Bangkok Law Firm

Category: Property Law

Property Law

Property Leasehold in Thailand

Dec 2, 2024 by Legal Advisors 0 Comments

Property Leasehold in Thailand is a significant decision, especially for foreigners, due to the country’s restrictions on foreign land ownership. Leasehold agreements offer an alternative, enabling foreign individuals and companies to legally occupy and use property for an extended period. This guide explores the leasehold system in Thailand, its legal framework, advantages and limitations, and strategic factors for both investors and residents.

Leasehold vs. Freehold: Key Differences

In Thailand, property ownership structures are categorized into freehold and leasehold:

  • Freehold Ownership: Provides indefinite ownership rights over land or property. Foreigners cannot directly own land under Thai law, although they can own condominium units freehold under specific conditions.
  • Leasehold Ownership: A long-term lease agreement where the lessee (tenant) rents the property for a fixed period, typically 30 years, with an option to renew.

For foreigners, leaseholds are a common way to control real estate while complying with Thai legal restrictions.

Legal Framework for Leasehold in Thailand

1. Lease Term Limits

  • The maximum initial lease term for land or property is 30 years under Thai law (Section 540 of the Civil and Commercial Code).
  • Renewals: Lease agreements can include renewal clauses (typically two additional 30-year terms), but these are not automatically enforceable. Each renewal must be registered and signed as a new contract.

2. Registration Requirements

  • Lease agreements exceeding 3 years must be registered at the Land Office to be legally enforceable.
  • A registration fee of approximately 1% of the total lease value is payable to the Land Department.

3. Lessee Rights and Obligations

  • Lessees have the right to exclusive possession and use of the property during the lease term.
  • Lessees must comply with the terms of the lease agreement, including maintenance responsibilities and property usage.

4. Transfer of Leasehold Rights

  • Lessees can transfer or sublease their rights to another party, provided the original lease agreement permits it and the transfer is registered with the Land Department.
  • Inheritance: Leasehold rights can be passed on to heirs, but this must be explicitly stated in the contract.

Advantages of Leasehold Property in Thailand

1. Legal Security for Foreigners

Leasehold arrangements provide a legally compliant pathway for foreigners to control real estate, especially land, for an extended period without violating ownership restrictions.

2. Cost-Effectiveness

Leaseholds generally involve lower upfront costs compared to purchasing freehold property, making them attractive for investors or expatriates seeking long-term residence.

3. Flexibility in Use

Lessee rights often include the ability to develop, modify, or build on the land, subject to the lease agreement’s conditions and local zoning laws.

Challenges and Risks of Leasehold Agreements

1. Renewal Uncertainty

While lease agreements may include renewal clauses, these are not automatically binding. Renewal depends on the willingness of the landowner to sign a new lease, and there is no guarantee this will happen, even if stipulated.

2. Landowner Risk

If the landowner sells the property or passes away, the new owner must honor the existing lease. However, this can lead to legal disputes if the contract is unclear or improperly registered.

3. Limited Control

Unlike freehold ownership, leasehold does not confer full control over the property. Restrictions on development or subleasing may apply, depending on the lease agreement.

4. Depreciating Asset

As the lease term progresses, the value of the leasehold decreases, unlike freehold property which typically appreciates over time. This depreciation affects resale potential.

Leasehold vs. Freehold Condominiums

Foreigners are permitted to own condominiums freehold under the Condominium Act, provided foreign ownership in the building does not exceed 49% of the total units. This often makes freehold condos more attractive for residential buyers. However, leasehold remains the primary option for those seeking to control landed property, such as villas or houses.

Strategic Considerations for Leasehold Investments

1. Due Diligence

Conduct thorough due diligence before entering a leasehold agreement:

  • Verify the land title deed (Chanote is the highest title and most secure).
  • Ensure the lease agreement is properly drafted and registered.
  • Engage a qualified Thai lawyer to review the contract for renewal clauses, subleasing rights, and dispute resolution terms.

2. Structuring Lease Agreements

A well-drafted lease agreement should include:

  • Clear Renewal Terms: Specify procedures and conditions for lease extension.
  • Transfer and Inheritance Provisions: Ensure these rights are explicitly stated.
  • Dispute Resolution Mechanisms: Consider including arbitration clauses to handle potential conflicts.

