Updated: 22-Jul-11

Legal

Q. What types of ownership are available?
A. The various types of ownership available depend upon the type of property purchased and are set out in more detail below:

• Laguna Village Townhomes and Laguna Village Residences These 2 types of property are available on a leasehold basis. According to Thai Law, foreigners may have an ownership of buildings developed upon the land leased by them, but not the land itself. Therefore, we offer a 120–year lease of land for our customers, being 4 terms of consecutive 30–year leases (each 30-year lease term is allowed for registration at land department under current Thai Law).
  
  
• Laguna Village Villas
  This development project is under the Condominium Act of 1979 whereby condominiums can be acquired on both a leasehold and freehold basis. However, the number of freeholds held by foreigners in a condominium is limited to 49% of the total area of the units, excluding the area of the registered common property. Upon the completed construction, an application will be made to register the development under the terms of the Condominium Act.
  
  
• Lofts at Laguna Village
  The Lofts at Laguna Village is a development project consisting of leasehold apartments offering the same lease as described above in the Laguna Village Townhomes and Laguna Village Residences reference.
  
  
• Banyan Tree Villas
  As these villas are an integral part of the exclusive Banyan Tree Phuket Resort, land is offered on a leasehold basis only. However, the buildings are sold as freehold.
  
  
• Dusit Thani Pool Villas
  As these villas are an integral part of the exclusive Dusit Thani Laguna Phuket, land is offered on a
  leasehold basis only. However, the buildings are sold as freehold.

Q. What are the costs associated with the lease / freehold registration?
A. These are outlined below:

• Leasehold title
  Lease registration fees and stamp duty (currently 1.1% of the land rental or lease premium) is payable to the Land Department upon registration of the lease.
  
  
• Freehold title
  Freehold registration fee (2% of the appraisal price of property) is payable to the Land Department upon transfer and registration of title of the property. The appraisal price is calculated relative to the government's tax assessment value which is generally well below market value. Other applicable taxes upon transfer and registration of freehold title are:
  
  • Corporate Income Tax (currently 1.0% of the selling price or appraisal price, whichever is higher)
  • Special Business Tax (currently 3.3% of the selling price or appraisal price, whichever is higher)

  The burden between the seller and the purchaser for the above costs will be specified in the Lease and/or Sale & Purchase Agreements.
  The burden between the seller and the purchaser for the above costs will be specified in the Lease and/or Sale & Purchase Agreements.

Q. Is leasehold land transferable?
A. Leasehold land may be transferred subject to the terms and conditions of the agreements. Generally, an assignment fee is payable. In addition, the assignee must agree to be bound by the terms and conditions contained in the original lease agreement.

Q. Can leasehold be upgraded to freehold title?
A. This depends upon particular circumstances and is set out in more detail below:

• Laguna Village Townhomes and Laguna Village Residences Upgrading from leasehold to freehold title will be available should the law change allowing us to have separate title deed for each plot, and it will be considered on a case by case basis, provided that the lessee is eligible under relevant Thai laws and regulations to take transfer of and own the land
  (Currently, foreigner is prohibited to acquire the land).
  
  
• Laguna Village Villas
  This may be possible provided that the foreign ownership quota is not exceeded. Where applicable, an option fee may also be payable (generally based upon the lease premium) to upgrade the title.
  
  
• Lofts at Laguna Village
  An apartment may not be upgraded to freehold since the unit is a partial lease of the relevant building. Upgrading to a freehold basis will only be available should the law change to allow the apartment to have separate title deed for each unit or if a condo license is later obtained.
  
  
• Banyan Tree Villas
  As these villas are an integral part of the exclusive Banyan Tree Phuket Resort, the option to purchase the land on a freehold basis is not available.
  
  
• Dusit Thani Pool Villas
  As these villas are an integral part of the exclusive Dusit Thani Laguna Phuket, the option to purchase the land on a freehold basis is not available.

Q. Is leasehold land ownership secure?
A. Our land titles are free from mortgage and any encumbrances and this is the preferred method of ownership for foreign buyers. Once the lease is registered at the Land Department, the right of use to the land will be vested with the lessee.

Q. Should I appoint a lawyer to review the agreements?
A. Our agreements have been used for a number of years and have been reviewed by major international law firms. We have our own in-house legal team which will assist to clarify any questions you may have concerning the agreements. However, should you wish to obtain specific advice regarding the structuring of your investment, we recommend you consult with a professional legal and/or financial
adviser.

