Due Diligence Phuket Lawyer

What is Legal Due Diligence – And why is it Necessary?

Buying a business is quite risky, especially if you don’t take precautionary measures. Why so? Let’s put this into perspective; when you buy a tangible asset such as a car or one of the beautiful pieces of real estate in Phuket, you can easily inspect the property (or hire a professional) to determine the value of what you’re buying. But when it comes to purchasing a business or similar complex asset, it’s exact value is not obvious. In business, there are many intangible items and possible hidden traps – what you see is not always what it seems.

This is where due diligence by a credible Phuket law firm comes into play. This informative article aims to guide buyers involved in business acquisitions or mergers on the importance of due diligence and how they stand to benefit from the legal process.

Legal Due Diligence Defined

Generally, due diligence refers to the activity, prudence, or level of judgment that a reasonable party is expected to perform under certain circumstances. But from the lens of corporate law, due diligence is the legal investigation carried on by a third party (such as a Phuket lawyer) on behalf of a client or a party intending to complete a business transaction such as a corporate merger or acquisition, and company obligations (potential lawsuits, contracts, warranties, debts, lease agreements etc.)

What is the Purpose of Due Diligence?

In a nutshell, the process of legal due diligence has three purposes that protect the buyer from potential legal risks as highlighted below:

  • To uncover material information that the seller may not have disclosed intentionally or unintentionally. This requires a qualified Phuket law firm that can perform a thorough scrutiny of a business activity/transaction, and provide extensive insight into all applicable legal matters.
  • To verify the legal accuracy and viability of the information provided. This allows the buyer to determine the actual status of the business and the consequences of an agreement.

What does the Buyer Stand to Gain?

By obtaining the services of a lawyer in Phuket, buyers stand to gain a lot from the business transaction (merger or acquisition). So, what’s in it for you as the client? Due diligence allows the buyer to obtain valuable information that may make or break the negotiations. Data on the target’s legal position helps you make informed decisions that guide your steps. What are the legal risks? Is the transaction a cost-effective transaction? These are all questions that are answered by the legal results from your Phuket law firm.


Due diligence is a critical and necessary step in business transactions. Your Phuket lawyer can help you verify the information provided by the seller and even uncover hidden information that is crucial to the deal. Are you planning on completing a business agreement in Phuket? Look for a lawyer with all the necessary tools and know-how of the documents needed and best practices.

Real Estate Lawyer Phuket

When you need the services of Real Estate Lawyer

The real estate property business is rapidly increasing. There are many individuals who are planning to invest in the real estate business or they are ready to buy their property. They planned to have a huge profit from their real estate but instead, they had to deal with a huge loss. The reason is that they tried to manage everything on their own. It turned out to be their biggest mistake because there are many things about real estate that they did not know about.

It is important that you always have a real estate lawyer by your side if you are planning to get into the real estate business. However, there are many individuals who cannot afford to hire a real estate Phuket lawyer in all the situation. It is better that you know when it is important to have a lawyer by your side. Here we have some of the real estate deals in which you have to assure that you work with a lawyer.

When buying a house

It is very important that you work with a real estate Phuket lawyer when you are planning to buy a house. The reason is that there are several legal issues that you will have to deal with. You will have to work on legal documentation that you have to finalize. It can take weeks and even months to finalize all the documents if you will try to do it on your own. However, with the help of a real estate lawyer, you will not have to deal with such issues. The lawyer will assure that all the tasks are managed at the right time, so you can have your house.

To avoid unclear terms and conditions

Whether you are planning to buy a house, commercial property or land, it is very important that you understand all the terms and condition.

  1. There are many individuals who do not understand the terms and conditions due to which they have to deal with some serious issues
  2. Hiring a real estate Phuket lawyer will help you in this condition because they are aware of all the terms and condition.
  3. They will help you understand all the important terms that can affect your investment
  4. It will help you make the right decision.

