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Buying Property in Thailand: Culture Shock for an American 0

By Henry Jimenez

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Life Before Thailand

I first came into contact with Thailand many years ago, when I was a young man in the US military. At that time, the US had a significant presence in Thailand and I had the opportunity to spend several months in Bangkok and the air force base in Uthai Thip. I did the usual things a young sailor would do on short leave and I always left Thailand with a lasting impression of its friendly people, pleasant climate and excellent food. After I was done with my military service, I got married and started a family. From time to time, I reminisced about the good times in Thailand and the wonderful feelings for the country and everything that it encompassed.

About five years ago, my wife passed on. I was not at my emotional best after my wife's death. My mental health had hit an all-time-low as I was still grieving over her death two years on. This, along with my impending retirement, caused me to reevaluate my priorities in life. My children were all grown up and independent; everyone had set up his own family. I wasn't keen on the dating scene for seniors as it wasn't my style, and most importantly, I didn't feel like a senior citizen. The youth-oriented American culture, however, didn't make it easier for me as I felt discriminated against because of my age.

Retiring in the Land of Smiles

I began traveling again in 1999. There was a work-related conference and exhibition at the Sirikit Center in Bangkok, and I took advantage of that to combine work with pleasure. Subsequently, I returned to Thailand for vacation on many occasions. I visited almost every well-known province such as Ko Samet, Koh Samui, Koh Chang, Phuket and Chiang Mai. On those trips to Thailand, I met my future wife, Nopdara. She was then working for an international company and her ability to speak fluent English helped us to communicate and build a relationship.

Finding my soul mate at this stage of my life was totally unexpected. We made plans to marry after an abbreviated courtship, but there was a question of choosing a place where we would both be comfortable settling down in. Nopdara didn't want to move to the US and be away from her family, but more importantly, I was tired of my life in the US, the high cost of living, and the unforgiving anti-geriatric society. With all this in mind, I made the choice to retire in Thailand and married Nopdara. Once the decision was made, I began attending Thai language classes and did my research on real estate.

Seeking Legal Representation in Thailand

Needless to say, retiring in Thailand would mean that I needed a home. I have always preferred buying to renting, and retiring in Thailand didn't change my view. My wife and I have been looking around for months and we finally found a piece of land near my wife's hometown in Northern Thailand where we could build our new home. For me, it was never a question whether legal representation was necessary to complete the transaction. Back in the USA, I would never complete a real estate deal, or any important matter, without a lawyer. So it was with the search for some legal representation that first shed light on some basic cultural differences between Nopdara and me.

Nopdara believes that you never hire any professional unless it is a life-and-death situation. She has never hired a lawyer in her entire life and certainly didn't see the need to for our land and property purchase, especially when we could seek the help of her brother-in-law. She argued that her brother-in-law is a police officer and he knows the law better than lawyers, so we should purchase the house and land with his help. She added that he would not even ask a fee from us. I was not, to say the least, comfortable with this approach; buying land and property in Thailand without a legal representative would be inconceivable. Besides, it would leave us indebted to another Thai relative, and who knows what favors he would ask from us in the future.

After some lengthy and sometimes heated negotiations, I've finally managed to out-talk Nopdara in the merits of hiring a lawyer. So, we began making calls and doing our search for Thailand lawyer websites. I began searching internet forums and message boards in Thailand for information on land and property as well as issues relating to a foreigner retiring in Thailand. Many people had the same questions that I had - how to buy land or property in Thailand; getting married with prenuptial agreements; long-term visas; and settling down in Thailand. The problem was that the answers to these questions were sorely lacking and the information provided was vague and often, contradictory. So much for trying to get important information from amateur web-boards; it's akin to asking the first person you meet on the street which stocks to invest in.

US Property Versus Thai Property

Back in the US, I have done quite well by investing in and then re-selling residential properties which included land, condos and houses. I have focused only on property in high-demand areas, even if the current price seemed high. I have always believed that it was better to overpay for a property which was more likely to appreciate, than to get a good deal on a property in a less desirable area.

This is not to say, however, that I had overpaid for any of those land, condos or houses that I had purchased. I used to research quite intensively on real estate and had attended numerous foreclosure auctions. I discovered that by persevering and spending ample time following through on the auction and the purchase, I was able to purchase property at below-market value. This was because many people whom I was competing with often decided not to follow through or lost interest as a result of the long process.

With my real estate experience from the US, I tried to use the same methods to buy land and property in Thailand. I discovered that things were very different in Thailand in terms of land or property purchase. First of all, I wasn't allowed to buy land. Real estate agents in Thailand seemed to represent mostly the sellers, or worse, these agents were actually the sellers themselves. The foreclosure process that I had so much success with in the US was completely unusable here. The language barrier, the red tape and the bureaucracy were proving to be too much of a challenge.

