Learn more about property lawyer in Thailand

◊ What are the regulations governing property lawyer in Thailand ?

The Lawyers Council of Thailand regulates property lawyers in Thailand and is subject to the Lawyers Act of Thailand B.E. 2528 (1985). These regulations outline the many qualifications, duties, and ethical standards that property lawyers must wholeheartedly embrace when practicing law in the Southeast Asian country.

There are eight crucial aspects governing Thai property attorneys to ponder:

• Qualifications and Licensing: To become a licensed property lawyer in Thailand, individuals must obtain an accredited law degree from a Thai university and pass the grueling Thai Bar Exam. They must then complete an apprenticeship and training period under the watchful eye of experienced attorneys before being eligible to practice solo.
• Professional Conduct and Ethics: Property lawyers are bound by a rigid code of ethics outlined in the Lawyers Act. They must maintain the utmost professional conduct, honesty, and integrity in all interactions with clients, other attorneys, and the public at large. Any breach of these ethical standards can lead to disciplinary actions.
• Conflicts of Interest: Property lawyers must avoid conflicts that could compromise their ability to provide unbiased and faithful representation to their clients. They must disclose potential conflicts and obtain informed consent from clients before moving forward with legal representation.
• Client Confidentiality: Property lawyers must maintain strict confidentiality regarding all information their clients provide. This duty endures even after the lawyer-client relationship concludes.
• Fee Structure: Property lawyers must communicate their fee structure transparently to clients and furnish written agreements detailing the scope of legal services and associated costs.
• Property Transactions: Property lawyers are pivotal in conducting due diligence for property transactions. They ensure that all legal documents, titles, and contracts are in order and verify property ownership legitimacy. They may also assist in negotiations, drafting agreements, and facilitating property transfers.
• Foreign Clients: Property lawyers often aid foreign clients in navigating Thai property law complexities, as regulations for non-resident property ownership can be intricate. They help ensure that international clients comply with relevant laws and regulations.
• Continuing Legal Education: Property lawyers are encouraged to participate in continuing legal education to stay abreast of changes in property laws and regulations and developments in legal practices and procedures.

Therefore, these regulations collectively uphold the integrity of the legal profession and ensure that property lawyers in Thailand provide competent and principled legal services to their clients.

◊ What is property law in Thailand ?

Property law in Thailand establishes the legal rules surrounding land and building possession, usage, transfer, and administration. Real estate covers terrain, structures, and other constructions permanently attached to terrain. Nuanced statutes and provisions within property law in Thailand determine how ownership rights are developed, safeguarded, and compelled. Several elements of property law in Thailand merit examining:

• Holding and documentation: Property ownership in Thailand is managed by diverse regulations like the Civil and Commercial Codes as well as the Land Code. Proving possession is through land title deeds provided by the government. Distinct types of land title deeds impart extra liberties and boundaries on owners.
• Limitations for foreigners: Non-nationals and overseas companies face certain constraints on property ownership in Thailand. Restrictions exist regarding land dimensions and applications. Yet, aliens can fully own buildings and condo units in some scenarios.
• Zoning and approved applications: Property law in Thailand incorporates zoning and approved use provisions. Various zones are designated for residential, commercial, agricultural, and industrial applications. These statutes decide how terrain can be evolved and applied.
• Leases and tenancies: Property law covers rental and occupancy contracts, outlining the conditions under which persons or entities can use belongings possessed by others. Agreements specify landlords’ and renters’ rights and duties.
• Property exchanges: Purchasing, selling, and transferring property needs legal methods like due diligence, contract drafting, title handover, and registration. Attorneys are crucial to ensuring transactions are properly and legally conducted.
• Rights-of-way and servitudes: Property law addresses easements and servitudes, entitlements granted to a party to use or access another’s property for specific purposes, such as access to a public road or utilities.
• Ecological regulations: Property law in Thailand likewise incorporates ecological rules that may impact property progress and application. Guidelines aim to safeguard the environment.
• Intellectual property: Intellectual property law covers rights related to real property, like trademarks related to properties, building designs, and architectural copyrights.
• Property disputes: When property-linked clashes emerge, property law gives the legal framework for resolving conflicts through negotiation, mediation, or legal proceedings.
• Condominium possession: Condominium ownership statutes are a significant property law aspect in Thailand. Foreigners can possess a fixed percentage of units in a condominium construction, subject to explicit conditions and restrictions.

