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Property Valuation for Legal Cases in Thailand | PROSPEC Appraisal

PROPERTY VALUATION FOR LEGAL CASES When “Property” Becomes Part of a Legal Case Information relating to a property is not only its “value”. It also covers the property data and factors that may be material to the issues under consideration in a case. Discuss a Valuation Approach See Related Case Types Register for the Seminar | Property Valuation for Expert Witness Work (conducted in Thai) Services are provided in accordance with professional principles, valuation standards and applicable regulations. ⚖ Property information supporting lawyers, law firms and their clients MORE THAN VALUE It is not only about asking “What is this property worth?” In a case involving property, value alone may be only part of the information required. Acquisition history, possession, use, physical condition and related factors may all support the consideration of the facts of a case. A valuer is a law firm’s specialist in “property information” Working alongside legal counsel to define an appropriate purpose and scope of valuation, within professional principles and applicable regulations. PROPERTY INFORMATION Property information beyond the “appraised price” A valuation can examine the property information relevant to the purpose and scope of the engagement. ฿ Property Value Analysis and assessment of property value as at a defined date and for a defined purpose ⌂ Characteristics and Condition Information on the type, characteristics, condition and use of the property ◈ Market Data Analysis of market data and comparable properties, as appropriate to the asset type ⌑ Supporting Documentation Review of relevant documents and data within the scope of the engagement, compiled into a background history of the property for use in a case ▣ Methodology and Criteria Applying valuation methods suited to the asset type and the purpose of the engagement § Structured Reporting Presenting data and an opinion of value within the scope and conditions of the engagement LEGAL CASES Cases That May Involve Property Valuation Each valuation is considered according to the facts, purpose and scope of the individual engagement. CASE 01 Inheritance and Estate Cases Property value information supporting the consideration and administration of estate assets CASE 02 Business Partnership Disputes Valuation of assets connected to a business, according to the purpose of the engagement CASE 03 Construction-Related Cases Review of property data, condition of works and related factors CASE 04 Divorce and Matrimonial Property Property value information supporting the consideration of assets held by the parties CASE 05 Ownership and Property Disputes Information on characteristics, use, condition and value of the property, aligned to the issues in dispute CASE 06 Enforcement and Public Auction Property value information supporting seizure, attachment, and the setting or challenging of auction reserve prices OUR APPROACH We do not start from “price”. We start from “purpose” A working approach that keeps the scope of valuation clear and appropriate to the engagement 01 Understand the purpose Understand the type of engagement and the property issues involved 02 Define the scope Consider the asset type, the data required and the necessary scope 03 Analyse to professional standards Inspect, gather and analyse information in line with applicable criteria 04 Prepare the report Present the data and the opinion of value within the scope of the engagement PROFESSIONAL PARTNERSHIP Lawyer + Valuer Working together Each profession works within its own area of expertise LEGAL PROFESSIONAL Lawyer Analyses the issues and points of law Considers the facts of the case Conducts the legal process Identifies the issues requiring supporting information APPRAISAL PROFESSIONAL Valuer Verifies and analyses property information Inspects and assesses the condition of the property Analyses market data and comparable properties Prepares an opinion of value to professional standards PROFESSIONAL EXPERTISE When a case involves property issues requiring specialist expertise PROSPEC has a team of valuers and property specialists with experience across a wide range of asset types, able to define a scope of work suited to the purpose and the property issues of each individual matter. Where an engagement involves explaining data or a valuation opinion, this can be carried out within the agreed scope of work and applicable criteria. PROFESSIONAL STANDARD Independence and professional standards ⚖ Work is carried out under professional principles and applicable regulations PROSPEC’s property valuation services place emphasis on independence, impartiality, transparency and professional standards. Reports are prepared according to the purpose, scope, assumptions and conditions of the engagement, together with the rules and requirements of the relevant regulatory bodies. A valuation report is a professional opinion on property value. It is not legal advice or a legal opinion, and it cannot guarantee the outcome of a case or the decision of a court. FAQ Frequently Asked Questions What is property valuation for legal cases? It is the assessment of a property’s value and the preparation of property data or an opinion, according to the purpose and scope of the engagement, for use in matters connected with a case. It is not legal advice or a legal opinion. Can a valuer act as an expert witness in court? Providing information or an opinion within a court process depends on the facts of each matter and the procedure involved. A valuer’s opinion remains within the boundaries of their expertise and the valuation profession. Which types of cases can a property valuation report support? These may include inheritance cases, business partnership or shareholder disputes, construction-related cases, divorce cases, ownership and property disputes, and enforcement and public auction work, depending on the facts and purpose of each engagement. Can a valuation report replace legal advice? No. A valuation report is professional property data and opinion. It is not legal advice or a legal opinion. When should a valuer be consulted? If a case involves property issues, speaking with a valuer at an early stage helps define the purpose, the scope and the information required for the valuation. Does your case involve “property” in Thailand? Talk to PROSPEC’s valuation team to define the purpose, scope and valuation approach suited to your matter. Discuss a Valuation Approach Services depend on the assessment of scope, the suitability of the