3. Alternative Strategies: Thai Limited Company

Some foreign investors establish a Thai Limited Company to purchase freehold land, where the foreigner owns 49% or less of the shares, and the remainder is held by Thai nationals. This approach offers more control but comes with additional legal and tax complexities.

Legal Safeguards for Foreigners

1. Land Title Verification

Ensure the land has a legitimate title deed. The most secure types are:

  • Chanote (Title Deed): Full ownership rights with precise boundaries.
  • Nor Sor 3 Gor: Similar to Chanote but not yet fully surveyed.

2. Registration of Lease Agreements

Registering the lease at the Land Office is crucial for enforceability. Without registration, the lease cannot be legally enforced beyond three years.

3. Legal Representation

Working with a reputable law firm or property consultant experienced in Thai real estate law minimizes risks and ensures compliance with local regulations.

Tax Implications

1. Rental Income Tax

Leaseholders who sublease or rent out their property must declare rental income and pay tax accordingly.

2. Property Taxes

  • Lease Registration Tax: 1% of the total rental value.
  • Withholding Tax: 5% for individuals or 3% for companies when paying rental fees to the landlord.

Conclusion

Leasehold property offers a practical solution for foreigners and investors to legally occupy and develop land in Thailand. While it comes with certain limitations, careful planning, thorough due diligence, and clear lease agreements can mitigate risks. Understanding the legal framework, structuring strategic lease terms, and engaging experienced legal professionals are crucial steps to ensuring a secure and beneficial leasehold investment in Thailand’s dynamic real estate market.

Title Search in Thailand
Property Law

Title Search in Thailand

Jan 23, 2024 by Legal Advisors 0 Comments

Title Search in Thailand. Real estate capital is significant, so property ownership validity is vital. A thorough title search is essential in Thailand’s real estate purchase process. In Thailand, title searches are crucial, and this article discusses the legal framework and steps to conduct a thorough title search.

I. The Relevance of Title Search

A. Property Buyer Protection:

Title searches evaluate a property’s ownership history, guarantees purchasers that they are purchasing from legitimate sellers.
Knowing the property’s title is clear gives buyers ease.

B. Risk Reduction

Identifying liens, mortgages, and legal issues lowers buyer risk.
A thorough title search lets parties address concerns before closing.

C. Compliance with laws:

Title searches guarantee property conformity with local zoning and restrictions.
Development and land use changes need an understanding of a property’s legal status.

II. Thai Property Title Law

A. Land Code Act:

The Land Code Act is fundamental to Thai land ownership law.
It explains land titles and property transaction laws.

B. Land Title Types:

Chanote (Title Deed): The most secure and accomplish land title, outlining property boundaries and ownership.
Nor Sor 3 Gor and Jor: Intermediate titles with fewer data than Chanote but property transactions.
Sor Kor 1: A limited-right possessory title that can be converted to Nor Sor 3 Gor or Chanote

III. Title Search Steps

A. Participation of Professional Services:

Thai real estate attorneys and title search firms are frequently utilized by buyers.
Experts understand property paperwork and negotiate difficult legal issues.

B. Land Title Verification:

First, establish the property’s land title.
Chanote titles are often favored for clarity and authenticity.

C. Encumbrance Inquiry:

Mortgages, liens, and easements are made clear by reviewing the property history.
Buyers can consider how these encumbrances affect property value and plans.

D: Legal Dispute Investigation:

Checking for property-related lawsuits is vital.
For informed decision-making, issues must be resolved or understood.

E. Ensure Proper Documentation:

A title search confirms that all property documents have been authenticated and executed.
For transaction integrity, these documents must be correct.

IV. Title Search Problems

A. An incomplete record:

Land records may be not enough or outdated, establishing title history problematic.
Professionals have to handle such scenarios carefully to assess properly.

B. Informal Land Use:

Informal land occupation, especially in rural areas, hinders title searches.
Problems between informal use and legal ownership are broad.

