The Role of Lawyers and Legal Due Diligence
In the world of real estate, lawyers play a crucial role that often remains hidden behind the scenes. Imagine buying your home or investing in a property. It's not only about location or square footage. Lawyers and legal due diligence is the sturdy foundation of a magnificent building. They ensure your real estate transactions stand strong. In this blog post, we'll unravel the mystery behind their vital role, making it easy for you to understand. Whether you're a seasoned real estate enthusiast or you're starting your journey. So, let's dive into the world of real estate law and discover how it shapes your property dreams into reality.
Responsibilities of Real Estate Lawyers
Real estate lawyers help handle transactions and will always be present when signing documents with their clients. It's a lawyer's responsibility to ensure an ownership transfer is legal and in the best interests of the client. Lawyers help review documents relating to sales and purchase agreement, title documents, mortgage documents, and transfer documents.
In case of property disputes, lawyers will help represent their clients should the situation wind up in the courtroom. Lawyers will then get facts from both sides of the dispute and bring the dispute to a resolution.
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Due Diligence in Real Estate
Due Diligence in real estate verifies everything about the acquisition. Steps include researching and analyzing the company, organization, or individual. This helps prepare for a business transaction or investment. It also helps identity and prevent potential risks and liabilities.
Why Due Diligence Matters in Thai Real Estate
Any real estate investment will involve a lot of money. But, there are also risks of scammers or sellers and developers taking advantage of new investors. Thus, investors and buyers should proceed with caution before finalizing any transactions. Failure to conduct due diligence could result in regretful consequences such as serious financial and legal distress for the buyer. So, it's important for the buyer or investor to conduct due diligence before closing deals as sellers will not hold responsibilities for issues they did not discover.
Important Factors to Consider in Carrying out Due Diligence in Real Estate
- Make sure the seller holds the property under a true ownership title. Thus, land descriptions in any title deed must match the Land Department's records. It's also important to prove that the title deed is correct and legal.
- Be mindful of burdens on the property. Remember to review the Register of Records on the back of the title deed.
- Determine who owns the title to the property and may have the right to sell the property.
- Stay mindful of any pending or possible legal action involving the property.
- Ensure the developer has all permits and legal documents for a project that isn't built yet.
- You might need to correct certain sales contract details before signing off.
- Know the details and status of the developer as well as their credibility and amount of registered share capital.
- Understand each party's rights and obligations. This includes who pays the taxes and fees, deposit and balance payment dates, project completion waiting time, and possible remedies in case of completion delays.
- Enlist the help of lawyers to help you review the contract drafted by the seller. Lawyers will help verify that the contract contains proper terms and conditions. Make sure the contract does not contain any terms regarding hidden costs or drawbacks. The lawyer can also negotiate and discuss with the seller on your behalf on any changes until both parties' mutual agreement and the signing of the final contract.
How long is the Due Diligence Process?
The duration of the due diligence process depends on the scenario. Due to the research, it's a good idea to set aside some time to ensure all the topics are covered. Lawyers or consultants will help assess and determine the timeframe for the due diligence process.
Bottom Line
In the grand tapestry of real estate, lawyers and legal due diligence emerge as unsung heroes. They work to protect your interests and ensure that the path to property ownership is secure. Meanwhile, legal due diligence uncovers hidden issues and ensuring that the property you desire is a gem worth possessing. So, remember, when embarking on your real estate journey, these two pillars, lawyers and legal due diligence, are your allies, ensuring that your investment flourishes and your dreams find a solid foundation in the world of real estate.
Looking for a hassle-free process in searching for your dream home? Get in touch with us today and our property consultant team will get back to you as soon as possible.