General property valuation report

General property valuation report Table of Contents for Property Valuation Report (Applicable for Land and Building Properties) The valuation report includes: Executive Summary Certified and signed by the principal valuer and an authorized company director 1. Purpose of Valuation 1.1 Assignment and Engagement Details 1.2 Objective of the Valuation 1.3 Date of Inspection and Valuation 1.4 Description of the Property 2. Property Location 2.1 Property Address and Location 2.2 Accessibility and Transportation 2.3 Legal Right of Access 2.4 Surrounding Area and Environmental Conditions 3. Land Details 3.1 Land Title Deeds 3.2 Government Appraised Land Value 3.3 Land Survey Information 3.4 Physical Characteristics of the Land 3.5 Public Utilities and Infrastructure 4. Building and Improvement Details 4.1 List of Buildings and Improvements 4.2 Building Survey Information 4.3 Building Specifications and Descriptions 5. Legal Considerations 5.1 City Planning and Zoning Regulations 5.2 Building Control Laws 5.3 Expropriation or Acquisition 5.4 Encumbrances or Restrictions 5.5 Other Applicable Legal Issues 5.6 Government Development Projects (if any) 6. Property Analysis 6.1 Strengths and Weaknesses of the Property 6.2 Highest and Best Use Analysis 6.3 Comments and Special Observations (if any) 7. Property Valuation 7.1 Valuation Principles and Criteria 7.2 Assumptions and Limiting Conditions 7.3 Special or Additional Assumptions 7.4 Valuation Approaches and Methods Applied 7.5 Final Opinion of Value Appendices A. Valuation Methodology B. General Valuation Principles C. General Assumptions and Limiting Conditions D. Property Location Map E. Land Plot Layout F. Property Photographs G. Copies of Title Deeds H. Building Layout Plans

Prospec Appraisal Chiang Mai District office

Prospec Appraisal Chiang Mai district office Prospec Appraisal has service centers nationwide. Today we will get to know our “Chiang Mai” district office, one of our first offices. Office location 155 Moo 7, Chaiyasathan Sub-district, Saraphi District, Chiang Mai Province Contact number 053-240-216 Current number of employees in the office 15 people (full time) Provide services for 8 provinces in the northern region of 8 Thailand – Chiang Mai – Lamphun – Mae Hong Son – Chiang Rai – Phayao – Lampang – Phrae – Nan How to find us on a map ? PROSPEC maps Who are our clients ? We provide services to all banks, corporations and general walk-in customers. Why choose Prospec Appraisal for valuation ? We produce quality work quickly and strive to maintain and improve our performance. We also aim to develop a real estate database and professional career in property appraisal. Prospec is working on applying technology to modernize our #propertyvaluation with the vision that “our company will adhere to the code of conduct according to professional standards, provide fast and quality service for a fair and reasonable service fee.”

Counting down to PDPA

Even if it’s postponed for another year, it’s a good opportunity to be prepared. Always one step ahead! Prospec Appraisal’s management organized a live company seminar regarding the privacy policy, in which all employees from every branch are required to participate in preparation for the appropriate handling and keeping of our customer’s data through the data operating system. This is in line with the guidelines for security of information policy. Our employees are well aware of this personal data protection act, in adapting to the digital world to the fullest.