V. Conclusion

A thorough title search serves a purpose in Thai real estate deals. Understanding land titles and working with Thai real estate experts can help buyers and investors reduce risks, conform with the law, and gain trust in their investments. As Thailand’s real estate market develops, title searches ensuring property transactions are transparent and secure, creating confidence and sustainability.

Property Law

Thai Will and Succession

Aug 24, 2023 by Legal Advisors 0 Comments ,

Thai wills and succession planning are essential legal instruments that ensure the orderly transfer of assets and the fulfillment of wishes after a person’s passing. In Thailand, a country rich in cultural heritage and a diverse legal landscape, understanding the nuances of Thai wills and succession is crucial. This article delves into the significance of Thai wills, the succession process, key components, legal considerations, and the role they play in safeguarding the interests of families and individuals.

Importance of Thai Wills and Succession:

Thai wills and succession planning serve multiple purposes that go beyond the distribution of assets:

  1. Asset Distribution: Thai wills provide a mechanism for individuals to specify how their assets should be distributed among beneficiaries.
  2. Guardianship: Wills can designate legal guardians for minor children, ensuring their well-being.
  3. Executor Appointment: Executors are appointed to manage the estate and ensure that the deceased’s wishes are carried out.
  4. Minimization of Conflicts: A well-drafted will can help prevent family disputes and confusion over asset distribution.

Key Components of Thai Wills:

A Thai will typically includes several key components:

  1. Testator’s Information: The full name, address, and other identifying details of the person making the will (the testator).
  2. Appointment of Executor: The person responsible for administering the estate according to the terms of the will.
  3. Beneficiaries: Individuals or entities named to receive specific assets or inherit the estate.
  4. Asset Details: Comprehensive details of assets, including real estate, financial accounts, personal belongings, and investments.
  5. Specific Bequests: Detailed instructions for specific gifts or bequests to particular beneficiaries.
  6. Residuary Clause: Instructions for the distribution of remaining assets after specific bequests are fulfilled.
  7. Guardianship Provision: Designation of legal guardians for minor children.

Legal Considerations:

Navigating the legal aspects of Thai wills and succession is essential:

  1. Legal Age: The testator must be at least 15 years old to create a valid will.
  2. Legal Capacity: The testator must be of sound mind and not under duress when creating the will.
  3. Formalities: Thai wills must be in writing and signed by the testator in the presence of at least two witnesses.
  4. Witnesses: Witnesses should be present when the testator signs the will and subsequently sign the will themselves.

Succession Planning in Thailand:

In Thailand, succession planning goes beyond wills and may involve other legal mechanisms:

  1. Intestate Succession: If a person passes away without a valid will, Thai law governs the distribution of assets according to intestate succession rules.
  2. Legal Restrictions on Ownership: Foreigners cannot own land in Thailand under certain conditions. Succession planning for property owned by foreigners may involve leases, usufructs, or setting up legal entities.
  3. Marital Property: Thailand follows a community property system for married couples. Proper succession planning can help ensure a fair distribution of marital property.

Foreign Nationals and Succession:

For foreign nationals residing in Thailand, succession planning may involve unique considerations:

  1. International Assets: Foreign nationals may need to address the distribution of assets located in their home countries or other jurisdictions.
  2. Dual Wills: Some foreign nationals create dual wills—one under Thai law for assets in Thailand and another under the laws of their home country.

Importance of Legal Counsel:

Engaging legal professionals is highly recommended when dealing with Thai wills and succession planning:

  1. Legal Expertise: Attorneys possess the legal knowledge to guide individuals through the complexities of Thai inheritance laws.
  2. Cross-Border Issues: Legal professionals can address issues related to international assets and dual citizenship.
  3. Cultural Sensitivity: Attorneys with local expertise understand the cultural nuances that may impact inheritance decisions.

Succession Process:

The succession process involves several steps:

  1. Notification: Upon the death of an individual, heirs should notify the local district office within 15 days.
  2. Probate Application: If a will exists, the will needs to be submitted to the local district office for probate.
  3. Asset Inventory: An inventory of assets is prepared, including valuations and documentation.
  4. Claims and Debt Settlement: Creditors’ claims are assessed and settled, and the estate’s debts are paid.
  5. Distribution: Assets are distributed according to the terms of the will or intestate succession laws.