While finalizing the deal

When you are finalizing the deal of your property, it is important that you take some help from a real estate lawyer. You should know that there might be some clause that will affect the investment. It is better that you consult the lawyer and show him/her the documents of the deal. They will go through all the documents and let you know whether you are making the right decision or not. In this way, you will not have to make any wrong decision that will become the reason for your loss.

Require consultation

Some of the individuals need consultation when it comes to the real estate related decisions. It is either they are planning to invest in a particular property or they are ready to sell one. It is important for them to find out what will happen if they make the required decision. It is important that you consult the real estate lawyer. Understanding the real estate related to the market is more important as compared to knowing how much profit you will generate. Only a real estate Phuket lawyer can give you the insight that you have been looking for.

Real estate investments

There are many individuals who are confused regarding whether they should invest in the real estate property or not. They want some expert advice to assure that they will not make the wrong decision. In this situation, it is a better option that you visit a Phuket law firm. They will help you understand the real estate market properly. The experts will let you know everything about the market and how you can generate a better profit. A real estate lawyer knows the market better than the real estate agent because they are aware of all the legal issues and the ups and downs of the market.

Planning to invest a foreclosed house

We all know the fact that you can get some amazing deals in the foreclosed house. The reason is that owners of the house are ready to sell their best property at any rate because they want to get rid of the mortgage loan. However, what makes this deal shady is the fact that you might pay more than the real value of the house that will make it hard for you to generate the profit afterward. It is important that you consult a lawyer because he/she will let you know whether it is the right decision to invest in the property or not.

Dealing with legal issues

There are many individuals who are dealing with the legal issues related to the property. It might be because they have invested in the property using the illegal method, someone is trying to take control of their property or other issues. The lawyers from HWAL Phuket law firm can provide you the best services that you have been looking for. Our experts will conduct a complete research on the issue that you are dealing with and they will assure to develop a case that will help you out of this situation. Without the lawyer, there are chances that you will lose the property as well as you might get punished for the mistakes that you have made.

Make sure that you make the right decisions during the selection of the lawyer. HWAL Phuket law firm has been working in the industry for many years. We have the highly trained and expert lawyers who have been dealing with the real estate related issues for many years and would assure to give you the best advice related to your case. Make sure that you hire a HWAL Phuket lawyer and invest in the best property.

Condo rental

Is Making Money from my Condo Allowed?

The condominium is one of the best investment for any foreigner in Thailand. It’s the best the form of real estate that expats and foreign retirees can put their investment into, as according to the laws of Thailand. The 1979 condo Act of Thailand lays out the rules for foreign ownership of condo units in the country.

just in case that you do not consider, click here to refresh your information on what the law says approximately overseas condo ownership.

Condominiums can have outstanding Returns for You

As with every investment, your purchase of a condo unit can and need to give you excellent returns. it is able to feature more than just a place for you and your own family to stay in. let’s take, as an instance, which you’re a businessman who has to often go to Thailand each year on official matters. You stay 30 days at a time, and then you move back to your home country to manage your business there. What takes place when you are long gone and there’s no one living within the unit?

Some people absolutely buy their condominium units as a preparation for their eventual move to Thailand in the future. even though it is still years away, some people do purchase condos already in advance. They then just make use of the condo as a method to make some money to at least recoup some of their investment in the unit.

You, too, can try this. if you have purchased a apartment unit which you depart within the care of a neighborhood Thai that has your self assurance, you ought to begin thinking about the way you, and probable your caretaker, could make cash out of that. the answer: sublease the condo unit.

Because Thailand is such a lovely location, you may find your friends trying to go over to the country however they don’t have a place to stay. temporarily renting out your condominium unit to them is a good idea – you can work on cheap costs so that they’d want to pick staying at your condominium as opposed to going to a luxurious hotel and spend a whole lot of cash on astronomical accommodation prices. it’s far perfectly legal, because you are the proprietor of the condominium unit.