Rural road connecting the National Highway no. 3256 and 200-years Rattanakosin Road.

Fact Project name : Rural road connecting the National Highway no. 3256 and 200-years Rattanakosin Road as announced in the royal decree dated 20 August 2020, valid for 5 years. Project detail : The total distance is approximately 16 kilometers. The starting point of the project is on Wat King Kaew Road, cutting through Suvarnabhumi, Bangna-Trad Road. The project will run parallel to Bangna Trad Road along the way. Then the direction is leading slightly to the southeast, intersecting with Wat Si Wari Noi Road and several important secondary roads, such as Ruam Pattana Roads, and continue to meet with 200 years Rattanakosin Road 200, with an average road width of 60-meter. Project is located in Racha Thewa and Bang Bo Sub-districts, Bang Sao Thong and Bang Bo District, Samut Prakan Province. The narrowest part is 200 meters and the widest part of 1,500 meters. The project is to be surveyed by personnel during on-site inspection. Project responsible person : The project is led by the Department of Rural Roads. The exploration of land and real estate located within the expropriated land boundary where the project is to be built is currently underway until 15 February 2021 (total 180 days). The project construction is scheduled to be complete within 5 years. Project analysis : Primary objective : To reduce traffic congestion on Bangna-Bangpakong Road at the exit to Suvarnabhumi Airport, by opening an additional secondary road which leads to the airport. With an improved traffic and other transportation mobility, land in this area will benefit and enable full utilization. Effect on business sectors : Industrial – Positively Positively affected due to the main objective of this project is to increase convenience in terms of traffic and transport mobility. Expansion of the 2 industrial estates in this area; Bangplee Industrial Estate and Wellgrow Industrial Estate is highly anticipated. Residential – Directly affected, new residential projects tend to be launched for both single house or condominium projects. Traffic mobility enables more households to move further out of city areas into the suburbs, which are yellow and orange color zonings where development of projects are allowed. Commercial – directly affected due to the increase in housing. New department stores are likely to pop up while existing markets and restaurants can expect better economic growth. Real estate investment perspective : The project brings about land investment opportunities waiting for investors to develop. The new road serves as an accessible route for many plots of land that used to be blind land or landlocked. Hence, these lands suddenly become appealing for investment. Investors may choose to purchase adjacent plots in order to gain a big piece of land with huge potential for development. Investors can simply hold and sell them for profit in the future or look for development companies with financial capability of turning land into estate. According to the city planning regulations, the land surrounding the area is mostly assigned with green zoning, meaning land for rural and agricultural purposes. This followed with yellow and orange zoning, less dense residential type and moderately dense residential type respectively. There is also a potential of more blue and purple zoning which are for government agencies and environment-friendly industrial warehouses respectively. The red commercial area will stand to benefit from the more residential surrounding areas. Note that some color zoning may change after the completion of the project. From the land price survey, Invest:MaN presents to you information on land prices that have been proposed in the market, divided into 4 groups, briefly as follows: Large undeveloped plot of land suitable for agricultural development. The selling price starts from 8,500,000 to 14,000,000 baht per rai (land adjacent to main road) or 21,250 to 35,000 baht per square wa. The offering prices differ since the starting price is for land located in industrial purple zoning far from the city area, while the land with highest price located near the main road in the yellow zoning, a less dense residential alternates with the agricultural area. The selling price for sub-plot of land in a development project ranging from 30,000 to 95,000 baht per square wa. The prices differ due to the high prices for lands located in the commercial area compared to less expensive lands located further from the city deep into rural areas with orange zoning, a less dense housing area. Overall, land prices in the development project are still in line with today’s prices for undeveloped lands. Price movement may spin in the next period. The selling prices for land within or surrounding Wellgro and Bangplee industrial estates; prices starting from 18,000 to 25,000 baht per square wa, and 30,000 to 50,000 baht per square wa respectively, depending on other factors such as exact location, project condition and land size. There are few new condominium projects in the area of the survey because there is an airport close by, meaning high rise buildings are restricted. More projects are likely to be constructed further away from the airport once complete. Currently, few new condominium projects on Sri Varee Noi and ABAC Road are selling for 50,000 up until 75,000 baht per square meter, varied by locations and conditions. The resale value ranges from 40,000 to 50,000 baht per square meter.