Conclusion:

Thai wills and succession planning are integral to preserving legacies, securing the future of loved ones, and ensuring the orderly transfer of assets. As Thailand’s cultural heritage intersects with legal complexities, understanding the key components and legal considerations of Thai wills becomes essential. Whether safeguarding assets, minimizing conflicts, or designating guardians, Thai wills and succession planning reflect an individual’s desire to leave a lasting impact and provide for those they care about most. Through proper legal counsel and meticulous planning, individuals can navigate the intricacies of Thai inheritance laws, ultimately achieving their goals for asset distribution and legacy preservation.

Property Law

Sales Contract Review in Thailand

Aug 24, 2023 by Legal Advisors 0 Comments ,

A sales contract is a pivotal document in real estate transactions, outlining the terms and conditions of the sale. In Thailand’s vibrant real estate market, a thorough review of the sales contract is crucial to ensure clarity, fairness, and legal compliance for both buyers and sellers. This article delves into the significance of sales contract review in Thailand, its key components, legal considerations, and the role it plays in safeguarding the interests of all parties involved.

Importance of Sales Contract Review:

A sales contract serves as a blueprint for the real estate transaction, providing a clear understanding of the rights and obligations of both parties. In Thailand, where the real estate market is diverse and multifaceted, a comprehensive review of the sales contract holds several vital purposes:

  1. Legal Protection: A well-drafted and reviewed sales contract protects the interests of both buyers and sellers, minimizing the potential for disputes and misunderstandings.
  2. Clarity of Terms: A thorough review ensures that the terms and conditions of the sale are clearly defined, leaving no room for ambiguity.
  3. Compliance: The sales contract should align with Thai property laws and regulations to ensure legal compliance.
  4. Transparency: A transparent and comprehensive sales contract fosters trust between parties and promotes a positive real estate transaction experience.

Key Components of Sales Contract Review:

A comprehensive sales contract review in Thailand should encompass the following key components:

  1. Purchase Price and Payment Terms: Clearly outline the purchase price, payment schedule, and any deposit or earnest money required.
  2. Property Description: Provide an accurate and detailed description of the property, including its boundaries and features.
  3. Title and Ownership: Verify that the seller has clear title to the property and has the legal right to sell it.
  4. Conditions of Sale: Specify any conditions that need to be met before the sale is finalized, such as obtaining necessary permits or approvals.
  5. Seller’s Representations and Warranties: Ensure that the seller’s representations about the property’s condition and history are accurate.
  6. Buyer’s Obligations: Clearly state the obligations of the buyer, including any due diligence they need to perform.
  7. Closing Date: Specify the closing date and any contingencies related to the closing.

Legal Considerations:

Navigating the legal landscape is crucial during sales contract review in Thailand:

  1. Thai Property Laws: The sales contract must adhere to Thai property laws, including those related to ownership, taxes, and regulations.
  2. Foreign Ownership: Foreign buyers must ensure that their ownership rights align with Thai legal requirements.
  3. Due Diligence Thailand: Review all relevant property documents, permits, and legal records to ensure accuracy and compliance.

Review Process:

Thoroughly reviewing a sales contract in Thailand involves several steps:

  1. Initial Examination: Carefully read the contract to understand its terms, conditions, and obligations.
  2. Legal Expertise: Seek legal advice from a qualified real estate attorney who is familiar with Thai property laws.
  3. Property Documents: Verify the accuracy of property documents, titles, permits, and other relevant records.
  4. Negotiation: If any terms are unclear or need adjustment, negotiate with the other party to reach a mutual understanding.
  5. Translation: If the contract is in a language other than Thai, ensure that it is accurately translated to avoid misunderstandings.
  6. Consideration of Local Practices: Consider local customs and practices that may impact the interpretation of certain clauses.

Buyer and Seller Protection:

Sales contract review protects the interests of both buyers and sellers:

  1. Buyers: A thorough review ensures that buyers are aware of the property’s condition, ownership, and legal status.
  2. Sellers: Sellers benefit from a well-drafted sales contract that clearly outlines their obligations and minimizes potential liabilities.