In the event that you are engaged in a long-term lease on the condo unit, but you aren’t staying there completely for now, you can negotiate a clause within the contract to allow for subleasing. that is the most effective way that you could legally rent out the condominium to your friends who are coming over to Thailand for a vacation. it would take a few negotiating and perhaps a few additional terms to your agreement, however it would absolutely be well worth the attempt for your part.

Real estate is certainly a tremendous investment everybody can make. With a condominium unit in Thailand, you’re establishing lots of doors of opportunities for yourself. It’s extra than just an area to call home in Thailand – it may also be a method to earn residual income.

If you need a Phuket Lawyer for cases like this or setting up business, handle property and real estate or even immigration cases, don’t hesitate to contact us! We will be glad to review your case and provide solutions!

Condo or house

What to Choose? Condo or House & Lot?

In case you’re a Thai national, there isn’t a whole lot to consider whilst comparing those two kinds of real estate in Thailand. Locals can effortlessly buy these if they’re financially capable. For foreigners, however, it’s far a different story. One needs to think in wisely about issues when it comes to choosing between those two real estate properties in Thailand.

Here at HWAL Legal We are able to differentiate the advantages and the disadvantages of purchasing a condo unit and purchasing land or a house-and-lot property in Thailand.

Purchasing a Condo

One of the advantages of buying a condo in Thailand is that it’s far very easy for you, as a foreigner, to accomplish that. Thai regulation allows for foreigners to have a hundred percent ownership of a condominium unit in the country, without having to set up a corporation or business in the country, provided that the allocated percentage of the entire number of units in the condo for foreign ownership has no longer yet been bought out. You will notice in Thai regulation that it does permit foreigners to buy condos inside the country as long as the majority of the residents or unit proprietors in the entire project must be local Thais.

There is one downside to being an proprietor of a Thai condominium unit is that it comes with exorbitant fees. those fees are used to for renovation expenses just like the security in the project as well as the preservation for the elevators, the settling of monthly electric payments and other simple services.

Purchasing a house and lot

Most of the people, foreigners and locals alike, does prefer buying a plot of land or a house-and-lot property. that is because owning your personal space is a lot more advantageous than buying a pre-furnished condo unit. you can pick out the lot location that you want for a lot, and you can design and construct the residence in line with your choices. However, this option is not as easy for foreigners or expatriates in Thailand.

Even if it is inexpensive to buy this type of real estate in Thailand, because it does not include the expenses associated with condominiums, it’s also risky most of the instances for foreigners. it’s far illegal, at this point, for foreigners to own these types of real estate until they do the following:

Marry a local Thai and buy the real estate in his or her name

Only locals can purchase land inside the country. in case you are married to a local Thai, you could achieve this however you have to put the title in her name. It’s not terrible and it does what it is needed, however you cannot put the belongings in your name within the unfortunate occasion that you and your partner might have to get an annulment or divorce.

Own a business

If you’re planning to begin a organization in Thailand, you can purchase real estate by using putting it under the name of the organization. however, this business needs to be owned partially by means of locals as well. you may be the single majority stockholder within the enterprise however there have to be some of locals in your board.

There you go. these are the comparisons that we could make in this blog in phrases of drawbacks and benefits in shopping a condo unit or a lot in Thailand.

Condo rental

Information to avoid getting problems in Buying Condo’s in Thailand

Thailand’s land laws are undeniably restrictive to foreign possession except for condominium properties. The condominium Act of Thailand permits foreigners to purchase a condo property with a prescribed boundaries. however while purchasing a condominium is the very best way for a foreigner to own a property in Thailand, if they’re not cautious, they may fall into traps which they don’t see as coming.

