Thai Legal Services for Real Estate Development and Financing
http://www.lawsays.net/articles/2976/1/Thai-Legal-Services-for-Real-Estate-Development-and-Financing/Page1.html
Gregory Smyth
For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. We provide international standards of legal services while retaining the customs of the Thai business culture. By Gregory Smyth
Published on 07/7/2009
Real estate and land ownership is a hot topic in Thailand, with the unique regional economy making land purchase especially attractive for foreigners. There has been a raft of new Thai laws put in place over recent years, the details of which are not always easily available to foreign investors. We look at when foreign investors should engage Thailand legal services in the purchase process.
Real estate in Thailand, especially that owned by foreigners, is an extremely emotive issue for Thai nationals. There have been a raft of laws passed in recent times aimed at protecting the Thai national interest, and foreign ownership restrictions have slowly become tighter and more complicated. Those interested in purchasing land or properties in Thailand are advised to engage Thai legal services that can assist comprehensively - we look at the areas where Thai law experts can help you.
The real estate purchase plan begins with financing approval, and usually moves onto land acquisition and development. Construction may be the next phase for some that have purchased only land, and while the ownership period is relatively trouble free, more Thai law consulting assistance is usually necessary at the other end of a property cycle. Sales and leasing, as well as corporate and commercial disposals and dispute resolution is best handled by Thai lawyers well versed in real estate law. What are some of the pitfalls of each area, and at what stages is legal assistance non-negotiable?
Land acquisition is usually the most important stage to have your Thai law consulting partners involved in. Your lawyers can help ensure that real estate ownership structure and agreements are within the bounds of the law and not detrimental to you. Compliance is taken care of, as are planning and development permit approvals. Tendering procedures and infrastructure projects require special Thai law assistance - before you engage a lawyer, ask about their expertise in these areas.
Financing for the property is an area that is less critical for your Thai lawyers to be involved in. However, if your finance will be sourced from inside Thailand, lawyers may be able to help with acquisition financing, syndicated loans and with advice on the financing documentation. Carefully weigh the advantages and disadvantages of obtaining finance from within Thailand as opposed to without.
Similarly, if the construction phase applies to your real estate project, there are many areas which you can take care of through outside contractors. Your Thai legal service may simply need to advise on environmental law, infrastructure planning and building matters peculiar to the region. If ancillary project documentation is needed, obtaining Thai law advice is wise. However, for seasoned constructors, investors or developers, some matters like contracting strategy and procurement options, design contracts and tender documentation and consultant's agreements may be handled by your company in-house.
If your company is interested in purchasing an existing property, Thai law firm advice is critical for foreigners. Foreigners may own apartments and condominiums in Thailand, but not actual land. Thai finance companies will not lend money to individuals for the purpose of land purchase, either. However, in some cases Thai partners make it possible for foreigners to partially own and derive an income from property other than apartments and condos. Your Thai legal service can advise according to your particular needs.
The real estate purchase plan begins with financing approval, and usually moves onto land acquisition and development. Construction may be the next phase for some that have purchased only land, and while the ownership period is relatively trouble free, more Thai law consulting assistance is usually necessary at the other end of a property cycle. Sales and leasing, as well as corporate and commercial disposals and dispute resolution is best handled by Thai lawyers well versed in real estate law. What are some of the pitfalls of each area, and at what stages is legal assistance non-negotiable?
Land acquisition is usually the most important stage to have your Thai law consulting partners involved in. Your lawyers can help ensure that real estate ownership structure and agreements are within the bounds of the law and not detrimental to you. Compliance is taken care of, as are planning and development permit approvals. Tendering procedures and infrastructure projects require special Thai law assistance - before you engage a lawyer, ask about their expertise in these areas.
Financing for the property is an area that is less critical for your Thai lawyers to be involved in. However, if your finance will be sourced from inside Thailand, lawyers may be able to help with acquisition financing, syndicated loans and with advice on the financing documentation. Carefully weigh the advantages and disadvantages of obtaining finance from within Thailand as opposed to without.
Similarly, if the construction phase applies to your real estate project, there are many areas which you can take care of through outside contractors. Your Thai legal service may simply need to advise on environmental law, infrastructure planning and building matters peculiar to the region. If ancillary project documentation is needed, obtaining Thai law advice is wise. However, for seasoned constructors, investors or developers, some matters like contracting strategy and procurement options, design contracts and tender documentation and consultant's agreements may be handled by your company in-house.
If your company is interested in purchasing an existing property, Thai law firm advice is critical for foreigners. Foreigners may own apartments and condominiums in Thailand, but not actual land. Thai finance companies will not lend money to individuals for the purpose of land purchase, either. However, in some cases Thai partners make it possible for foreigners to partially own and derive an income from property other than apartments and condos. Your Thai legal service can advise according to your particular needs.