Nominee checks in Thailand: a script for the property safety objection
What to say when a client asks whether it is still safe to buy property in Thailand after news about DBD checks on nominee companies. Four steps, a ready script and the legal ownership formats.
When this objection comes up
The client has read the news, or a friend has forwarded a post about inspections of nominee companies. The question sounds like this: "Is it still safe to buy in Thailand, or can they take the property away?" Behind it is a fair worry about money, not a lack of interest.
A rushed answer such as "everything is fine" loses trust. A long legal lecture loses attention. The script below takes about two minutes and keeps the conversation on facts.
Step 1. Acknowledge the concern
Start by agreeing that the worry makes sense. People do not listen to arguments while they feel dismissed.
"I understand why you are asking. There has been a lot of noise about checks by the Department of Business Development, DBD. Let me show you how this looks from the point of view of a professional investor, because the picture is quite different."
Step 2. Change the angle
Explain what the checks are for. Thailand is not rewriting the rules for foreign buyers and is not seizing lawfully held property. The authorities are going after old grey schemes: companies where Thai nominees hold 51% of the shares on paper so that a foreigner can control land the law does not allow them to own.
Add the bigger picture. Thailand is assessed against the international anti money laundering standards of FATF through the Asia/Pacific Group. Cleaning up nominee structures is part of that work. For the market this is good news: transparent rules attract institutional money and support the value of liquid, properly documented assets.
"The authorities are not changing the law for foreigners. They are cleaning the market of the shell companies that were set up to get around it. For buyers who use the legal routes, this makes the market safer, not riskier."
Step 3. Name the legal ownership formats
Then move from the news to the client's own purchase. There are two lawful formats, and both are registered with the state.
Foreign freehold for a condominium
A foreigner can own a condominium unit outright, registered in their own name at the Land Department. The condition is the foreign quota: foreigners together may own up to 49% of the saleable area of a building. The money must arrive from abroad, and the bank confirms this with a foreign exchange transaction document.
Registered leasehold and superficies
A villa or land is usually held through a long lease registered at the Land Department, for up to 30 years per registration. A superficies is a separate registered right to own the building on someone else's land. Both appear in the official land register. Renewal options in a contract are promises between the parties and are not the same as a registered term, so the lawyer reads them carefully.
Step 4. IBG Property's position
Finish with what you can stand behind.
"IBG Property does not work with grey schemes. Every property goes through a legal review, and deals are closed only within the law. You are buying an asset protected by the laws of the Kingdom, with no hidden structure behind it."
Ready-to-use script
| Step | What you say | What it does |
|---|---|---|
| Acknowledge | "I understand the concern, there is a lot of noise about DBD checks." | The client feels heard |
| Change the angle | "The checks target nominee companies, not lawful foreign owners." | Separates the news from their deal |
| Name the formats | "Freehold for a condo within the 49% quota, or a registered lease or superficies for a villa." | Gives concrete, checkable facts |
| IBG position | "We work only in the legal field, every property is reviewed." | Closes with responsibility |
What not to say to the client
Do not promise that nothing can ever change. Do not call a nominee company "standard practice" or suggest that "everyone does it". Do not give legal advice on a specific structure yourself. If the client already owns through a Thai company, pass the question to an independent lawyer and say so openly.
Questions partners ask
Will DBD checks affect a foreign condominium owner?
A unit bought freehold within the foreign quota and registered in the buyer's own name is not a nominee arrangement. The checks are aimed at companies where Thai shareholders act on behalf of a foreigner.
What if the client already owns through a Thai company?
Do not reassure or frighten them. Recommend an independent lawyer who can review the shareholders, the source of their investment and the company's real activity. IBG Property can help find a specialist.
Is a 30-year lease really safe?
The registered term is recorded by the state and binds future owners of the land. Extra periods promised in the contract depend on its wording and on the counterparty, so they are reviewed separately before signing.
Sources and limits
FATF: Thailand country page. Department of Business Development, Thailand. This is a negotiation script prepared by IBG Property for partners. It is not legal advice and does not replace a review of a specific property by a lawyer.
Educational material. Examples are illustrative; legal, technical, tax and investment decisions need case-specific professional advice.
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