Other issues of Legal Matters:
Jun-Aug 08 |
Mar-May 08 |
Dec 07-Feb 08 |
Sep-Nov 07 |
June-Aug 07 |
Mar-May 07 |
Dec 06-Feb 07 |
Sept-Nov 06 |
June-Aug 06 |
Mar-May 06 |
Dec 05-Feb 06 |
Sep-Nov 05 |
June-Aug 05 |
Mar-May 05 |
Dec 04-Feb 05
Legal Matters: Article #3 (June - August 2005)
Issues for the Buyer – Benefits and Risks of buying property
with a unique or distinguishing feature (golf courses, marinas,
hotel residences)
“What are the general legal implications of selecting a ‘unique’ individual property or property in a unique estate?”
Developers should have taken some time preparing their land and concept when it contains or is part of a unique geographical or artificial feature. However, this may mean that the title is more complicated than usual; or a marina may need to be checked for conceptual and structural integrity by a marine engineer; or the terms of a golf membership and its application to owner/members should be carefully scrutinised in a golf course development. Developments on beaches, near major public roads or in the middle of a jungle or forested area should also be monitored to ensure that the splitting of the original land title plots is based on legal private land and not illegal or public land.
(Desmond Hughes, Partner)
“What will the effect on a title search be?”
The nature of the property may mean that several land plots have been consolidated,
sub-divided and re-consolidated to form the land plots that are now for sale. Buyers should be prepared, if they want a comprehensive report, to wait maybe a little longer for the full results of the search. Such developments often include or are near a strip of public land and it is important to verify land boundaries and ensure that the title has been issued properly.
(Kris Limcharoen, Partner)
“What additional contractual protection should my legal advisors seek
on my behalf?”
This depends on the development but essentially as strong as is possible appropriate to the circumstances and according to the motivation for purchase. In a marina development where a property has a mooring station an experienced property lawyer should be able to identify the potential pitfalls for a buyer and seek to protect clients accordingly. Defects liability and maintenance of mooring and marine based structures would involve more detail than a stand-alone residence. In a golf course, the emphasis in the contracts may focus on the rights attached to the owner/golfer: do the membership rights attach exclusively to the property or are they personal to the buyer and transferable? Are the terms of membership frozen for a fixed period of time or subject to change of rates and terms immediately afterpurchase of the golf course property?
(Desmond Hughes, Partner)
“Do these unique contractual protections appear in residential developments without clearly identifiable unique features such as marinas and golf courses?”
Yes. For example, in a condominium project there may be lots of common features but also extensive unique features to each condominium unit. One unit may be designed to have a swimming pool and one unit may instead have a large landscaped garden. How this is dealt with in respect of common responsibility of the condominium owners and the fees they must bear as a collective, and the fees they might also have to bear as individuals in respect of common area outside of the condominium unit, should be dealt with as precisely as possible in the contracts.
(Kris Limcharoen, Partner)
“What is your general advice to buyers seeking something a little different or a particular and unique property?”
Developers make the effort to produce a development catering to a particular market demand or industry – golf, sailing, hotel apartment investors and that unique product is the principal reason for the purchase. Therefore, care and attention should be applied by the buyer and its adviser to all the normal elements of the deal but also with due regard and focus on the peculiar elements. If you want to own a property with a mooring station which has a lengthy service and maintenance guarantee – make sure it is included in the contract and you know which company is backing the guarantee. If you want to pay the same golfing rates for a fixed period of 3 years, similarly – the seller must agree before you incur the costs of a title search and instructing advisers.
(Desmond Hughes, Partner)
This article is the third in a series of articles for Exclusive Homes and was co-written by Desmond Hughes (Partner) and Kris Limcharoen (Partner) based in the Phuket, and Bangkok offices of Belmont Limcharoen respectively and now with a new office in Koh Samui.
Information supplied by:
Belmont Limcharoen (Phuket)
4/1 Prabaramee Rd., Patong, Kathu, Phuket 83150
Tel: +66 (0) 7634 2882-4 Fax: +66 (0) 7634 2885
Email: desmond@belmontlimcharoen.com
Belmont Limcharoen Company Limited
39 th Fl., 3904 A United Center Building.
323 Silom Rd., Bangrak, Bangkok 10500
Tel: +66 (0) 2635 5071-3 Fax: +66 (0) 2635 5074
Email: kris@belmontlimcharoen.com
Belmont Limcharoen (Samui) Co., Ltd
23/30 Moo4 Bophut, Koh Samui, Suratthani 84320
Tel: +66 (0) 7724 6185-7 Fax: +66 (0) 7724 6188
Email: samui@belmontlimcharoen.com
www.belmontlimcharoen.com
