. When there is doubt in terms of ownership on a certain property, the said property is considered as Sin Somoros in nature.

So you have identified Thailand as the ideal place for you to enjoy your life as a retiree. Well, you just made a good choice considering that Thailand has everything that every retiree like you needs like warm tropical weather, top class hospitals, good food and of course, great commercial centers.

Also, in case you need an expert legal advice, you do not have to travel all the way to Bangkok to get one unlike some places frequented by expatriates where you need to travel to the capital or to a large city just to secure such legal advice.

However, as a retiree in Thailand, you cannot just do everything you want. Even if you are contributing to the local economy with your spending, you are still bound to fully grasp your responsibilities as an individual and as a foreigner-retiree. Therefore, you have to be a desirable retiree in Thailand.

Don'ts

• Do Not Commit Illegal Acts – a good mix of nationalities can bring about undesirable consequences therefore there can be a chance whereby you will found yourself on a brink of doing a crime or that you know someone who has done a crime. If you think you are getting close to committing something illegal, restrain yourself otherwise you will suffer the consequences of being fined, imprisoned or a combination of both and after your prison sentence, you will be deported.
• Do Not Disrespect the Thai Culture – the Thais are among the most obedient when it comes to respecting and practicing their culture. If you have decided to come to Thailand and retire or if you are already in Thailand, allow yourself to know more about the culture. In case that there is something in the Thai culture that you seem to be confused with, do not ridicule or make insulting actions. Just give due respect to the culture of your host country and be sensitive to the things and people around you.
• Do Not Disobey Any Thai Laws – if you are a law abiding citizen in your country, then continue being one when you are in Thailand. If you are not, then stop doing undesirable acts otherwise you will find yourself facing the Thai court, be sent to prison and suffer severe punishment.

Dos

• 90 Day Reporting – since you are already given with a Non-Immigrant “O-A” Visa and granted to have a 1 year continuous stay in Thailand, you are still required to report to the Immigration authorities so that they can verify your place of residence every 90 days.
• Renew – if you are planning to extend your stay in Thailand, renew your Non-Immigrant “O-A” Visa before it expires. Do not allow it to reach its expiry date or you will have to exit the country and apply for another retirement visa.
• Effective Budgeting – not because you have an ample financial stature, you can simply spend extravagantly while staying in Thailand. Remember, you are a retiree with a Non-Immigrant “O-A” Visa, meaning to say, you are in Thailand to relax and enjoy but never you will be allowed to work in case you will need to because your funds are running low. Anyhow, you can still enjoy your retirement even if you are spending your money wisely.
• Take Good Care of Your Health – there are a lot of things to experience and enjoy in Thailand and if you are not taking good care of your health, you may end up having spending some days of your retirement at one of the kingdom’s top hospital.
• Three Wise Moves – if you are planning to have a property on long term lease, then you must do Due Diligence, Title Search and Contract Review to secure yourself from possible lawsuits in the future. Though consulting with fellow expats may give you an idea or two, soliciting the services of a reputable lawyer in Thailand for all three can protect you from entering to a possible pitfall in property acquisition. More than that, your lawyer in Thailand can also be of great help when it comes to visa-involving issues.

So when retiring in Thailand, making and doing wise decisions will only further your enjoyment of the kingdom. Just do the right things that are expected of you as a visitor in Thailand and you will find yourself in satisfaction of everything that the kingdom has to offer.

Of the types of company structures in Thailand, the Limited Company is among the most favorable for foreign business owners because of the limited liability on debts and losses of the owners of the company.

The capital of the Thai Limited Company is divided into shares and the liability of the shareholder is limited to the amount he infused.

Under Section 1098 of the Civil and Commercial, the Memorandum of Association of the company must have the following characteristics:

1. The unique name of the company must contain the word “Limited” and should be placed at the end of the name.
2. The location of the company inside the Kingdom.
3. The objects of the company.
4. A declaration of the shareholder’s limited liability.
5. The amount of share capital that the company proposes to register and its divisions into shares of a fixed amount.
6. The promoters’ names, address, occupation and signature. Their number of subscribed shares must also be stated.

Although the liability of the shareholders of the company is limited, the liability of its directors may be unlimited. Such unlimited liability will expire two years after the date of a director’s cessation in holding his office.

Other characteristics a Thai Limited Company may have:

• In case of bankruptcy or death of a shareholder, may register another person as a shareholder provided the dead or bankrupt shareholder’s surrendered his share certificate.
• If allowed by the regulations of the company that a director can own shares, the shares he is holding must be on the name certificate.
• That the company must be managed by a director or directors under the control of the general meeting of shareholders and in accordance to the regulations of the company.
• A shareholder’s general meeting must be held inside 6 months after the date of registration and subsequent ordinary meetings shall be held every 12 months.