In Search of Thai Law Firms

I began contacting law firms in Thailand, but I ran into language problems. These law firms often had Thai lawyers who were not fluent in English, and they were mainly geared toward Thai clients. There were a few Thai lawyers whose English was passable, but they just didn't inspire confidence. As a foreigner, I knew that there would be special issues involved in buying property or land in Thailand. I had a lot at stake and I needed a law firm that I could trust and build a long-term relationship with.

I also contacted many real estate companies in Thailand. Many of the companies offered me the option of purchasing land or property through a Thai company. However, when I asked for details on these Thai company shareholders and how I would be protected legally, their answers were not reassuring. For me, it seemed like a conflict of interest for the real estate company to sell me the land and still own 51% of my "company". Not to mention the fact that I had no knowledge of anyone in my "company". One real estate company even told me that the Thai shareholders would be names picked straight out of the phonebook.

Thailand Lawyers

I started contacting law firms with non-Thai partners. I found that there were actually many lawyers from the USA, UK, Australia and other western countries working in Bangkok. The larger law firms, however, seemed primarily interested in having big companies with huge investments as their clients. I was worried that my legal matters would be treated as trivial and secondary to these high net-worth clients.

My criteria for selecting a law firm were simple: a reasonable fee structure (I wasn't looking for the cheapest law firm, but one that would deliver results at a reasonable price); English-speaking staff; credibility; and a good knowledge of Thai laws that are applicable to foreigners.

After doing research on Thailand Law Forum, a non-profit website on Thai legal matters, and gathering enough general referral information, I decided to go with a Thai law firm in Bangkok, managed by an American lawyer. Joe Leeds of Siam Global Associates impressed me for a number of reasons. Firstly, he's a licensed American lawyer who has 10 years of US law practice and an additional 15 years in Thailand. He is also fluent in Thai and his firm specializes in the kind of work that I needed.

Many of the foreign consultants working in Thailand did not seem to have any background or qualifications as lawyers. They seemed to have just woken up one morning and decided that opening a law office would be a good way to make money. Unlike many of the "foreign consultants" working in Thailand, Joe is a real lawyer, licensed and accredited (He even looks lawyerly). His wife, Chaninat Leeds, is a Thai lawyer and a professor of law at one of the biggest universities in Bangkok. She is also a principal in the firm.

One thing that irked me was the inability of many foreign lawyers at large, international firms to speak a decent level of Thai. They seemed to be totally reliant on the views of their Thai associates and subordinates; how could they manage a case if they were totally reliant on their subordinates? This was never a problem with Joe, who spoke excellent Thai.

I took Nopdara to Joe's law firm for our first legal consultation. Being a typical female who couldn't get her way, she sulked and complained the whole way. Now it was not just a difference of opinion; she had felt that by using an independent lawyer, it was somewhat an affront to her police-officer brother-in-law. Keeping in line with the universal palliative in Thailand, I would have to buy her brother-in-law a bottle of whisky to make up.

Building Our Home - The Local Way

After all the legal work has been finalized, it was time to start the home-building project. I couldn't deny Nopdara's request to hire her nephew and his construction crew after having refused to engage the help of her brother-in-law, the cop. Hiring lawyers is one thing that I feel I have to be selective about, but when it comes to hiring unskilled construction workers, I was happy to let my wife reign over me.

When her nephew and his crew arrived at the site, I knew I was in for an experience. They seemed to have brought their village along with wood scraps that I would soon find out more about. Before I could see any groundwork laid on the site, I was greeted with the sight of their ramshackle housing made out of tin and used wood. I questioned my wife what this was all about. She explained that her nephew and his crew had to live on-site to keep guard on the materials. This seemed somewhat reasonable and I accepted this explanation when I noticed that they also built a small pen and brought chickens. I looked to my wife for some answers and seeing my baffled face, she said, "Well, they do have to eat, don't they?"

So, I made another concession. I had tin shacks in our yard and chickens running around. Roosters crackling at the top of their voice and waking me up in the wee hours of the morning. Our yard also turned into a drunken party venue inundated with Issan folk music every night. Finally, after a year of construction, our house was completed. Now, I'm enjoying my retirement in Thailand, in the company of Nopdara, kind friends and a trustworthy lawyer.

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Comments about this Article

guest
Jun 27, 2011 04:23

That was a great story had me on the edge of my seat all the way ,I am allso moving to thai & have a Thai wife of 8 years now we want to live in Thai , would like to have the address of Mr Leeds compay will need a good lawyer for the future. Regards Rodney from " Auss"

guest
Aug 11, 2011 04:18

I think you enough experience to set up consultant service for another expat. From a Thai who live in the U.S. for long time and now back in Thailand and still have some difficulty with Thai. sammy

First Published: Oct 09, 2005

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