Role of Legal Professionals:

Engaging a real estate attorney in Thailand is highly recommended during the sales contract review process:

  1. Expertise: Attorneys possess the legal expertise needed to assess the contract’s compliance with Thai property laws.
  2. Negotiation: Attorneys can negotiate on behalf of their clients to ensure favorable terms.
  3. Risk Mitigation: Attorneys identify potential risks and advise on strategies to mitigate them.

Conclusion:

Sales contract review is a cornerstone of responsible real estate transactions in Thailand, providing buyers and sellers with clarity, protection, and confidence. In a dynamic real estate market, where cultural norms and legal requirements intersect, a well-reviewed contract can prevent disputes and lay the foundation for a successful transaction. By ensuring compliance with Thai property laws, addressing potential issues, and fostering transparent communication, the sales contract review process contributes to a thriving real estate environment that benefits all parties involved.

 

Property Law

Property Due Diligence in Thailand

Aug 24, 2023 by Legal Advisors 0 Comments ,

Property due diligence is a critical process that ensures transparency, minimizes risks, and enhances informed decision-making in real estate transactions. In Thailand, a country known for its diverse real estate market, property due diligence holds immense significance. This article delves into the concept of property due diligence in Thailand, outlining its importance, key components, legal considerations, and the role it plays in safeguarding both buyers and sellers.

Importance of Property Due Diligence:

Property due diligence involves a comprehensive investigation and verification of property-related information to uncover any potential issues or risks. In Thailand’s dynamic real estate landscape, due diligence serves several vital purposes:

  1. Risk Mitigation: Due diligence identifies potential risks, such as legal disputes, title defects, encumbrances, or zoning violations, enabling parties to assess and manage these risks effectively.
  2. Informed Decision-Making: Buyers and investors can make informed decisions based on accurate and verified information about the property’s condition, ownership, and legal status.
  3. Transparency: Property due diligence promotes transparency between parties, fostering trust and ensuring fair dealings.

Key Components of Property Due Diligence:

Property due diligence encompasses various components that need careful examination:

  1. Title Verification: Ensuring a clear and marketable title by confirming ownership and checking for any encumbrances or liens.
  2. Land Zoning and Regulations: Verifying that the property complies with local zoning regulations and land use restrictions.
  3. Legal Compliance: Ensuring that the property adheres to relevant laws, regulations, and permits.
  4. Environmental Assessments: Evaluating potential environmental risks or liabilities associated with the property.
  5. Physical Inspection: Conducting on-site inspections to assess the condition of structures, utilities, and other physical aspects.
  6. Utilities and Infrastructure: Verifying the availability and functionality of utilities, roads, and essential infrastructure.
  7. Financial and Taxation Analysis: Assessing financial aspects, including property taxes, outstanding assessments, and potential expenses.

Legal Considerations:

Property due diligence in Thailand involves adherence to legal procedures and consideration of specific factors:

  1. Thai Land Code: The Thai Land Code governs property ownership, rights, and regulations in Thailand.
  2. Title Search in Thailand: A comprehensive title search is crucial to verify ownership, encumbrances, and other title-related details.
  3. Foreign Ownership: Foreigners have certain restrictions on owning land in Thailand, making due diligence even more crucial to ensure compliance.
  4. Leasehold Properties: Due diligence for leasehold properties involves assessing lease terms, renewability, and any restrictions.
  5. Off-Plan Properties: Due diligence for off-plan properties involves evaluating the developer’s track record, project approvals, and construction progress.

Due Diligence Process:

The property due diligence process in Thailand involves several steps:

  1. Initial Assessment: Gather basic property information and conduct a preliminary assessment.
  2. Title Search: Perform a thorough title search to verify ownership and any encumbrances.
  3. Document Review: Examine property documents, contracts, permits, and relevant legal records.
  4. Site Inspection: Physically inspect the property to assess its condition and compliance with regulations.
  5. Legal Compliance: Verify compliance with zoning regulations, environmental laws, and other legal requirements.
  6. Financial Analysis: Assess financial aspects, including taxes, assessments, and potential costs.
  7. Report Compilation: Compile a due diligence report summarizing findings, risks, and recommendations.