The high-speed rail project connecting the three airports and the emerging real estate investment opportunity

Today, Invest:MaN will take the fellow real estate investors to explore the opportunity in making with the upcoming development of the mega transit project. Those who wish to swap cash on hand into long-term real estate property must keep close update on this hot topic. Hence, we consider this scoop as a kickoff to this project. High-speed rail project connecting three airports, from Suvarnabhumi International to U-Tapao Airport, a recent public’s interest. At present, the Royal Declaration Decree of Expropriation for State Land Ownership has already been issued as a pre-approval of a go-ahead of the project. We, as an investor, can begin analyzing the investment potential within the subject areas. The idea of investing on low today in anticipation of a higher selling price when the project completes for capital gain is definitely very appealing. We will continue to update how the values of land in regions fluctuates, starting from the construction phase, the project’s completion until the official launch. We will try to analyze the potential investment on each of the rail stations which consist of: Chachoengsao Station Chonburi Station Sriracha Station Pattaya Station U-Tapao Station Rayong Station (to be confirmed) Credit : EEC Some interesting features of this project includes the development of area around the train stations such as Chachoengsao Station which will serve as an intersection connecting the Isan – Kaeng Khoi Railway and the Eastern Line – Aranyaprathet and also the location of Sriracha station that is close to Laem Chabang Port. In addition, there are also related EEC projects such as the expansion and development of the Laem Chabang Port and the U-Tapao Airport respectively. With the intention of being the aviation center in the east of Thailand, the airport development consists of terminal expansion to accommodate more passengers, runways, and a large aircraft maintenance center. Hence, this project is considered to be mega size in terms of impact it will have on various sectors. We will only cover lands within approximately 1 kilometer radius of each station in our analysis which include the present land usage, legal regulations, city planning & color zoning and potential highest & best use. Our team of professionals will explore and present to you the market price of land offered for sale within the area. Nevertheless, investors are always advised to conduct their own due diligence for investment purposes. Normally, Invest:MaN will try to look for value for money property, possibly results of property auction, non-performing/distress asset. Stay tuned for the analysis of the first station, Chachoengsao! Follow Invest:MaN, not to miss out on hot-topic of interest for real estate investors. Credit: EEC and Wikipedia

