The Escrow Act B.E. 2551 (2008) was the first step towards investment safeguards implimented by the Thai government. Since then new requirements have been added to the Act for further safeguards.
In terms of the Escrow Act B.E. 2551 (2008) a land official is not allowed to transfer a property that is under escrow agreement. The officials at the Land Office must first obtain permission from the agent or the escrow to transfer the land. The new rules in Thailand make the Act even more stricter. These are the highlights of the amendments. Speak to a property attorney in Chiang Mai for more information.
- The escrow agent must be registered.
- Currently only large financial institutions are allowed to hold an Escrow Business Licence;
- When called to do so the agent must provide the agreement and an Escrow Business Licence;
- The agent must have proof of ownership of the land in question.
The Land Office will then note against the title of the property that the property in question is under escrow. This new procedures make fraud almost impossible as not only are Escrow Business Licences limited but there is an added advantage that the Land Office is compelled to obtain written approval from the escrow agent before the land or property can be transferred. The very same goes with a lease agreement or a mortgage bond registration against the property.
If you need to talk about property protection and escrow agreements in Thailand then speak to our attorneys in Chiang Mai or any of our offices in Thailand about the possibility of setting up an escrow to protect your property in Thailand. Speak to us today about escrows before your wife decides to mortgage your property without permission.