Q. What is the measurement of square wah?
A. Our agreements indicate the property's areas with land measurement under the Thai system set by the Land Department. The most commonly used land measurements are as follows:

• One rai equals 1,600 square meters
• One ngan equals 400 square metres
• One square wah equals 4 square metres

Q. When will be the lease / house transfer registration take place?
A. Approximately 90 days after full payments of the Rental and Purchase Price of the land and buildings have been made, we will notify the lessee / buyer of any required documents and fees which will be incurred upon registration. In case of the condominium developments, the property will be transferred once the title deeds have been registered and issued by the Land Department.

Construction

Q. How long does construction take?
A. All construction works are subject to receiving the appropriate Government approvals. Generally, it will take approximately 18 months to complete the building and landscaping from the date of commencement of construction. In the case of Lofts at Laguna Village, the construction will take longer time due to buildings height, facilities and infrastructure required.

Q. What is the warranty period offered?
A. This depends upon the particular product offered and is set out in more detail below:

• Laguna Village Townhomes, Laguna Village Residences, Laguna Village Villas and Lofts at Laguna Village
  For all new construction projects we offer a five year warranty on the main structural parts of the
  building, piles, footing, slab, roof structure and load bearing walls which are in accordance with
  Government regulations. A one year warranty is offered on component parts or accessories which are
  major parts of the building.
  
  
• Banyan Tree Villas
  A one year warranty is offered on the building.
  
  
• Dusit Thani Pool Villas
  A one year warranty is offered on the building.

Q. Is customization of the building allowed?
A. All of our residential properties have been professionally designed by leading architects and engineers and construction must be in accordance with building permits issued by the Government authorities. However, we will consider minor modifications which do not breach the construction permit and do not impact the building structure such as internal partitions, built-in furniture, wall and floor tiles, and do not affect the overall aesthetics of a development.

Rental Options

Q. Is there a rental programme available and what are the potential returns?
A. Yes, various rental programs are available. The terms and conditions of rental programs and the returns may differ depending upon the type of property. However, Laguna Phuket has a proven track record in generating excellent rental returns in addition to the capital appreciation potential that exists from owning a Laguna property within Asia's leading resort. Please contact the Property Sales Centre for further details.

Q. What are the taxes levied on the rental programme that an owner will be subject to?
A. Tax will be levied on the rental, which owners earn under The Rental Scheme Agreement. Rental earned by foreign owners who rent out their properties are subject to 15% withholding tax. Rental earned by Thai tax residents are subject to 5% withholding tax. We are not in position to advise customers on taxes. We strongly suggest you consult with an independent legal and/or tax adviser.

Note: Note that those certain applicable tax rates rely upon the relevant Thai tax laws at the date of issue of this FAQ and changes in law or circumstances may occur after the issue date.

Property Management

Q. What types of property management services are offered and what is the approximate cost?
A. In addition to common area property management, optional property management services are available to individual owners. For properties in a rental program, these services (such as housekeeping, pool cleaning, gardening, routine and preventative maintenance, general repairs and pest control) will normally be provided as part of the rental program. However, these services are also available to nonrental program properties. Please contact the Property Sales Centre for further details.

Privileges

Q. What privileges will I receive as an owner of a Laguna Phuket property?
A. As an owner of a property in Laguna Phuket, you may be entitled to a regular membership of Laguna Phuket Golf Club. In addition, owners will receive a Resident's Privilege Card which entitles holders to generous discounts in all hotels within Laguna Phuket and access to resort facilities (terms and conditions apply). One and two bedroom units with the Lofts at Laguna Village project do not include a
Golf membership. Only Penthouse units within the Lofts receive the membership.

Q. Who will be entitled to the Golf Club membership?
A. Our current policy is that if you buy the property in your name: you; your legal spouse and your children (who are not over 21 years of age) will be entitled to the Golf Club membership. However, only one person can be registered for the Golf Club membership. If the owner of the property is a company, a director must nominate which person will receive the membership.

Infrastructure & Common Areas

Q. What infrastructure facilities and services are provided?
A. Being an owner in Asia's leading resort, the destination resort comprising a collection of world-class hotels and luxury villa properties with their restaurants, rejuvenating spas, recreation facilities (including the acclaimed Laguna Phuket Golf Course) and Canal Village shops are all within easy reach via the free inter-resort shuttle bus and ferry services.

