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.
In the current economic environment, businesses are trying to cut costs from all possible ends. Strict IT budgets and limited resources are making it even more difficult to get things done but still it is important to adhere to the same levels of service and functionality. Keeping the quality of deliverables the same in spite of the reduced budget makes it important to extract the best value for every penny that is spend.
Offshore outsourcing is a powerful business strategy to achieve quality results at lower costs. But there can be further savings as well. You can negotiate with your offshore service provider for the best deals and make sure that you are getting a good deal. The best time to get a great deal from your service provider is the end of the year or the end of the quarter. Here are some tips to negotiate with the service provider and get the best prices for the IT processes.
Make the Right People Talk
Negotiation is a skill. However, more than convincing skills, what is needed is in depth knowledge of the project details. A successful negotiation process is characterized by the ability to negotiate a contract as well as sound grasp of the technological needs of the particular project. This is why it is important to designate the right people to talk and negotiate with the service provider because they will understand the intricate details of the technology and would know what to talk to the service provider. Different kind of projects require different kind of negotiation skills. Therefore, choose a person who has good experience of the concerned process and know what the needs and requirements of the project is. The person should have a combination of technical knowledge about the project as well as good convincing skills.
Keep an Upper Hand in the Dealings
Be seeked rather than seek! In an outsourcing project discussion, make sure you carry yourself thus that the service providers become eager to do business with you. Even though you may be more interested in hiring the services of the particular provider, don't ever let than show. Give them subtle hints that you have more options available to check out and they are not the only ones. This would make them more eager to please you and secure the contract. However, avoid going overboard with this. If the service provider feels that you are not much interested, they would not care to pamper you more. The key is to maintain a good balance and surround an air of mystery during the negotiation period.
Talk to the Account Manager
The service provider would be more eager to do business with you when they know their subsequent profit margins. The sales people will elucidate all the possible reasons and terms and conditions to secure the deal but they would not go beyond their limits. The account manager can evaluate the financial aspects of the project and offer a measure of how profitable the venture is going to be. This will drive the service providers to do business with you.
Both Gregory Smyth & Maneet Puri are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.