◊ Do you need a property lawyer when buying property in Thailand ?

While hiring a lawyer when buying property in Thailand is not legally required, few would dispute the merits of engaging competent counsel, especially for those unfamiliar with the intricacies of Thai statutes. The Thai real estate milieu can prove intricate, its regulations sometimes markedly divergent from those customary elsewhere. Retaining a qualified property attorney provides numerous advantages, facilitating a smooth, secure transaction. Consider the benefits:

• Guiding buyers through complex rules proves pivotal, as Thai laws may differ substantially from one’s home jurisdiction. A lawyer well-versed in property code can elucidate requirements, reducing risks of inadvertent noncompliance.
• Prudent due diligence verifies undisputed possession, clear title unencumbered by liens. Counsel ensures the property may legally transfer to buyer as intended.
• Contracts integral to any purchase receive careful review and artful drafting, negotiations protecting one’s interests while agreements accurately reflect all parties’ will.
• Professional assistance also aids title transfer’s formalities, prepared documents properly submitted to relevant authorities. Proper registration thus confirms ownership.
• Alert counsel identifies potential issues, empowering well-informed decisions which circumvent disputes and complications down the line.
• Non-Thais face ownership restrictions that counsel skillfully guides buyers to navigate, structuring acquisition for full code compliance.
• Should any problems arise, representation negotiated solutions preferably without litigation, its costs.
• Language and cultural barriers cease hindering communication through counsel’s facilitation, all involved remaining clear on the transaction.

While legal fees incur additional outlay, avoiding later difficulties through prudent counsel, a smooth process, and protected investment often more than offset the cost. Choosing an experienced attorney proven in property law provides tailored advice throughout the Thai purchase.

◊ Can a foreigner be a property lawyer in Thailand?

The Lawyers Act of Thailand does not explicitly prohibit foreigners from practicing law in the country. However, there are a number of barriers and qualifications foreigners would need to meet to legally work as an attorney. Obtaining permission and fulfilling licensing standards set by the Lawyers Council of Thailand can prove a perplexing process for overseas candidates.

Those seeking to provide counsel in Thailand may find themselves having to pursue the rigors of Thai legal education to gain recognized proficiency. While partnerships with local firms offer a potential avenue, independent representation involving courtroom proceedings poses considerable challenges. Language fluency is fundamental as Thai remains the dominant terminology of the courts and paperwork. Should a foreign lawyer find avenues to offer guidance on international matters, directly litigating cases or client representation within Thai courts presents a more nuanced situation.

While not explicitly banned, the act establishes complex conditions foreigners must address relating to work visas, examinations, demonstrated expertise in domestic law and other criteria administered through the Lawyers Council. The requirements could involve obtaining an equivalent Thai law degree or qualifications acknowledged by that governing body.

◊ Can a foreigner own a condominium in Thailand ?

The law in Thailand allows foreigners to own condominiums and has made it very clear on the matter. It specifies that foreigners are allowed to own up to 49% of the total sale-able area of each condominium project. This quota system means that a strict balance is maintained between local and foreign ownership with in any one condominium community in Thailand that can effectively mean that after the 49% foreign ownership quota is reached in a particular condominium project, purchase of a unit on a leasehold basis may be an option and failing that purchasing a unit through a Thai company that the foreign buyer is able to maintain at less than 49% foreign ownership is another. This means that there is no shortage of foreign investment in the Thai condominium market, even after a project has reached its foreign ownership cap.