Role of Professionals:

Property due diligence is a complex process that often requires expertise from various professionals:

  1. Legal Advisors: Lawyers familiar with Thai property laws can guide parties through legal complexities.
  2. Real Estate Agents: Experienced agents can provide market insights and assist with property research.
  3. Surveyors: Professional surveyors assess the physical condition of the property and its structures.
  4. Environmental Experts: Specialists can assess potential environmental risks associated with the property.

Conclusion:

Property due diligence is a cornerstone of responsible real estate transactions in Thailand. As the real estate market continues to evolve, due diligence ensures that both buyers and sellers are well-informed and protected throughout the process. By uncovering potential risks, verifying legal compliance, and providing transparency, property due diligence contributes to a more secure and thriving real estate environment, enabling parties to make confident decisions while navigating the complexities of property ownership in Thailand.

Property Law

Property Title Transfer in Thailand

Jun 12, 2023 by Legal Advisors 0 Comments ,

There are usually numerous significant pieces of information and documentation necessary when transferring a property title in Thailand. Here are some significant features and information about Thailand’s property title transfer process:

1. The title deed is the official document that certifies ownership of the property (chanote). Along with the owner’s name, it includes information on the property’s location, borders, and area. Throughout the transfer process, the original title deed must be produced.

2. Identification Documents: To prove their identities, both the buyer and the seller (or their authorized representatives) must produce identification documents such as passports or Thai ID cards.

3. Purchase Agreement: A purchase agreement, also known as a sales contract, is a document outlining the terms and circumstances of the acquisition of real estate. It contains information about the purchase price, the terms of payment, and any unique conditions that both parties have agreed upon.

4. Transfer Fees: The buyer is liable for paying transfer fees, which are ordinarily calculated as a percentage of the appraised value of the property. These charges pay for the office expenses related to the ownership transfer.

5. Taxes: During the property transfer procedure, a number of taxes, such as specific business tax, stamp duty, and withholding tax, may be due. The precise tax requirements depend on elements like the kind of property, how long the owner has had it, and the seller’s tax situation.

6. Due Diligence Reports: It is recommended to carry out due diligence before the transfer to make sure that the property has a clear title and is free of any liens, disputes, or legal concerns. This can entail requesting a report from a lawyer or searching the nearby land office.

7. Receipts and Payment Proof: As proof of the financial transactions related to the property transfer, documentation of payment, such as receipts and proof of money, should be retained.

8. Land Office Procedures: The local land office where the property is located is where the property’s title is transferred. The land office will examine the paperwork, confirm the specifics of the sale, and amend the ownership records as necessary.

9. Legal Representation: It is strongly advised to retain the services of an experienced attorney or a respected real estate agent to ensure compliance with Thai rules and regulations and to expedite a quick transfer procedure.

It’s vital to keep in mind that depending on the location, type of property, and any special circumstances involved, the content and particular criteria for property title transfer may change. To successfully traverse the process, it is advised to obtain expert guidance and help.

Property Law

How Important is Contract Review in Thailand

Feb 2, 2023 by Legal Advisors 0 Comments ,

How Important is Contract Review in Thailand

A good contract can ensure that your sale transaction goes through smoothly, but it’s not without its share of legal complications. While market forces, unequal bargaining positions, and fraud often get in the way of a fair agreement, there are some steps you can take to protect yourself from these risks. One of those steps is to get a lawyer to review your property purchase contract before you sign it.

This can help you avoid costly legal battles and keep your finances and peace of mind intact. This is especially true for foreign buyers, who don’t have the same familiarity with Thai laws as locals do. A lawyer will be able to review your contract and make sure that it adheres to all of the legal requirements in Thailand.

The benefits of a lawyer’s review include:

1. A contract review will ensure that your rights are protected.

This is important because Thai property laws are strict and can result in unfavorable legal consequences if you don’t follow them. A lawyer will check that your contract complies with these requirements and can also recommend any changes that need to be made.

2. A lawyer’s review will allow you to understand the fine print of the contract and identify any issues that may lead to litigation.

A lawyer will read the contract line-by-line and will highlight areas that aren’t clear. He or she will then be able to revise the document accordingly, improving your chances of a successful purchase.

