Frequently
Asked Questions
Chom Tawan Ownership Structure
1. How does your legal ownership scheme work for Villas?
All landed property is generally “sold” in two parts – the
first is the actual physical building and the second is the land within which
the building sits. For those who can qualify to own the freehold of land,
through being Thai, buying through a Thai partner or a through a Thai registered
company, we are able to convey the FREEHOLD of the land,
subject to the buyer paying the applicable land transfer fees to the relevant
government departments.
Since foreigners cannot generally own the freehold of Land, international
law firms have devised a secure scheme that protects the long term interests
of our purchasers and at the same time makes it easy to transfer (sell) their
properties in the future. Our scheme (and price) includes both the land and
the building. It is based on a combination of secure individual registered
LEASEHOLD (protected by a body of Thai law) for the land
and outright ownership of the building. Together these ensure ownership rights.
The lease is for 30 years (the maximum length allowed for a lease) and can
be renewed for successive 30 year periods. The first 60 years ( 30 plus a
30 year renewal) is well established and secure in Thai law, and theoretically
it can be extended further – that’s why some developers offer
90 years or even 120 years. This is the typical lease scheme on the island.
However, beyond the first 60 years it does depend of having an agreement with
the Lessor and the Lessor remaining “friendly” to both be willing
to extend or grant a new lease and not to charge rent for it again.
Therefore, for the further protection of our clients, at the end of the project
the developer will transfer the shares of current shareholders of the land
owning companies to the buyers. 100% of the shares are transferred, bearing
in mind that under Thai law, the maximum percentage registered to non-Thai’s
is 49%. The 51% that must be in Thai names can be contained and the voting
rights reduced such that the shares held by the property owners provide them
with effective control of the Lessor. The purpose of this is that by giving
the buyers control of the shares, the owners can control the Lessor and thereby
guarantee for ever the renewal of leases. The effect is to create a perpetual
interest and rights in the land. Obviously the developer must have finished
all leases and construction on the land before it can be transferred.
When you sell your property, the shares are transferred at the same time to
the new owner, the new owners name is registered on the lease agreement, on
the shares and he enjoys the same security as the original purchaser. With
the effective control of the Lessor, each buyer on payment of re-registration
fees, duties and taxes can sell his property with a new lease. This is a secure,
fully transparent and straightforward scheme for both your lawyer to check,
and as importantly for your buyer’s lawyer to check when you come to
re-sell in the future.
2. How does your legal ownership scheme work for Apartments?
Chom Tawan apartments will be registered under the Thailand CONDOMINIUM
Law , which enables each apartment unit to be given an independent
freehold title deed and for this to be registered to the name of the buyer.
Under the Condominium Status, an established body of rules and regulations
relating to the management of the apartment block exist for the protection
of buyers. Generally Condominium status is the best ownership scheme for apartments
although it imposes a number of regulations, the most important of which is
that up to 49% of the apartment units can be registered and owned directly
by non-Thai’s ( the 51% have to registered to Thai’s or a Thai
registered company). Foreigners may still purchase condominium units but they
will have to buy through a Thai company or acquire the unit on a long term
lease. Additional government taxes are involved for Condominium. These are
payable directly by the buyer to the relevant Thai land office and government
department. CONDOMINIUM titles are always in great demand so early purchases
are advised.
3. How is my Purchase secured during the building phase?
Your purchase is secured in five ways:
In signing the agreements both you, as the purchaser, and us as the developer,
make legally binding commitments to each other that can be enforced through
the Thai courts or any other nominated legal jurisdiction.
Soon after the Construction Agreement is signed, we transfer the Construction
Permit into your name, naming you as the owner of the building when it is
completed and all paid for. The major portions of the Price are paid in installments
tied to achieving construction milestones – if at any stage the developer
stopped building, you would own the construction up the level of completeness
and be able to continue to build it through to completion yourself.
On signing the Lease Agreement, even though it is not registered until the
completion of the building, you have a legally binding lease of the maximum
duration for non-registered leases– 3 years which is yours on full payment
of the land lease amount included in the price. This allows you to complete
the construction of your property within a 3 year period before having to
register the lease. If buying the freehold of the land, then the Land sales
and Purchase Agreement will contain restrictions and Covenants relating to
the period before full payments are made and the land title transferred.
