Page 83 - Introduction to Investment Laws in Thailand

use of the lands. The government will thus be able to pave their project
implementation on rails, roads, water supply, and electricity.
In addition, the business model of the land trust can be enhanced by
that bank or financial institution that can transform themselves into a
trustee of the land trust. By being the trustee, banks can manage the
relationship with landowners and land developers. In other words, the
bank becomes the buffer for landowners and governments. Banks having
clear knowledge about the land trust can also provide loans to land
developers, either via government or private companies. An example is
that one road construction project may incur the combination of many
land trusts. As the trustee who controls the land trust, the bank can then
consider giving the loan to the government in pursuing its infrastructure
development plans. The model of a bank as the trustee can help separate
the management and the use of the trust assets. Banks can change their
roles of the financier in infrastructure projects toward a land trust
manager. The model can thus benefit landowners and infrastructure
developers.

Considering foreigners who would like to stay at a house in Thailand,
but do not prefer to sign a rental agreement, can resort to the establishment
of trust over property according to the Right Over Property Act. The
foreigners are then able to have the right over the property and use the
property as collateral with a bank and financial institution in Thailand. It
is also considered that the trust established according to the right over
property registered seems to benefit foreigners. It is because rather than
signing a rental contract that the foreigner cannot use for mortgage with
banks, foreigners can utilise the trust established under the Right Over
Property Act with a mortgage with banks.

3.5 Land law for the Special Eastern Economic Corridor Policy
From the above part of the chapter, the rules and regulations regarding
property for foreigners are very complex. The rules and regulations are
with the principle of protectionism to ensure that the land right controls
and are owns mostly by a Thai national or juristic person. However, the

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