Buyer's Guide

The following summary explains the legal arrangements for the acquisition of your villa at The Grove Villas.

Background
The legal arrangements made for the acquisition of your villa at The Grove Villas is the simplest and most appropriate form of ownership for foreigners.
Foreigners are generally not allowed to own land in Thailand for residential purposes. Foreigners may however legally own a building separately from the land on which it is built.
As a result, buyers at The Grove Villas will enter into a long term leasehold of 90 years for the land plot on which their villa is built. The lease made with the land owner, Grove Villas Co., Ltd, will be registered at the land office in Hua Hin. Buyers will receive shares in Grove Villas Co., Ltd., so that they will have full control of their land plots and the common areas of the Project.

Buyers shall enter into the following agreements for the acquisition of their Villa:

  • Land Lease Agreement
  • Sale and Purchase of Villa Agreement
  • Sale and Purchase of Shares Agreement
  • Management Agreement

1) Land Lease Agreement
The main features of the long term land lease agreement are:

  •  Buyers will be granted a 30 year lease of the land on which their villa will be built. This is the maximum lease period allowed by Thai law.
  •  Buyers will also be granted an irrevocable option to renew their lease for another 30 years for two consecutive times (30 years for each time). The total consecutive lease period is 90 years.
  •  During the lease term, if the law changes so that land may be leased for longer than 30 years at a time, the Buyer has the option of registering the additional lease period of their plot.
  • The Buyer is granted the option to acquire the freehold title to their plot of land should Thai law change to allow foreigners to own freehold land.
  • To secure the lease rights of the Buyer, the lease will be registered at the Hua Hin Land Office when construction of the Villa has been completed. The Buyer shall be responsible for any taxes, fees, and any expenses arising from the land lease registration. The taxes and fees payable on registration are equal to 1.1% of the lease rentals.
  •  In the event of the death of the Buyer, the land leasehold shall be assumed by the heirs or any person stipulated in the land lease agreement.
  • The land leasehold can be transferred to a third party. The new owner shall remain bound to the conditions and provisions stipulated in the initial lease agreement.

2) Sale and Purchase of Villa Agreement
The Buyer will become the freehold owner of the villa to be built on their leased land plot.
TheSale and Purchase of Villa Agreement contains important details about the construction specifications, payment and construction schedule and delivery date of the villa.
The normal time for construction of a villa is _________ assuming no unforeseen delays.

3) Sale and Purchase of Shares Agreement
Buyers will receive shares in Grove Villas Co., Ltd., so that they will have full control of their land plots and the common areas of the Project. Each Buyer will receive the same proportion of shares per land plot.

4) Management Agreement
Buyers rights to use the Project’s common property will be governed by the terms of the Management Agreement and the Project Rules and Regulations.
The management fee for the common property for the first year is Baht [amount] plus VAT (if any). An initial amount of Baht [amount] plus VAT (if any) shall also be payable into a common area sinking fund. These amounts are payable on or before the delivery date of the Villa.

Contract payments
All contract prices are in Thai Baht. All payments should be made to the bank accounts specified in the agreements. Payments may be made in Thai Baht or the equivalent amount in a foreign currency. The Buyer shall be responsible for all bank charges arising from currency exchange and the transfer of funds.