3. A lawyer’s review will save you time and money

When it comes to buying property in Thailand, it is vital to have a lawyer review your contract. This will ensure that you are getting a fair deal and that you don’t end up with anything less than you deserve.

4. A lawyer’s review will help you get the best deal

A reputable lawyer will be able to ensure that you get a good deal when it comes to purchasing property in Thailand. He or she will be able to identify any issues with your contract and can recommend changes that will help you get a better price for the property.

5. A lawyer’s review will help you stay in Thailand safely and securely

It’s vital to have a lawyer review your sale and purchase contract if you’re planning on staying in Thailand for a long period of time. This will ensure that you don’t lose your property or have to leave the country in an unsafe manner.

6. A lawyer’s review will prevent you from losing your investment

The language of the Thai Civil and Commercial Code is complex and there are time limits for breaching contracts ranging from 30 days to 30 years. A lawyer can ensure that your contract is clear and enforceable in Thai courts so that you don’t have to worry about losing your investment or being in danger of being caught in a fraudulent sales transaction.

Property Law

Importance of Due Diligence in Thailand

Feb 2, 2023 by Legal Advisors 0 Comments , ,

Due diligence is a legal procedure that is used to ensure that everything involved in a business deal is above board and will not cause any problems with the transaction. This includes performing a property inspection and conducting a title deed search before making any purchases.

This is a vital step in any investment, especially when it involves real estate in Thailand. You can save yourself from a lot of headaches and expenses by ensuring that you do your due diligence correctly.

In order to perform a due diligence, you need to find an attorney who is well-versed in the legal aspects of buying and selling properties. These attorneys will be able to verify the property’s legal status and check if there are any legal encumbrances or rights attached to it.

You will also need to ensure that the land has not been encumbered by any of the following: Mortgages, lease agreements, or loans. This is because these can lead to legal problems in the future.

It is also a good idea to check the property’s zoning laws. This can prevent you from purchasing an unsuitable property or paying for a plot of land that is not allowed to be developed.

During the due diligence process, you will also need to make sure that the developer of the property is trustworthy. You will need to ensure that they have passed all of their environmental impact studies and zoning regulations. This will also protect you from any potential lawsuits in the future.

The property can also be inspected to check for drainage problems, road access, and disturbances in the environment. It is also a good idea to ask about the phone and sewage systems so that you can make sure they are functioning properly.

You will need to know that there is no land ownership that has not been registered by the local land office, which means that this can be adjusted or nullified at any time. This is why it is essential to have the title deed of the property inspected to ensure that it has been registered correctly.

Thailand Property Awards
Bangkok Law, Property Law

Thailand Property Awards

Sep 14, 2012 by Legal Advisors 0 Comments , , , , ,

Each year the property awards in Thailand gathers all the major players in the field of property developments and infrastructure development. Attending is the who’s who of the Thai property sector. Law Firm in Thailand attends each year. 2008 was what many had considered a bad year globally for the property, however, judging from the 2009 attendance lists and the number of nominations one is left to wonder where the recession is. The property awards is a good judge of what one might expect in the Thai property market for the year ahead.

In 2008, a selection of anonymous judges from around the country used a scoring system whereby the highest five scorers made the short-list. This year a team of independent judges will produce the short-lists through a consultative process and the panel will be announced publicly.

“It is a significant change this year. We’ve had feedback that people would like to know who the judges are. So this year we will announce the judging panel. We are recruiting the panel now and are being selective to ensure fair representation and no bias. The panel will cumulatively have nationwide knowledge, be both experienced on the Thai real estate industry and in general business, and a number of nationalities will be represented,”

Those short-listed in the development categories will then be contacted and visited by local judging teams in Bangkok, Eastern Seaboard, Phuket, Samui, and Hua Hin, respectively. Following the site visits, the local teams will select the winners.

Following their success in 2008 and involvement in the awards since the beginning in 2006, BDO Richfield Advisory Limited have again been engaged by the organizers to oversee the nomination, entry and judging process, and to ensure all is transparent and fair. BDO Richfield Advisory Limited and the organizers of the awards are not involved in judging the awards

 

Bangkok Law Firm
Facebook Twitter Youtube

Copyright © 2024 Bangkok Law Firms in Thailand.

All rights reserved.