Legal and General Media Center -

Archive for April, 2011

Legal

April 29, 2011

Buying Land in Costa Rica

Buying Land in Costa RicaIn Costa Rica foreigners have the same rights as nationals when purchasing real estate property and the Constitution guarantees protection of such property ownership rights. Purchasing Real Estate in Costa Rica is fairly simple and can be a rewarding experience if you retain a reputable broker and an attorney to guide you through the purchase process. There are several internationally renowned real estate offices in Costa Rica, such as Century 21, which offer a wide portfolio of properties throughout the country. Nevertheless, the buyer must be certain that the title being offered is exactly what has been bargained for. Consequently, the buyer should seek the services of a lawyer to perform a title search in the Public Registry and to recommend whether to acquire the property personally or through a legal entity.

First and foremost, it is necessary to verify the credentials of the seller and its title to the property. In order to perform the title search (due diligence process), the lawyer requires the property number (Folio Real) and/or the name and identity number of the owner, whether it is a person or a company. The Public Registry maintains a very accurate database of all registered properties in the country.

The title search will verify the identity of the owner(s), the property’s size, location and boundaries, the nature or use of the property, and whether the title is free and clear of any encumbrances, such as a mortgage or pending legal actions.

Zoning or other types of restrictions may affect the property. For example, if the property is part of a condominium, some construction restrictions may apply. If the property is an environmentally sensitive area or includes a historical site, limitations of use may apply. The buyer’s lawyer should research if any restrictions exist and consult with the corresponding local government or government agency to determine the extent of such restrictions. The Maritime Zone Law regulates the land within 200 meters of the ocean, which belongs to the government, with some exceptions where title was registered before the law was enacted. The vast majority of the beaches in Costa Rica are subject to this law. The first 50 meters from the high tide mark are considered public areas with very restrictive uses. The next 150 meters are subject to concession or leasehold rights granted by the local government with particular terms and conditions that must be carefully reviewed. Such concessions can be transferred with the approval of the local government.

Property taxes in Costa Rica are very low when compared to the rates in North America and Europe. Before closing the sale, the buyer should request from the seller a certificate issued by the local government assuring that there are no municipal and/or territorial taxes due. Municipal taxes cover certain public services such as street lighting and garbage collection services. Territorial taxes are established by law and are determined by the size, location and value of the property, among other issues. These taxes can be paid annually, quarterly, or by semester.

In addition, if the buyer plans to build a structure on the property, other permits are required to be submitted to the Local Government or Municipality, as each of them have different ordinances and development plans that need to be followed and are strictly enforced.

The property must be acquired through a public deed (escritura pública) issued by a Lawyer and Notary Public who is responsible for registering the sale in the Public Registry. As a general rule, the buyer selects the Notary in cash transactions. However, if the property is to be financed or mortgaged, the seller selects the Notary.

Finally, closing costs are approximately 3-4% of the total purchase price. These costs include legal fees, property transfer tax, and legal stamps. There is no rule of thumb as to whose responsible for this expenses (buyer or seller), and it’s recommendable to negotiate this at the first stages of the negotiation.

Legal

April 23, 2011

Details On Legal Aid

Details On Legal AidLegal aid is a public funding system which is intended for people who have limited financial means and cannot afford to pay for legal services. Individuals who need assistance on paying for the expenses of legal services can apply for it. However, not everyone and not every case may expect to receive legal help. There are guidelines and tests that must be passed and met before a legal aid is granted.

Receiving this assistance is based on the amount of income, the amount of capital such as belongings and properties and other financial eligibility of the applicant. Grant of the help is also based on the probability of the success of the case or if it is worthy of the money and time it may be provided with.

It is focused on individuals at risk of personal threats. It may be available for various kinds of legal civil cases. A legal civil case is described as a case where a party may be involved in a dispute with another individual, company or group. The civil disputes also include cases that have something to do with homes, relationships such as separation and divorce, money and benefits. There are particular cases that are not typically granted with legal aid. These cases may be on personal injury, negligence that resulted to property damages, legally transferring property ownership, boundary disagreement, making of wills, defamation such as slander or libel, falsehood, company and business matters. There are also certain courts and tribunals where legal aid may not be granted such as Lands tribunal and/or Employment tribunal.

To determine if a person applying for legal aid is eligible to receive the legal assistance, various aspects and points are considered. First there is the income of the applicant. The amount of income the applicant receives must provide an adequate amount for living expenses after the legal services are calculated. The applicant’s disposable capital may also be assessed; if there is any money, property or investments that may be sold or used so that legal help costs may be afforded. If the applicant has a partner or spouse and/or when the spouse is not the applicant’s opponent, the spouse’s disposable capital and income will also be evaluated. You may not be eligible for legal assistance if the amount of your income before tax deductions is high enough to afford a legal help. The gross income limit is applicable to families where 4 or more children are independent. Similarly, the amount of disposable capital must be below the limit in order to be financially eligible to it. Aside from the income and the capital, other things remain to be evaluated such as the type of the case the applicant has.