Essentially, there are two types of Limited Companies and these are:

• • Thai Private Limited Companies
    • A company registered under this subtype is governed by the Civil and Commercial Code.
    • Requires at least seven shareholders.
    • Its constitutive documents include the Memorandum of Association (Articles of Incorporation) and Articles of Association (By-laws).
    • If prescribed on the articles of incorporation or articles of association, the directors’ liability can be unlimited. Moreover, they manage the limited company as afforded by the firm’s charter and by-laws.
    • The Thai private limited company may be wholly owned by foreign nationals but in company operations reserved for Thai nationals, the alien-owners’ participation is limited up to 49 percent only.
    • Registration fee is 5,500 baht per million baht of capital.
  • Public Listed Company
    • A company registered under this subtype is governed by the Public Company Act.
    • Requires at least 15 shareholders.
    • The shareholders are not allowed to sell/transfer their shares within the prescribed period of two years.
    • The board must have at least five members with Thai nationals comprise at least half of the total.
    • Is subject to comply with the prospectus, approval and other requirements, offer shares, debentures and warrants to the public and may apply for its securities be listed at the Stock Exchange of Thailand (SET).

Drawing up a Thai last will and testament seem to be a straightforward process. On a certain perspective, preparing one is as simple as formulating a draft of a thesis a paper and then submit it when the deadline comes.

On another viewpoint, it is a piece of document that really has the potential to make or even break a family, depending on how the last will and testament is done, on the terms and conditions used and where it has been drafted for execution.

When you transfer and make Thailand your new home, there is always a potential that you will be able to procure assets for you and your family, especially if you will be staying for a long time.

Prior to your transfer in the Kingdom, you may already have drawn-up your last will and testament in your country. Will the document pose any problems for you? Well, not really if the assets listed in your will is located in the country where you executed it.

However, problems may arise when:

• You have drawn up a Thai last will and testament in another country for your assets in Thailand.
• Accuracy of translation of the terminologies and other key parts of your will is questionable.
• A lengthy and costly court proceeding is needed to make your will acceptable and executable in Thailand.

The Last Will and Testament is drawn-up in another country

Generally, if supplemented with a Thai last will and testament that is drawn up in Thailand, executing your Thai will that was formulated outside of Thailand should pose no potential problems. It will still be enforceable in the Kingdom.

Problems may arise when the process in making it acceptable in Thailand is set in motion.

A Thai last will and testament needs to be in detail and not all terminologies used to describe each asset have an accurate translation from your mother tongue to Thai.

Also, after the translation process, your outside of Thailand-drawn up Thai will and testament will become a subject in a court proceeding.

If your immediate family or the people who will be recipients of your assets are located within Thailand, travel costs will be minimal. But, if they are located outside of Thailand, traveling to the Kingdom for a number of court hearings entails huge financial and physical burden on their part.

Court hearings tackling on a last will and testament case normally takes a number of months before a decision is made making the whole process lengthy and costly for everyone involved.

The Best Option

While your Thai last will and testament that is drawn-up outside of Thailand is enforceable within the Kingdom, it is not the ideal venue that you must take to distribute your assets.

What is more efficient is for you to draw-up an equivalent last will and testament in Thailand because aside from saving time and effort, inheritance tax will not be imposed anymore thereby saving your inheritors some money.

Surely, you will be enlisting the help of a lawyer in Thailand as you make a draft of your last Thai will and testament but you have to remember that not every law practitioner in the Kingdom are good in both English and Thai.

Therefore, it is much better if you can find a lawyer who is fluent in both languages as terms will be translated more accurately.

When purchasing a property, be it in Thailand or in another country, conducting Thai due diligence must be a standard practice. Any interested party has the right to know everything about the property, its attached documents and the background of the person or entity he is dealing with and Thai due diligence can provide him with the right information.
Surely, it entails expenses on the part of the person wanting to purchase a property but these expenses are necessary to minimize if not to extinguish any possibility of him spending more than what he should because of litigation costs and lawyers’ fees in the future coming from an ill-advised acquisition.

It is understandable that property agents, developers or private persons dealing their properties may use convincing terms primarily because their aim is to sell or to reach a deal. On the other hand, those purchasing properties just have to employ various safety checks including due diligence to protect their interests.

How due diligence would help a property buyer?

The attached documents must be in order. Meaning to say, the land title must be authentic and it should also be the right type of title allowed to be sold, mortgaged or leased. Also, the applicable permits should be secured by the developer.

Further, if it is a development, the background of the developer must be closely studied like its financial capacity to finish the project and if it is not involved in any previous or ongoing litigation proceedings.

And lastly, due diligence will help determine if the details found in the title deed do reflect physically i.e. the presence of an access between the public road and the property. Additionally, Thai due diligence can help determine if the actual boundaries of the property do coincide with that of the title.

Any discrepancy of the documents and any involvement of the developer to a court case should raise a red flag to property buyers. This makes due diligence crucial to every property purchase as the earlier it is to be conducted, the earlier the discrepancies can be corrected or avoided.

Hire a Thai Property Lawyer

Prior to any commitment or agreement with the seller of the property or before a payment would be made, the interested party must approach and consult with a Thai property lawyer. Apart from the points raised on this article, he must also inquire with the Thai lawyer the procedure that is due diligence and how this would benefit him.