It is very important to note that the right to ownership of a condominium is strictly awarded to the foreign individual, there is no allocation for extension of any foreign ownership to his or her foreign successors which can have clear implications for estate planning and inheritance.

A foreigner who meets the criteria of ownership set out under Section 19 of the Condominium Act is equally eligible to purchase and own his home in a Thai condominium.

One must take caution however, a foreign buyer should be aware that in a condominium building no more than 49% of all the units can be sold to foreign buyers and the remaining 51% of the condominium must remain in Thai ownership so the balance of ownership clearly ensures that the local community retains a majority stake in any condominium property in it nation.

◊ Land ownership in Thailand

Generally, the Thai Land Code Act states that foreigne persons are prohibited from having ownership of land in Thailand under their name, subject to certain exemptions. Foreigners can own a unit within certain condominiums and they can own a resort dwelling or a hotel with ministerial consent under the Condominium Act. Here are the major points regard land and property ownership by foreign ownership in Thailand :

• Inheritance of Land: While a foreigner can inherit land, they are not allowed to register the ownership name and also have to dispose off the land within 1 year from the day of acquirement.
• Company Ownership: However, a foreigner can own a land through a Thai company,but the Thai company must have at least 51% Thai ownership.
• BOI or LTR Program Ownership: A Land ownership may is possible with Board of Investment (BOI) or with a long term resident visa program by denomination field conditions.

The actual conditions can be vary from the actual estate location and personal situation. So, it is advised anyone interested to obtain professional advices from a Thai Property Law specialist and experience a correct procedure and subdivisions of the property law.

◊ Our Services for the Acquisition of Your Property

Acquiring property in Thailand involves intricate legal processes. A specialized law firm in Thailand can provide comprehensive services to ensure a smooth transaction. Here’s an overview

• Legal Due Diligence: This stage in the process will require the Review of the seller deeds, contracts, permits, along with the identification of potential legal issues or encumbrances by experienced property lawyers and specialists.

• Contract Review and Negotiation: Not all purchase agreements are the same in Thailand and whatever the type of agreement (low or high value property land purchases or lease agreements) experienced Thai property lawyers should tailor the agreement to protect the buyer’s interest in compliance with Thai laws.

• Title Transfer and Registration: This requires the handling all aspects of the property, land purchase or property lease process as it pertains to the transfer of the title from the buyer and the seller, the preparation and submission of all documents necessary for the registration of the title and in general, ensuring the accuracy and expedience of the transaction and registration process.

• Escrow Services: Acting as a neutral third party, the escrow agent will maintain explicit written instructions from the seller and the buyer to enable them to handle the transaction in a manner completely agreed to and understood by the parties, thereby ensuring a secure transfer of funds and a transparent transaction process.

• Tax Planning and Compliance: Strategic tax planning advice as well as the preparation of all forms and/or returns to ensure the buyer is in full compliance of Thai tax laws as it relates to property acquisition and from rental income generated from the property.

• Foreign Ownership Regulations: Foreign property ownership in Thailand falls outside of the scope of the property laws application in the West. As such, a relatively inexperienced property lawyer in Thailand can easily overlook several acquisition structures that can significantly enhance protection for the foreign purchaser. Experienced Thai property lawyers can therefore provide the buyer guidance on such highly specialized property acquisition structures, property ownership restrictions for foreigners, the drafting of the documents to establish and regulate a foreign and Thai company co-ownership and possible variations of a leasehold structure or Thai company setup to fit an exact buyer’s needs and future plans for the property.

• Dispute Resolution: Not all disputes are resolved in court and with the prohibitive cost of court time in Thailand and the lenient rules of the court regarding lawsuits, it is vitally important that there be at least some level of meaningful attempt resolution through negotiations, mediation and arbitration. Services in this area can provide the buyer and the seller with all forms of dispute resolution services, legal representation before administrative agencies, negotiation assistance, and full representation in court should the parties not reach a successful dispute resolution.