Listed below are some of the traps condo shoppers would possibly fall into unknowingly:

  1. Failure to take into account taxes due for the condo. once in a while, the excitement that is going with a condo purchase could make a purchaser forget about to check the taxes due. In a few cases, customers fail to include this amount of their budget. The condominium taxes are expected to be over 6% of the acquisition fee and this ought to be paid before as the property is transferred and the ownership is registered at the land office.
  2. Failing to take the cost of maintenance and allocate a sinking fund while determining the budget for the condo purchase.
  3. Failing to do due diligence on the condominium property to ensure that the seller has the right to sell the condo. A title search is an extremely vital task that every customer should do.
  4. Failing to make sure that all the desired permits and licenses are complied with in line with government guidelines. that is to keep away from any trouble in the long run and may result in delays, task cancellation or substandard work.
  5. Failing to negotiate with the seller approximately who will be liable for the taxes and ensure that such are manifested inside the contract or settlement. If the provisions of the sale agreement do not specify the duty of tax charge, it’s far likely that the consumer will need to shoulder the tax due for the condo.
  6. Failing to ensure that the sales settlement is properly vetted and reviewed via a certified legal professional in Thailand to ensure that your interests as a client are protected. through asking someone who’s knowledgeable on this form of transaction, you are giving your self the opportunity to be clear and specific at the terms you may compromise with the vendor like charge of the taxes.
  7. Failing to double take a look at the surrounding real estate lots. before signing the sale agreement, it’s far important that the customer double check the surrounding of the property to make sure that there aren’t any obstructed views, or there are no restrictions on the zoning specifications for the condo area.

Through keeping these pitfalls in mind, a buyer can be able to avoid falling into these traps.

Property law

What Is Thailand’s Property Law?

In general, the property laws and regulations of Thailand are patterned after the western nations in as much as the same way that the Thailand Civil Code is primarily based on the mainland European civil law system. Thai property laws are in effect considered western.

Possession of land in Thailand is ruled through the Land Code BE 2497 (1954), the Civil and commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the rules set forth through the Ministry of the interior. The conditions imposed on land ownership for non-Thai nationals are so restrictive that possession isn’t practicably possible at all.

There are, however, several approaches in which a foreign national can make about land ownership without violating the provisions of the property laws of Thailand. There are three ways to get around land ownership in Thailand by way of a non-Thai national:

  • Register a Thai nominee
  • Make and register a limited liability company to own the land
  • Developing long-term rentals with assured rights to renewal for registered ownership under a Thai nominee’s name or under a limited liability company’s name.

Register a Thai Nominee

This option permits for a much faster and simple straightforward processing with out the load of extra costs. And this is why this option has emerged as one of first choice of many expatriates or foreign nationals who are eager to invest in homes in Thailand.

This method is generally suitable wherein an existing long-time period relationship has been set up and in place.

The foreign national need to have established retaining full control and influence over the nominated Thai national. if you are confident about your controlling role over the nominated Thai national, this could be the right choice to fulfill land ownership.

The apparent downside of this selection is the fact that legally, the land is not under your control, since it isn’t under your name. In the event of severing ties with the nominated Thai national for whatever motives, you don’t have any way to resell the land. you can only protect the property in question if a last will and testimony is in place controlling the bequeathing of the property at the death of the Thai nominee. Which means the Thai nominee will sign a last will and testament specifying that the property should be transferred to some other individual who could be your new Thai nominee in case of the first nominee’s demise.

Registration of a limited liability company

This approach has been the famous choice for lots overseas nationals within the past in structuring a way to own land in Thailand. The foreigner need to understand and be aware aboutall the requirements to process and sign up a limited liability company so as for this method to work. this indicates having only 49% ownership by foreign nationals and most people 51% of the shares are held by means of the local Thai nationals. As within the first option, the conditions do not warrant protection on the interests of the overseas nationals.

So it is vital that sure legal documents are made and in place to make certain that you nevertheless hold the control over the property registered underneath the organization’s name.


This technique is frequently ignored and not even taken into consideration by using foreign nationals wanting to own homes in Thailand. The principle of this method is to create a continuously renewable leasehold ownership structure that equates the pertinent advantages of Freehold possession including:

• Security of tenure
• Enjoy the benefits of asset appreciation
• Can make your asset as a gift to whom you choose.
• Property is yours to enjoy till sold or bequeathed.

