Thai Law Insights

Significant Roles of Property Valuers in Modern Legal Transaction-Some Suggestions of a Practitioner

Thanaphon Liwsakul

Current Situation-Lack of Licensed Property Valuers

Property valuation may not be familiar to Thai business persons until they have a dispute arising out of value of the property for certain transaction.

Unlike in other countries, property valuation is generally in use for certain transaction. In Thailand, the Thai Valuers Association ("TVA") in association with the Valuers Association of Thailand ("VAT") are the professional associations in charge of issuance of property valuation license. But in fact there is a few professional property valuers who can provide property valuation service for the time being.

Lack of Licensed Property Valuers may result in multi-national property valuation companies or foreign experts in the field to come into Thailand to provide property valuation services for many major projects, through local subsidiaries in Thailand, to avoid the Alien Business Operations Act of 1999 or, alien business law provisions which require that all service businesses including property valuation, are subject to the Act.

If foreign experts provide property valuation services, this may result in lost opportunities for Thai national experts to take part in the significant projects at both domestic and international levels.

Significant Importance-Property Valuation

Property valuers ("PV") may be required to take part in many construction projects, insurance, decreased estate, accounting & balance sheet requirements, development of feasibility analyses by working with other professionals including legal counsel. A PV may engage in international sale of goods whereby the PV may be required to ascertain or examine the goods at the port of shipment for buyers or correspondent banks in different territories. Many PVs are registered as arbitrator in the lists of many local and international arbitration institutes, to decide certain legal issues requiring property valuation methodology.

Remark & Suggestion

It is time for the professional associations involved and education institutions in Thailand to urge the Government to reform policies on property valuation specialists and to help develop the field so that local experts can compete with multi-national companies. There is urgency as Thai property valuation experts can expect global competition when this service sector under GATS of the World Trade Organization or, WTO, which includes property valuation, becomes open to all.