On signing the Supplemental Agreement, the Lessor and the Construction Contractor
( that’s the developer) give there binding agreement to effect the transfer
of the shares of the land owing company to the owners, within a given timescale.
The greatest security comes from buying into a successful project that is
clearly well funded.
4. What Management Services are provided and how are they supervised?
An Owners Association has been established to manage the Common Areas of Chom
Tawan. All Property owners participate through holding a variable number of
voting rights according to the size of their property and by the payment of
monthly Common Area Management (CAM) fees ( as well as an initial sinking
fee )
The developer has appointed CB Richard Ellis as the Estate Manager, with delegated
authority to be the service provider for an initial 2 year period. Thereafter,
the Owners Association vote to retain or change them or vote for changes in
their service. CB Richard Ellis is a well-established and highly regarded
provider of estate management services and will provide the level of professional
maintenance required to maintain the prestigious nature of the development.
The Estate Manager provides:
Additionally, the Estate
Manager provides an optional Villa Management Service (for when the properties
are un-occupied) and a full Villa Rental Service to help you let out and manage
your property to either short or long-term rental clients.
5. Do I need a Lawyer?
Strictly speaking, no. Our contracts are standard agreements and have been
reviewed by 10 client law firms representing many clients. However, most buyers
seek a level of independent comfort and retain a lawyer to review the contracts,
explain how property law works for non-Thai’s in Thailand and to perform
an independent due diligence on the land title. In practice, you will need
to use a lawyer or law firm experienced in advising non-Thai’s on buying
property. We can provide a list of law firms used by our existing clients.
6. What contracts do we have to sign?
Villa Buyers:
After the reservation form and on moving to exchange of contracts, the contracts
to be signed are:
Land Sales & Purchase Agreement (for freehold)
Villa Construction Agreement
OR
Land Lease Agreement & Land Company Share Transfer Agreement (for leasehold)
Villa Construction Agreement
Apartment Buyers
After the reservation form and on moving to exchange of contracts, there is
a single, combined contract to sign, namely.
Purchase & sales Agreement for a Condominium Unit
All Buyers
Other Agreements at a later date ( all property buyers):
Power of Attorney. To ensure that the building is registered as being owned
by you, we need to apply on your behalf for a construction licence. The process
is a straight forward one where the developer transfers the license from its
name to that of the buyer.
Estate Management Agreement. Close to the time when the first properties are
handed over, all residents will be required to sign this agreement which governs
the rules for the estate (no washing on poles, no painting the house pink
with yellow stripes etc) and defines the services and the prices to be provided.
CB Richard Ellis are our appointed estate management vendor.
7. How can I be sure about the land title?
The Chom Tawan land is Chanott titled land, with its own title deed granted
in 1999. The land title and its history have been confirmed through due diligence
carried out by our own lawyers, and those of our buyers.
As a Chanott title, it is properly surveyed and registered with coordinates
and the right to construct. The title deed bears the name of the current owner
and is in the process of being acquired by the developer. On transfer, the
land is being subdivided into three parcels each with their own Chanott land
titles. These are Chom Tawan Apartments Ltd (for the apartments), Chom Tawan
West Ltd ( for villas) and Chom Tawan East Ltd ( for villas). The land will
be then further subdivided into individual villa and apartment plots.
In addition, the land is situated in a zone which permit residential development.
The masterplan, property types, design development, structural and civil engineering
and landscaping and permissions have all been developed within the Thai regulations,
based on continuous consolation with Thai regulator and guidance from the
architectural consultants employed by the developer.
8. How can I be sure about the strip in front of the beach?
The strip of land situated between the access road to Chom Tawan and the beach
is of interest to prospective purchasers and understandably we are asked for
an explanation on its legal status.
The ‘strip’ of land parallel to the beach is
public land. There is no registered owner of the land at the Land Registry
and also no title which would allow a lawful owner to erect any kind of building
or operate any kind of business.
Under City Plan Zoning it is classified as a ‘Light Green Zone’
for environmental and recreational purposes only – no commercial or
residential usage allowed.
