Jump to content

property purchase contract between local buyer and foreinger


Recommended Posts

I am in process of buying land with a local man in myanmar. As in thailand noone other then a local is allowed to own land.i know about the risks having lived in asia for many years now.i am trying get my hands on a blank contract of the agreement between the local buyer and the foreigner.i urgently nèed this paper as i have found a little paradise near dawei on the peninsula...can anyone help...basically i want to protect my asset and address the issue of say death of my friend...

Link to post
Share on other sites

Background:

The said parties (via a foreign entity possibly Thai or Singapore Company) would like to control an identified (8 acre) parcel of land in Tanintharyi Region

We have 2 local friends who live in Dawei.

We have already a written promise signed by the seller and 500.000 kyat to hold the agreed buying price until March 3.

We have agreed with the owner of the land to pay a 20% deposit of the total agreed price of 160 mio Kyat. With the remainder to be paid within 6 months.

We have spoken to a local lawyer here today for the contract between the seller and the buyer. Currently we believe our Dawei friends need to be the buyer.

Question 1: Can our Dawei friends be in a Joint Venture local company partly owned by a foreign entity?

Monday 22nd February we will travel with the local lawyer to the landowner to verify land size, ownership.

We are looking to understand how us, as foreigners or via a foreign entity can control the land and our intentions for this land.

How much of this needs to be setup before the 20% deposit is paid.

Our intention is to establish a small simple resort with some bungalows (huts).

We want to be in control of the ownership papers and decision making of the development of the land.

One of our Dawei friends would manage the land and officially run the place.

One of us (+Thai wife) would like to work/ co-manage (requires a long-term Myanmar work visa?)

Please advise how we best protect our asset and financial interests.

Some of our thoughts include:

How would our land ownership be affected in case of sudden death/ mental incapacity of our Dawei partners. What if they leave their assets to their family.

We believe holding the legal paperwork of the tax receipt would address this most critical issue. Is that correct?

In Thailand contracts like this happen by the local friend/buyer signing over the land to the foreigner on the day of deposit/settlement. We believe this is also not secure as the local can make this claim to the local Government and make that contract voide.

Please advise on your availab

Sent from my Samsung device

Link to post
Share on other sites

Background:

The said parties (via a foreign entity possibly Thai or Singapore Company) would like to control an identified (8 acre) parcel of land in Tanintharyi Region

We have 2 local friends who live in Dawei.

We have already a written promise signed by the seller and 500.000 kyat to hold the agreed buying price until March 3.

We have agreed with the owner of the land to pay a 20% deposit of the total agreed price of 160 mio Kyat. With the remainder to be paid within 6 months.

We have spoken to a local lawyer here today for the contract between the seller and the buyer. Currently we believe our Dawei friends need to be the buyer.

Question 1: Can our Dawei friends be in a Joint Venture local company partly owned by a foreign entity?

Monday 22nd February we will travel with the local lawyer to the landowner to verify land size, ownership.

We are looking to understand how us, as foreigners or via a foreign entity can control the land and our intentions for this land.

How much of this needs to be setup before the 20% deposit is paid.

Our intention is to establish a small simple resort with some bungalows (huts).

We want to be in control of the ownership papers and decision making of the development of the land.

One of our Dawei friends would manage the land and officially run the place.

One of us (+Thai wife) would like to work/ co-manage (requires a long-term Myanmar work visa?)

Please advise how we best protect our asset and financial interests.

Some of our thoughts include:

How would our land ownership be affected in case of sudden death/ mental incapacity of our Dawei partners. What if they leave their assets to their family.

We believe holding the legal paperwork of the tax receipt would address this most critical issue. Is that correct?

In Thailand contracts like this happen by the local friend/buyer signing over the land to the foreigner on the day of deposit/settlement. We believe this is also not secure as the local can make this claim to the local Government and make that contract voide.

Please advise on your availab

Sent from my Samsung device

Link to post
Share on other sites

Background:

The said parties (via a foreign entity possibly Thai or Singapore Company) would like to control an identified (8 acre) parcel of land in Tanintharyi Region

We have 2 local friends who live in Dawei.

We have already a written promise signed by the seller and 500.000 kyat to hold the agreed buying price until March 3.

We have agreed with the owner of the land to pay a 20% deposit of the total agreed price of 160 mio Kyat. With the remainder to be paid within 6 months.

We have spoken to a local lawyer here today for the contract between the seller and the buyer. Currently we believe our Dawei friends need to be the buyer.

Question 1: Can our Dawei friends be in a Joint Venture local company partly owned by a foreign entity?

Monday 22nd February we will travel with the local lawyer to the landowner to verify land size, ownership.

We are looking to understand how us, as foreigners or via a foreign entity can control the land and our intentions for this land.

How much of this needs to be setup before the 20% deposit is paid.

Our intention is to establish a small simple resort with some bungalows (huts).

We want to be in control of the ownership papers and decision making of the development of the land.

One of our Dawei friends would manage the land and officially run the place.

One of us (+Thai wife) would like to work/ co-manage (requires a long-term Myanmar work visa?)

Please advise how we best protect our asset and financial interests.

Some of our thoughts include:

How would our land ownership be affected in case of sudden death/ mental incapacity of our Dawei partners. What if they leave their assets to their family.

We believe holding the legal paperwork of the tax receipt would address this most critical issue. Is that correct?

In Thailand contracts like this happen by the local friend/buyer signing over the land to the foreigner on the day of deposit/settlement. We believe this is also not secure as the local can make this claim to the local Government and make that contract voide.

Please advise on your availab

Sent from my Samsung device

Link to post
Share on other sites

I think it is great if you can get this to work for you. I would change Thailand for Myanmar in a heart beat if I could purchase land there.

