Purchasing or leasing a land or building in Thailand involves many factors, the first step you must take before committing into an agreement with the landowner is Due Diligence on such land. There are a number of considerations in investigations and review to confirm facts or details under the land, some of these are included:
Simith Legal provides the service above with a due diligence report for you including documents related to the land. Due diligence has a significant effect on land purchase decisions. If the results appear that the land is too risky to purchase. It can help protect your rights and investments. Whether it’s for living or business.
Getting a contract reviewed is important because all of your decisions are made through a contract. Contracts should always be handled correctly to prevent yourself from having legal problems. This means every single contract drafted and negotiated needs to be reviewed before it gets signed.
Simith Legal makes sure It prevents both parties from misunderstanding what they are signing. All terms need to be clear, and your need must be included as well as the terms and conditions within the contract are legal and lawful. It prevents or at least minimizes future legal problems.
Contract review is basically a four-step process. These steps include:
First of all, the contract must be created upon the details standard for a contract.
By reviewing your contract, We will make sure it matches your needs. Plus, We will help you clarify your obligations under the contract.
Also, we will make sure the contract accurately reflects your understanding of the terms of the contract, analyzes the benefits and risks, and your interests are protected to avoid potential problems down the line.
Negotiating to draft a contract is very important when purchasing or leasing land or houses. To satisfy both parties and to ensure that the opportunity to purchase will not slip through your hands also ensure that you purchase or lease it under fair conditions. Plus, very few contract drafting are completed within the first time. Negotiating for finalizing the last terms and conditions is essential before the contract is signed by both parties.
Finally, once every party is happy and the terms and conditions are crystal clear, you sign the contract. Sticking to this four-step plan is the key to preventing yourself from signing a contract that isn’t in your best interest.
Once you complete the due diligence, reviewing and singing contracts then you are good to go with the land transfer process.
The land transfer might be complicated if it is transfer to a company or the landowner is company there are many required documents to transfer the land and complete the land sale-purchase registration at the land office.
First of all, you will have to transfer the land at the land office branch where the land is located. It takes time to complete it since the land officer have to examine required documents, we can assist you at the land office with the power of attorney to make sure your right and investments are protected.
Secondly, you will have to pay for taxes and transfer fees. Generally, in addition to the sale price, both parties will be liable for the Transfer fee and the remaining types of taxes in. However, it can always be negotiated between both parties how the total amount of payable tax and duty is rationed among them. We would say how you and the seller would pay as follows:
Note: Not including other expenses such as request fees, witness fees, power of attorney (in case of authorization)
How much of these taxes will be paid by the seller and how much will be paid by you, the buyer, should be negotiated before going to the land office and written into the sales contract of the land department form.
Once you complete the due diligence, reviewing and signing contracts. By law If the lease term is longer than 3 years, you must register the lease agreement at the land office branch where the land is located at. In addition to the rental price, you have to pay registration fees and taxes which are generally paid half-half by each party as follows:
Simith Legal provides the service above with a due diligence report for you including documents related to the land. Due diligence has a significant effect on land purchase decisions. If the results appear that the land is too risky to purchase. It can help protect your rights and investments. Whether it’s for living or business.