Details and confirmation of the status of this land can be checked against
the Cherng Talay and Kamala City Plan No. 436 (BE 2542) which can be inspected
at the office of the local OrBorTor Cherng Talay.
Also of interest are current plans by the Local Authority to substantially
enhance the public amenity of this area and improve public access to the beach
by way of a number of access paths connecting the road to the beach.
9. Who is the developer and what is its experience?
Napawan Asia is in the business of developing prestigious residential and
resort communities, situated in the very best Phuket locations and featuring
designs, quality and lifestyle features that appeal to the property and investment
needs of the demanding international property buyer.
Renowned for creative designs, delivering exceptional quality and providing
true value for money, Napawan Asia has an absolute commitment to professionalism,
integrity and transparency in all its dealings with clients, suppliers and
contractors. More than just words, the application of these principals form
the cornerstone of the company’s ability to deliver international quality
within a local Thai context.
Napawan Asia’s founding members are the power behind Napawan, the developer
for the highly acclaimed Maan Tawan development adjacent to Chom Tawan. Consisting
of 29 luxurious villas and apartments, Maan Tawan is widely regarded as one
of the most recent premier developments in Phuket, with top marks for designs,
quality, lifestyle and investment return.
Wider afield the founders have individual experience of designing and implementing
multi-million US dollar luxury residential and commercial development projects,
working to the highest international standards and accepted best practices.
Experience spans Australasia, including Phuket, the US, Middle East and Europe.
Creativity and the development of quality-lifestyle homes is the specialty,
enhanced by years of practical experience at the top of their industry with
a true understanding of client needs.
Our successful approach is based on maintaining an exceptionally strong in-house
team, supplemented on a per-project basis by appropriate specialist consulting
firms with experience relevant to a particular development project. We use
only consulting firms that can demonstrate sufficient track-record of achievement
and whose prior work passes both our own high standards and those of our buyers.
Meet the Napawan Asia In-house Team
Andy Street heads the developer’s team, having performed a similar role
for Maan Tawan in conjunction with his partner Tony Henthorne. Andy is responsible
for the overall commercial, operational, financial and marketing control and
direction of the company from initial concept designs through to project completion.
Andy has extensive business experience with the international communities
in Asia and a special aptitude for assembling and driving teams of specialists
to achieve spectacular results. Tony has a close involvement with sales and
marketing.
Andrew Morrison heads the master planning, design and design development process,
having previously completed many similar roles developments in Asian countries
such as Hong Kong, China and Indonesia as well as other locations in Thailand.
Further afield he has completed luxury residential developments for prominent
clients across the world. He has an ongoing responsibility throughout the
project to supervise, provide solutions and assist the implementation team
on issues or new requirements as they arise. His most recent testament in
Phuket is Maan Tawan.
The growing in-house team consists of a highly experienced specialists covering
architecture, specialist engineering, M+E and computer aided draftsmen. Headed
by our own project director they work with the documentation provided by the
Consultant team to implement, oversee and provide guidance through the actual
construction process, working closely with the contractor and clients to implement
client variations.
Working closely with Napawan Asia is the international sales and marketing
company Tawan Lead by Ian Spurdle and Tony Henthorne, both with extensive
experience in working with the international communities in Asia and Europe,
Ian and Tony have exceptional knowledge of buyers requirements, the properties
being marketed and practical knowledge of living in Phuket.
Meet the Napawan Asia Consultant Team
Architecture
Civil & Structural Engineering
With the master planning and design executed in-house, the design development
and documentation has been developed in conjunction with Sindhu Group,
an established Bangkok-based multidisciplinary architectural practice with
extensive experience in luxury developments, 5 star hotels and public area
projects. Working to international standards and with specific responsibility
for the overall architecture documentation, structural and civil engineering,
and co-ordination of M+E engineering, interior architecture design and landscape
architecture, their involvement ensures that our designs are fully worked
out and that they comply with the required Thai building, planning and zoning
regulations. Sindhu Group’s previous experience includes the Regent
Hotel in Bangkok, Royal Arcadia and Metropol Hotels in Phuket, Royal Chiangmai
golf club, the InterCon in Phnom Penh, the Palace Hotel in Beijing and the
Hotel Nikko in Hong Kong. In addition it has designed and performed architectural
services work to the newly opened Bangkok underground mass transit project,
Bank of America and new luxury developments in Samui.