I was there a couple months ago and the oportunities are everywhere.

Per what I read they allow a foreigner to own 100% of a business in his name and that includes tourism.

I read a lot about owing land issue in myanmar and that is what is keeping foreigners out so far.

Just google search "doing business in myanmar" and a few agencies come up offering their services.

I know they just passed the condo law for foreigners but they are too expensive and there are not many built yet.

So far the only big advantage I see is being able to own 100% of a business.

I also wanted to build a small resort near Bagan but could not get around the land issue.

I would start with your embassy myanmar as they run their own market research in the country and then consult with a few of those agencies I see advertinsing on the internet by doing a google search.

I read on the internet they had a lot of land title issues near yangon and that put off many investors (same land sold manytimes to different people)

Link to post
Share on other sites

Hi, I work in Myanmar (but spend most of my time in Thailand, because of the connectivity).

A lot of this depends on what passport you hold. Usually, a JV is made with a local partner and a Singapore entity (because of the treaty Myanmar has with Singapore). You can name one of your Dawei friends as the local partner, but you really need to trust them. If not, please let me know; I can find you a reputable local partner (one you can vet through the US embassy).

The local partner CANNOT sign over the land to you. Foreigners are not allowed to own land in Myanmar--period. The thinking is this: if foreigners could own land, what would stop China from buying up all the land and opening up the entire western half of China to ocean access? This is why foreigners likely will never be able to own land in Myanmar.

The issue I think you have (really) is that your Dawei friends have no skin in the game. You put up the money. You build the resort. You take the risk. All they do is lend their name to you. If you have an argument, they can sell the land and you'll end up paying rent to someone for land you've bought. This is why you need a local partner who has more money than you.

I'm building a large factory outside of Yangon, near the Caterpillar dealer. This is the way I structured things, and should serve as a pretty good guide for you:

Me: own 20% of JV, through Singaporean holding company

Local partner (land owner): 20% of JV

European manufacturer: 40%

Singaporean partner (management): 20%

The local partner doesn't put in any cash; their contribution is the land. The Singaporean partner already has a manufacturing license from the EU manufacturer and has about 10 years of management experience making the product. We have all contributed cash to the project (with the exception of the local partner, who contributed land). What's important here--why I spelled it all out for you--is that everyone has skin in the game, everyone risks something; that's what makes the deal good for everyone. For instance, if the local partner decides to start charging us rent for having our factory and warehouse on his land, we can just leave, and there will be a highly-specialized building on his land that no one else can use. The local partner needs the specialized management. The manufacturer needs the local partner. And everyone needs me, because I get all the permits and governmental backing. Everyone in your venture needs to need each other too, or catastrophe is inevitable.

Hope this helps. Good luck to you.

Background:
The said parties (via a foreign entity possibly Thai or Singapore Company) would like to control an identified (8 acre) parcel of land in Tanintharyi Region

We have 2 local friends who live in Dawei.
We have already a written promise signed by the seller and 500.000 kyat to hold the agreed buying price until March 3.
We have agreed with the owner of the land to pay a 20% deposit of the total agreed price of 160 mio Kyat. With the remainder to be paid within 6 months.
We have spoken to a local lawyer here today for the contract between the seller and the buyer. Currently we believe our Dawei friends need to be the buyer.
Question 1: Can our Dawei friends be in a Joint Venture local company partly owned by a foreign entity?
Monday 22nd February we will travel with the local lawyer to the landowner to verify land size, ownership.

We are looking to understand how us, as foreigners or via a foreign entity can control the land and our intentions for this land.
How much of this needs to be setup before the 20% deposit is paid.
Our intention is to establish a small simple resort with some bungalows (huts).
We want to be in control of the ownership papers and decision making of the development of the land.
One of our Dawei friends would manage the land and officially run the place.
One of us (+Thai wife) would like to work/ co-manage (requires a long-term Myanmar work visa?)
Please advise how we best protect our asset and financial interests.
Some of our thoughts include:
How would our land ownership be affected in case of sudden death/ mental incapacity of our Dawei partners. What if they leave their assets to their family.
We believe holding the legal paperwork of the tax receipt would address this most critical issue. Is that correct?
In Thailand contracts like this happen by the local friend/buyer signing over the land to the foreigner on the day of deposit/settlement. We believe this is also not secure as the local can make this claim to the local Government and make that contract voide.
Please advise on your availab





Sent from my Samsung device

Link to post
Share on other sites

I admire your enterprise, and wish you luck, but this is going to end in tears.

In spite of contracts between parties, there is no security.

Your best security is to hold a mortgage over the property for twice what it's worth/cost, but even that's not much help if you're seen to be circumventing the laws of Myanmar.

Link to post
Share on other sites

Choo Dee to you all who think Myanmar is better than Thailand.. Trading Thailand in a heartbeat for Myanmar so why the f!!!!!k would you even live here.. A friend did the same went to Myanmar had contracts drawn up.. Bought land built a home and so on.. 3 years later he's back in Thailand regretting ever moving.. And also has lost the lot.....

Link to post
Share on other sites

No risk, no gain. Continue your due diligence, and pay no mind to the barstool anchors who have likely never risked a thing, and never succeeded at anything but taking up space.

Post #8 has apparently done his homework, and I agree that all partners should have some risk for this to be successful.

In your favor, Myanmar is NOT Thailand, where chicanery has been the primary strategy for life and independence since the arrival of WESTERN powers. No legal framework/tradition to fall back on, and a propensity for playing countries against each other for security...

Not saying that Myanmar is a safe haven, but I wouldn't use Thailand as a point of reference. Just do your homework, and return the help you receive from others, and you'll be the richer for it.

Good luck.

Link to post
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...