The regulation is precise on its conditions that non-Thais won’t own the freehold title on the land. it’s far therefore crucial that two or separate contracts are drafted for each property – land and building. ownership of buildings may be legally transferred to the non-Thai national.
like the first two methods, this approach, too, needs essential safeguards to ensure that the foreign national enjoys the advantages of freehold ownership in phrases of control and protection.

The lease settlement should contain the following clauses:

1. Non-Thai must have right of access and abode on the land.
2. in the event that the laws on foreign land possession change within the future, the non-Thai national must have the right to transform the leasehold to freehold ownership.
3. The right to sell and transfer the assets
4. A non-Thai national need to have full and irrevocable power of attorney with respect to the land granted via the nominated Thai national to the non-Thai. In effect the Thai national returns control to the non-Thai.
5. The lease agreement have to have guaranteed extension clauses granting in addition terms up to a most of 90 years earlier than renewing the rent.

Land title Thailand

Four Types of Title Deeds in Thailand

A title deed on a land or property indicates someone’s rights to land (possession in case of a chanote title deed) and registered encumbrances which includes mortgages, leases, and so forth. foreign nationals aren’t allowed to own even a parcel of land and therefore have no right to be named owner of land in Thailand. however, they can be registered as the holder of certain rights like lease, habitation, mortgage, usufruct or superficies, and so on.

There are four distinct kinds of title deed in Thailand used as common evidence of land ownership, ownership rights and other interests on the land and it is important to understand correctly what every title deed covers or means.

Sor Kor Nung (certificates of possession)

This certificate recognizes that the individual is in possession of land but it does not mean that there are any rights associated with the possession. It isn’t transferrable but a person in possession might also transfer the physical ownership to every other individual and that individual need to apply for a brand new certificates of ownership. This is not recommended for foreign investors as they may have no rights to the land or property despite the fact that they paid for the certificates.

Nor Sor 3 Kor (showed certificates of Use)

this is a certificate confirming that the person’s name acting at the certificate has the confirmed right to use the land implying that each one requirements needed for the title deed issuance were complied with and that it is pending with the Land department. Land with a Nor Sor 3 Kor title deed may be sold, leased, used as a loan collateral, etc. and the holder of this certificate cannot leave the land unattended for greater than 12 years.

Nor Sor Sam (certificates of Use)

This differs from Nor Sor 3 Kor in terms of not complying or performing the formalities to certify the right to use. A notice of intent must be published earlier than a transfer can be made and 30 days public notice is required earlier than any change of status over the land can be registered.

It is a secure practice to always ask the legal professional to check the back and front end of the property title deed so that you can see who the current proprietor is; the shape, area and orientation of the property; border to a public property along with a street, ocean or stream; and if the property has endorsements or liens. A title deed should be clean of any preceding obligations or encumbrances. otherwise the transaction have to now not push through.

To be safe, it is continually recommended to seek expert help for plans of acquiring a piece of parcel or for plans of having rights in a piece of land. A financial investment in this form of asset is pretty a venture and there are rules established by the respective government of a chosen country.

Chanote (title Deed)

that is a certificate for land ownership. a person with their name shown at the title deed has the legal right to the land, and might use it as proof to verify the right to government authorities. This identify deed suggests the official government land survey points setting the legal obstacles of the land. this is the most secure type of land title and Thailand’s Land department is aiming at covering all land within the country under this title deed.

Property value

Measuring Real Value of Properties in Phuket

Owning a property, a parcel of land, a condo unit or a residential house requires a complicated web of registration with the Land office, which can be part of the legal services Phuket law firms offer. All ownerships may be legally transferred through a written registration at the local Land office. along with such registration are fees and taxes which are needed to be paid upon registration of the property which is the challenge of change of ownership. fees and taxes include transfer fee, income tax payable as withholding tax, stamp duty or precise business tax or local development tax.The registration process as handled through real estate lawyers in Phuket, calls for that the transfer fee and the seller’s income withholding tax are to be deducted and paid to the authorities upon transfer. those charges and taxes are calculated primarily based on the Land workplace’s valuation of the property.