Interior Architecture
Interior architecture is a critical part in the definition of a luxury property
and we are working with Chaba A Design Co, an established
firm of interior specialists based in Bangkok. Their work is concerned with
refining the architectural character of the inside spaces, encompassing selection
of materials, lighting design, ceiling designs, floor pattern designs and
fitted furniture. Chaba A have experience of high profile work and clients
including the recent renovation of Thai Airways First and Executive lounges
in Bangkok, the Sun resort in Krabi and Vijitha Thani villas in Bang-Na.
Landscape Architecture
Recognising that landscaping is an integral part of designing a quality luxury
residence, Napawan Asia has included international experts as a separate discipline.
Archscape are an established Bangkok firm who have carried out such developments as PP Island Village Swimming Pool and Villa Zone which is the prestigious five star hotel development in Phi Phi Island, and Many High-end Residential Development such as Golden Nakara and Baan Rajpreuk Sukhumvit in Bangkok.
The design director responsible for Chom Tawan has fifteen years of specific and relevant experience, gained across projects with high profile clients in the USA, Hong Kong, Singapore and Thailand.
In Hong Kong where she had stayed for four year, she personally lead works with many up-scale residential and commercial developments, including Discovery Bay North Development, Tung Chung Station Package II development, Award Winning Cheung Kong Center Public Park, The Centrium @ Wyndham St./ Arbuthnot Rd., Disney Deluxe hotels in HK, plus many luxurious private residences especially the Private Pool and Garden @ 70th Floor Cheung Kong building for Li Ka Shing, Chairman and Owner of Hutchison Group.
In Thailand her work includes hotel and resort developments
in Krabi and Sumui. Other notable work includes the Banyan Tree Resort Phuket,
Mumbai Renaissance Resort at Powai Lake, Mumbai, India and Huang Gang Hang
Long Building, in Shenzhen and The Forum, Beijing, both in China.
Mechanical and Electrical (M+E)
Working under the overall co-ordination of Sindhu, we have appointed EEC
Group, an established large engineering based consulting firm from
Bangkok for all M+E work. Providing international level consultant engineering
services combined with an extensive knowledge of local practices, codes, regulations
and practices, EEC’s clients are the leading companies across many business
sectors including residential condominiums, resorts, hospitals, factories
and commercial complexes. Their previous work includes luxury resorts such
as the Alamanda and Holiday Inn in Phuket, Ao Nang and Peach Laguna in Krabi,
condominiums such as The Height in Bangkok and a number of commercial projects
including the Union Mall and the Future park Plaza Rangsit in Bangkok.
Lawyers
Finding a dream property is half the battle, ensuring that the purchase is
secure and transferable should be equally important. Our team has taken advice
from leading international law firms and Thai property law specialists to
create an enduring, secure and safe scheme for purchasing and selling our
properties. Intel Law have prepared our standard contracts
and are our ongoing advisors on legal matters. With significant experience
in working with both developers and clients, Intel Law provide Napawan with
sound, practical and up to the minute legal advice.
The Full Team at a Glance
PROJECT
& CONSTRUCTION MANAGEMENT: |
Napawan
Asia in-house Team, Phuket |
|
DESIGN
& MASTER PLANNING: |
Napawan
In-House Team , Phuket and Hong Kong |
|
CONSULTANTS |
||
ARCHITECTS: |
SPC
Consulting Engineers Bangkok (Sindhu Group Ltd) |
|
CIVIL
ENGINEERING: |
SMC
Civil Engineers (specialist division of Sindhu) |
|
STRUCTURAL
ENGINEERING: |
SPC
Structural Engineers (specialist division of Sindhu) |
|
MECHANICAL
& ELECTRICAL ENGINEERING |
EEC
Group Ltd., Bangkok |
|
LANDSCAPE
ARCHITECTS: |
Archscape
Co., Bangkok |
|
INTERIOR
ARCHITECTS: |
Chaba.A
Design Co., Ltd, Bangkok |
|
LAWYERS: |
Intellaw
Attorneys Ltd, Bangkok |