Investment on Time Sharing Project

Today, InvestM@N will introduce you to a passive investment opportunity which could be the answer for risk-averse investors. Time Sharing Project is investment in real estate development projects, especially those registered as condominiums. You can find these kinds of projects in popular tourist destinations such as Pattaya, Hua Hin and Khao Yai. The investment idea is fairly simple. Investors purchase units in the project, at the sametime, giving the project management the right to rent the units or run them as part of hotel set-up. In return, the investors would have the right to use the units while also standing to receive yield in which the projects guarantee payout to investors. the rate of return or yield to investors. Vary by projects, the rate of return usually ranges from 5% onwards to 10%, given the period of 5 years to 15 years of contract. The nature of this investment is very similar to saving money in banks for interest, where return on investment is decent for acceptable risk. The only difference is the units in which investors will own with the limited amount to use, normally 20 days annually. Some projects would offer 30 days to sweeten the deal. Nevertheless, in reality might not sound as good as the advertisement. At the end of the day, there is no actual truth in “100% guarantee on return”. There have been several cases in the past where projects were unable to fulfil their obligations. Promises cannot be met by the project management, for example, both disclosed and not disclosed, an advertisement to bring about a well-known hotel chain to manage the project which fails to materialize in reality. The quality of service deteriorates as time passes while being charged with an increasing common area fee. Some projects even try to lure investors by offering high return rates like 7-8% during the first 3 years, renewing every 3 years. However, issues arise when the renewal of the contract due, for example, an agreement to lower down the return rate, extra burden of public property maintenance, depreciation and miscellaneous cost to be responsible by the investors. Suddenly, you may find that the yield is less than 3% minusing all the extra costs which were not agreed upon purchase. Investment policies and expectation Investing in Time Sharing is another opportunity for investors. Investors must determine the enter and exit strategy under the expectation of reasonable return. Factors that must be considered before investing are: Direct rate of return (%) as stated in the project proposal, term of contract including; period, options and term of contract extension. How many days are you eligible to use the units? How many for weekdays and weekends? The credibility of the development company who owns the project. A good reputation firm can have a positive impact on the project value when investors wish to sell for profit. Quality is also ensured by the project. Numerous problems may occur under the management of the company without credibility, not to mention prices which may fluctuate. Investors have to be careful because many developers can be tricky and unfaithful with tactics in an attempt to take advantage of the investors during the period of the contract. What are the costs that incur for investors? Investors have to be careful before entering into a contract to protect themselves from any additional cost which might be charged upon them later on such as cleaning fees, electricity bills and miscellaneous costs. Administrative expenses such as annual common area expenses, insurance expenses which is mandatory if the project is a condominium type project. What expenses to be covered by the management? Be extra careful on the conditions and terms about exiting the time sharing program. The best condition for investors is to be able to exit the program in order to sell for profit. An ideal contract must not stop investors from leaving the program with consequences. Moreover, the change of ownership should not result in lesser benefit for the new owner. The contracts which prevent investors from exiting the program immediately are not suitable for investment. Every investment contains risks. Time sharing investment is suitable for investors who wish to invest long-term and are looking for more than just the monetary value of investment but also the leisure and lifestyle. Having a place that you can visit during the weekend away from cities while making some income out of it. It is important to look at the growth rate of projects’ prices within the area. The demand and supply can help you predict if the prices you are paying today will appreciate in the future. Lastly, do not forget to make sure the credibility of the owner or developer. The bigger the names, the more reliable and trustworthy they are going to be.

Changes in the residential property market

It’s behind us! Year 2020 has been special and difficult for everyone. However, Covid-19 continues to spread. Today we take our readers to look at the changes in the residential property market in Bangkok since the Covid outbreaks earlier last year until now and are likely to persist indefinitely. People adapting their lifestyle to suit the New Normal era. “Work From Home” has become a norm and essential for businesses to carry on. As a result, we are seeing big changes in the residential property market. Last few years, the people of Bangkok have turned their attention to condominiums and apartments in the city center as an ideal way of living, willing to live in a confined space for the convenience of commuting to work. With the luxury of working from home, the problem of travelling has become irrelevant for the majority of Bangkoker. Therefore, people have their heads turned to single-detached houses and townhouses as in the old days when condominiums were non-existent. Big time developers had anticipated the changing in what people are looking for when purchasing residential property. More housing projects of different types are being launched and discussed to meet the needs of people, wanting more living space as most of the days are being spent at home. Moreover, after analyzing the current market condition, development groups and real estate researchers are of the same opinion that this new discovered trend will likely to last for indefinitely. So we can expect the rising number of housing projects as a contrary to condominium projects. Prospec Appraisal is here to provide consultant and appraisal services for houses and other kinds of real estate. People who are planning on moving to new places better suit the New Normal era, valuation of assets is important and should not be overlooked before buying or selling property. Credit to news and information sources: Bangkokbiznews

PDI continues huge hotel purchases

During the situation which considered to be a downturn in the hotel business, there are still some business people who think that it is a good chance to turn the crisis into an investment opportunity, loaning money for investment with a very low-interest rate, for example, investment news that Invest:M@N is currently interesting. In addition, these two 5-star hotels lying next to the Chao Phraya River purchasing transaction can also give us very useful information as both hotels combine a total of 400 rooms at 10 billion baht. Therefore, the average price per room key is approximately 25 million baht. Credit to news and information sources: Bangkok Post

Property Valuation for Legal Cases in Thailand | PROSPEC Appraisal

General property valuation report

Prospec Appraisal Chiang Mai District office

Counting down to PDPA

Rural road connecting the National Highway no. 3256 and 200-years Rattanakosin Road.

The high-speed rail project connecting the three airports and the emerging real estate investment opportunity

Changes in the residential property market

PDI continues huge hotel purchases

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