On the other hand, the stamp duty or specific business tax or local development tax will also be deducted and paid to the authorities upon transfer. each stamp duty and tax are calculated based totally at the official value of the property or the actual transaction cost of the property, whichever is higher.

Consequently, due to the fact the Land office’s appraised cost of the property is one of the key factors used for the calculation of the fee and taxes applicable to and payable upon the registration of possession of immovable assets, you may want to know greater approximately this official value.

For this purpose the official value – an assessed or appraised cost for an immovable property is periodically generated by way of the Valuation Committee pursuant to section 105 of the Land Code or LC. And for the reason that official value turns into the basis for the calculation of the various fees and taxes paid to the authorities upon transfer of ownership of the property, it is crucial to understand how the property’s official value is measured or generated.

Phuket lawyers will need to explain to their clients that pursuant to chapter 2 of the Valuation Committee’s rules for determining the standards and procedures for Valuating Immovable properties for the purposes of Levying fees for the Registration of Rights and Juristic Acts (1992) (and as amended in 1998) issued under the Land Code, the criteria taken into account by using the Valuation Committee in determining the reliable cost of an immovable property are:

  1. Construction Material Costs
  2. Salaries and wages of the construction workers involved within the production of the property
  3. Local Construction Administration Fees
  4. Building Type Purpose.

Official fee for non-condo buildings in each province in Thailand varies. as soon as the professional Values in any particular region or province are announced, they may be applicable to all such buildings no matter the property’s location. The appraised price per square meter of a property in Karon could be the same even for the most undeveloped part of Phuket. In general, the appraised value ought to be re-evaluated every other 4 years.

Land title Thailand

Documents needed for Acquiring Land in Thailand

Thai law has a few exceptions that can allow a foreign national to purchase a piece of land in the country. One of these exceptions is when a person has infused an investment of THB40 million, at the least, into the country’s economy by, among other ways, investing in a business in the Kingdom.

Let us say that somebody, maybe a friend of yours or a business associate, has met the qualifications under Thai law that will allow him or her to purchase land legally under his or her name in Thailand. How does that qualified individual go about legally acquiring real estate in the Kingdom? What does he or she need to prepare?

Requisite Documents to Apply for Land Acquisition as a Foreign National

In order to receive permission from the appropriate government agency, a qualified foreign national will have to prepare the following documents:

  • Documents for identification including, but not limited to, the foreignerís passport, an alien identification card issued by local police agencies, or a certificate of residency if the foreigner is a permanent resident of Thailand.
  • A duly-filled Alien 4 form
  • Documents that attest to the foreignerís investment in the country, including certificates of stock, bonds, or mutual funds.
  • Letters of confirmation from the Ministry of Defense and the Provincial Officer as to the status of the real estate that the foreigner is interested in acquiring.
  • These documents must then be submitted for the application process to commence. The applicant will then receive ample notification from the government should the application be approved.
  • Limitations Imposed on Foreigners Who Own Land in Thailand
  • Once a foreigner receives government approval to acquire real estate in Thailand, he or she must put the property to use right away.

Thai law requires these individuals to be able to utilize their new property in a residential capacity within the next two years immediately after the approval and registration of the acquisition. Apparently, these foreigners are disallowed from using the land in a commercial application.

They also need to continue their investment within the next five years. This rule is to prevent people from putting in the requisite amount as an investment in Thai financial instruments just to gain approval for land acquisition, and then withdrawing it afterwards. Should a withdrawal be imminent, investors are required to notify the government within the next 60 days after pulling back on the investment.

Thai law is very clear and specific about what it expects from foreign investors, and what perks they can give to those that make a significant investment in the local economy. However, youíd still need the help of a qualified legal advisor to save you from possible legal hurdles when it comes to investing in Thailand. For instance, the legal advisor should be fluent both in English and Thai to make sure that there are no misunderstandings along the way.

Feel free to contact HWAL if you have any inquiries about investing, property management and real estate acquisition in Thailand.