The infrastructure facilities and services meet the same high standards of the hotels and include:

• Security – 24-hour security guards stationed at the entrance gates to each project.
• Roads and fences – each gated community contains a private internal road and a perimeter wall.
• Electricity – power is provided by the Provincial Electricity Authority of Thailand.
• Water – each project contains its own supply from either a reservoir and/or deep well.
• Landscaped area – at least 5% of the total project area is provided for common use of the owners.
• Communications – each house is provided with two external telephone lines. Broadband and cable TV connections need to be separately arranged.
• Garbage collection – provided on a daily basis by Laguna Service Company.
• Estate Management – a dedicated estate management office is provided to oversee the 24-hour security, garbage collection, gardening and landscaping, general cleaning and ongoing maintenance of common areas in the project. Our dedicated staff are also happy to assist owners with any reasonable request.

Q. What are the estimated common area charges?
A. Common area charges are the costs the owners pay for ongoing maintenance and upkeep of the common infrastructure and facilities, which are provided for their benefit. These are set out in more detail below:

• Laguna Village Residences and Laguna Village Townhomes
  The common areas are managed on behalf of owners by our dedicated estate management office. The annual charges that apply differ from project to project depending upon the total expenses and the total number of properties within a project among which the expenses will be proportionately divided. Details of the estimated annual fees for a particular project can be provided upon request. In addition, a sinking fund will be established for each project. The purpose of the sinking fund is to accumulate funds for major infrastructure repairs and/or improvements which may be undertaken in the future. Rather than charge a large upfront amount, contributions will be sought on a regular basis so that the fund is built up over time.
  
  
• Laguna Village Villas
  The common area is managed by the Condominium Juristic Person (CJP). The annual charges are based on the total expenses incurred and are divided by the total number of properties on a proportionate basis. Details of the estimated annual fees for a particular project can be provided upon request. In addition, a sinking fund will be established for each project. The purpose of the sinking fund is to accumulate funds for major infrastructure repairs and/or improvements which may be undertaken in the
  future. Rather than charge a large upfront amount, contributions will be sought on a regular basis so that the fund is built up over time.
  
  
• Lofts at Laguna Village
  The common areas are managed on behalf of owners by our dedicated estate management office. The annual charges are based on the total expenses incurred and are divided by the total number of properties on a proportionate basis. Details of the estimated annual fees for a particular project can be provided upon request. In addition, a sinking fund will be established for each project. The purpose of the sinking fund is to accumulate funds for major infrastructure repairs and/or improvements which may be undertaken in the future. Rather than charge a large upfront amount, contributions will be
  sought on a regular basis so that the fund is built up over time.
  
  
• Banyan Tree Villas
  Common area costs are absorbed by the Banyan Tree as part of their normal operating costs.
  
  
• Dusit Thani Pool Villas
  Common area costs are absorbed by the Dusit Thani Laguna Phuket as part of their normal operating costs.

Financing

Q. What are the terms of payment?
A. For all new properties sold, we offer 2 options of payment plans. Payment terms are as follows:

Option 1: 100% Payment Term

Notes:

1. Concrete structure substantially complete*
2. Roof, brickwork and rendering substantially complete**
3. Electrical conduits, pipework and plastering substantially complete***
4. Reservation deposit of USD 8,500 is not apply to Banyan Tree Villas****

Option 2: Deferred Payment Term**

Notes:

1. All amounts are stated in United States Dollar.
2. The above table sets out the estimated payments required under the respective payment plans for selling prices between USD 200,000 – 1,800,000.
3. The estimated payments are indicative only and the developer / seller does not accept any responsibility or liability whatsoever for any inaccuracies or omissions.
4. One year deferred plan is 12 equal monthly installments (3% interest applies).
5. Three year deferred plan is 36 equal monthly installments (5% interest applies).
6. Five year deferred plan is 60 equal monthly installments (7% interest applies).
7. Payment terms are subject to change without notice.

Updated: 22-Jul-11

Whilst every care has been taken in preparing this FAQ, the developer does not guarantee its accuracy nor intends it to form part of any offer or contract. All statements are believed to be correct
but are not to be regarded as statements or representations of facts. The developer reserves the right at any time to make changes to the project at its own discretion.