Protect Your Company With Escrow Service Providers In Thailand
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Gregory Smyth
Bangkok Hospital - 36 years of advanced medical technology and expertise, complemented with Thai hospitality and compassionate care. Includes the world-renowned Bangkok Heart Hospital and specializing in oncology, neurology and orthopedics. Some of the worlds most advanced minimally invasive diagnostics and treatment procedures are in place By Gregory Smyth
Published on 09/30/2008
With the advent of the Internet as a means of doing business, more and more people become familiar with the escrow method of making and receiving payments. In Thailand, a new escrow business law regarding real estate has recently been enacted - we get a law firm in Thailand's perspective on how the escrow business laws will affect corporate life.
Escrow has long been a facet of business transactions, especially those that have high value or high risk. Escrow services are engaged when a neutral third party is used to hold cash or property, pending the fulfilment of contractual obligations by the receiving party. This removes the risk of a party either taking payment, but not providing a service or goods, or the risk of a provider not being paid for their service. Thai law companies are now advocating that many types of transactions, not only real estate transactions, are conducted through escrow facilities. Recognizing the importance of the concept, there are also new Thailand laws on escrow, which came into effect in the middle of 2008.
The escrow business laws in Thailand are specifically geared toward real estate, however you don't need to be in the real estate industry to benefit from the new laws. Any firm needs a business premises, and many have investment properties also. Legal services in Thailand have always advised clients that escrow is the preferred method of completing real estate transactions, and the law now agrees.
It states that escrow service providers can service companies in the areas of reciprocal contracts, contracts for purchase of homes, land and condominiums. The service provider is responsible for overseeing that property purchase payments are completed on schedule, and as specified by the escrow conditions.
If conditions of the escrow contract cannot be met , the funds held will not be disbursed to the seller and can be given back to the buying party. If there is a disagreement as to whether contract conditions have been fulfilled, a business legal service must judge the contract according to Thailand law to determine who the funds belong to.
The details of escrow business law in Thailand include the fact that the escrow provider must be a financial institution, a financial company or a commercial bank. This helps prevent any collaboration between two parties that is not known to the other. The service provider must have obtained permission from the Ministry of Finance to provide escrow services, giving both buyer and seller further protection.
In addition, if either the buyer or seller of the real estate has any direct or indirect connections to the escrow service providers, although they may be legitimate and not related to the deal, under Thailand law that service provider cannot be involved.
To help protect both parties, law firms in Thailand advise that escrow providers must keep their personal assets separate from the monies held in trust. Transfer of ownership of the property is not allowed until the Land Department has been provided with a written notice authorizing it by the escrow provider. If both parties cannot agree, under Thai law there can be no transfer of funds.
You can see that Thailand's law regarding escrow transactions is both succinct and comprehensive - and serves to protect both the buyer and seller in real estate transactions. Business legal services highly recommend that you take advantage of these Thai laws which give protection to both parties.
The escrow business laws in Thailand are specifically geared toward real estate, however you don't need to be in the real estate industry to benefit from the new laws. Any firm needs a business premises, and many have investment properties also. Legal services in Thailand have always advised clients that escrow is the preferred method of completing real estate transactions, and the law now agrees.
It states that escrow service providers can service companies in the areas of reciprocal contracts, contracts for purchase of homes, land and condominiums. The service provider is responsible for overseeing that property purchase payments are completed on schedule, and as specified by the escrow conditions.
If conditions of the escrow contract cannot be met , the funds held will not be disbursed to the seller and can be given back to the buying party. If there is a disagreement as to whether contract conditions have been fulfilled, a business legal service must judge the contract according to Thailand law to determine who the funds belong to.
The details of escrow business law in Thailand include the fact that the escrow provider must be a financial institution, a financial company or a commercial bank. This helps prevent any collaboration between two parties that is not known to the other. The service provider must have obtained permission from the Ministry of Finance to provide escrow services, giving both buyer and seller further protection.
In addition, if either the buyer or seller of the real estate has any direct or indirect connections to the escrow service providers, although they may be legitimate and not related to the deal, under Thailand law that service provider cannot be involved.
To help protect both parties, law firms in Thailand advise that escrow providers must keep their personal assets separate from the monies held in trust. Transfer of ownership of the property is not allowed until the Land Department has been provided with a written notice authorizing it by the escrow provider. If both parties cannot agree, under Thai law there can be no transfer of funds.
You can see that Thailand's law regarding escrow transactions is both succinct and comprehensive - and serves to protect both the buyer and seller in real estate transactions. Business legal services highly recommend that you take advantage of these Thai laws which give protection to both parties.