Questions & Answers

2. Land Lease and Villa Purchase Agreements Part 1/2

Q 2.1: How will my villa purchase be legally structured? Does The Six Senses Hideaway Yao Noi offer freehold land?
A 2.1: With limited exception, Thai law does not allow foreigners to acquire freehold land. Foreigners, however, are able to lease land in Thailand, and to actually purchase the building that sits atop the land being leased. Thus, the Six Senses Hideaway Yao Noi will offer you a long land lease, and will allow you to purchase the villa that sits atop the land you are leasing. Ownership will be legally structured via a Master Agreement, a Lease Agreement to include lease obligations, easements and regulations, and a Maintenance and Management Agreement. Villa construction will be legally structured via an Individual Construction Contract with our Contractor and a Construction Management Agreement with a company in our Group who will act as Owner’s representative. These agreements will, among other things, collectively regulate the management of the villas and landscaping, limit usage to residential use only, establish maintenance fees for common areas of the property, establish easements on roads and paths to facilities and beaches, and create a management relationship with The Six Senses Hideaway Yao Noi Resort.

Q 2.2: What are the land lease terms?
A 2.2: Under current Thai law, the maximum term of a land lease is 30 years. However, the Six Senses Hideaway Yao Noi offers you 3 automatic lease extensions of 30 years each. Therefore, the total duration of your lease would be 30+30+30+30= 120 years. Should the laws on foreign ownership alter at any later stage The Six Senses Hideaway Yao Noi will not reasonably withhold any such conversion. 

2. Land Lease and Villa Purchase Agreements Part 2/2

Q 2.3: Does the land lease need to be registered?
A 2.3: Yes, any land lease longer than 3 years must be registered with the local authorities at the Land Department where the property is located. A Lease Registration Fee of 1% and stamp duty of 0.1% of the rental of the land for the first 30 years is then collected by the Land Department, (subject to change by the Land Department). You do not need to be present at the Land Department to register the lease. You may authorize a representative to undertake the registration on your behalf or appoint the Six Senses Hideaway to do so.

Q 2.4: What is the cost of the lease rental? Do we need to pay additional rental fees for the automatic lease renewals The Six Senses Hideaway Yao Noi is offering?
A 2.4: The rental fee will be proportionate to the land size and value. The rental amount will cover the initial 30 year land lease, plus the three 30 year lease extensions. No additional lease rental fees will be required of you. At the time of each renewal, however, the lease must be re-registered with the Land Department. A lease registration fee of 1% and stamp duty of 0.1% of the rental of the land for each 30 years’ period (subject to change by the Land Department), will be payable to the Land Department at the time of each renewal in order to process the registration.

 

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