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Free Guide to Hiring a Real Estate Lawyer
Legal guides written by Smart Legal Solutions:
Real Estate Due Diligence in Bangkok is an essential process undertaken when purchasing or investing in property in Thailand's bustling capital. This detailed evaluation aims to identify any potential issues, legal problems or hidden costs associated with the property before finalizing the purchase. It is a thorough examination of both the physical aspects of the property (such as structural integrity) and the legal aspects (such as ownership, encumbrances, and legal compliance).
Hiring a lawyer specializing in real estate due diligence process in Bangkok becomes crucial in various scenarios. A lawyer can help in performing comprehensive title checks, identifying any encumbrances or liens, reviewing contracts, verifying compliance with local zoning and construction ordinances, and understanding taxation issues. In case of a commercial property, a lawyer can assist in examining leases, licenses, and operational contracts. A legal professional's expertise protects you against potential fraud, errors, or omissions that could lead to future disputes or financial losses.
Local laws in Bangkok stipulate that foreigners cannot own land; however, they can own buildings or purchase 49% share of a condominium's total area. Due diligence therefore involves ensuring the property adheres to the Foreign Business Act B.E. 2542 (1999). Other relevant laws include the Environmental Act, Land Development Act, and the Consumer Protection Act. In case of condominium properties, the Condominium Act B.E. 2522 is applicable. These laws cover multiple areas such as property rights, building codes, and environmental standards which should be thoroughly understood and checked in due diligence.
1. How long does the due diligence process typically take?
The duration varies depending on the complexity of the property transaction, but it usually takes between a few weeks to a couple of months.
2. Can I perform due diligence without a lawyer?
While it's possible, it's not advisable due to the complexity of the process and local laws' intricacies. A mistake could result in considerable financial loss.
3. What is a title search, and why is it important?
A title search verifies the legal owner of the property and checks for any encumbrances, liens, or restrictions on the property. It's critical to ensure that you are legally purchasing the property and would not face any unexpected issues in the future.
4. Can a foreigner own land in Bangkok?
In general, foreigners cannot own land in Thailand, but they can own buildings or acquire a leasehold interest in the land for a period typically between 30-90 years.
5. What if problems arise during the due diligence process?
If issues arise during the due diligence process, a buyer can negotiate these points with the seller, sometimes resulting in a lower purchase price, or choose to withdraw from the purchase.
The Department of Lands and the Legal Execution Department are two government bodies overseeing real estate transactions and due diligence in Thailand. The Thailand Property Law Guide and literature from the Thai Real Estate Business School can provide additional insights and knowledge.
If you need legal assistance in Real Estate Due Diligence, the first step would be to consult with a lawyer who specializes in Thai real estate law. Depending on their advice, begin a thorough due diligence process and cover all physical and legal aspects of property to avoid potential disputes or financial setbacks.