There are instances when legal aid may be granted without regards to the amount of money a person has, for instance on care proceedings related to children. The levels of legal assistance that applicants receive may vary. This level will be based on the results of assessment of the application. The first level is legal help which covers the initial advice or assistance to the legal problem. Next is assistance at court or when a lawyer speaks in your behalf but even with no formal representation. Family mediation and family help are other levels of legal assistance where family disagreements are mediated. Then there’s legal representation where the solicitor will provide court representations for you.

Legal

April 18, 2011

Attorney Directory – For Those Seeking Appropriate Legal Representation

Attorney Directory - For Those Seeking Appropriate Legal RepresentationAre you desperately seeking the services of a lawyer? Are you looking to resolve your legal issues at the earliest? Now you can find a lawyer online! Sounds like a tall order? No, it isn’t! You can browse through an attorney directory to locate an attorney of your choice. As a matter of fact, finding the right attorney to handle your case is very important. The lawyer you choose can make or break your case. In other words, the success of your case largely depends on the lawyer you choose. He should be skilled and experienced to say the least. He should have years of experience under his belt, not to mention reputable results to back up his claims.

Finding a reliable lawyer can be a tad daunting. It is definitely not the easiest thing to do. Thankfully, a quick lawyer search can help you make an informed decision. All you need is a computer and internet connection. You can look through an updated database of thousands of lawyers and firms. You don’t need exceptional browsing skills to search lawyers. The process is simple, easy and convenient. Looking through an attorney directory is an easy and interesting way of locating an appropriate lawyer. You can also browse by specific legal issues – Business & Commerce, Banking & Finance, Tax & Duties, Bankruptcy & Liquidation, Real Estate, General Legal Activities, etc.

Thanks to attorney directory websites, conducting a lawyer search is easier than ever. Reputable directories generate a list of attorneys meeting your exact search criteria. A comprehensive directory lists the best lawyers and their profiles. You can browse through their profiles to learn about each attorney, their experience, background and more. Some directories maintain certain criteria to be met by lawyers in order to get listed. This in turn saves your valuable time since you will be able to locate an attorney who will be best suited for your case. You will find someone with the exact qualifications that you are looking for. Whether you need to find a lawyer or are seeking legal advice online, an updated directory will well serve the purpose.

The decision to hire an attorney is a big one. The importance of appropriate legal representation cannot be underestimated. A qualified lawyer can evaluate your case appropriately and suggest the best course of action to you. Sound legal advice online can work to your advantage. It can save you a great deal of time, money and stress. Legal issues are best left to qualified professionals. They have the experience, expertise and tact required to deal with such cases. You can know about specific details related to a lawyer. These include the current position held by him, the law school he attended, his primary practice area, contact details and more.

Make sure to choose an attorney who is right for you and the specific situation you are in. Do not hesitate to ask questions. Post your questions online and have all your queries answered. Find attorneys at law who have experience in handling cases similar to yours. Get the legal representation you rightly deserve.

Employment Law

April 8, 2011

Thailand Employment

Thailand Employment Termination of Employment

The Labour Protection Act B.E. 2541 (1998) (“the Act”) applies to all businesses operating in Thailand. The employer/employee relationship is regulated under Thai law, including matters relating to the termination of an employee.

The main reasons why Thailand employers may consider payroll cuts by terminating staff can be summarised briefly as economic, poor performance or misconduct.

It is common in the Thailand legal environment that the Labour Court tends to favour the employee and accordingly it is extremely important that business owners in Thailand adopt correct procedures insofar as termination of their employees.

Termination Payment Calculation Summary

The following is a summary of the quantum of severance pay which must be paid by an employer to an employee under Thai law if Section 118 of the Act is applied. This is calculated in accordance with the employee’s length of service.

120 days but less than 1 year – 30 days pay
1 year but less than 3 years – 90 days pay
3 years but less than 6 years – 180 days pay
6 years but less than 10 years – 240 days pay
more than 10 years – 300 days pay
Exclusions to Payment of Severance Pay

A. Short or Temporary Employment Periods

Labour laws in Thailand afford business owners certain exclusions from the requirement to pay severance payments if the following conditions apply:
An employee has served the company for less than 120 days.
An employee whose employment is stipulated in a contract set for a definite period and the employment is terminated at the end of that period, if this form of employment is in compliance with the Thai labour laws and regulations (Section 118 of the Act).

Employment with a definite period is allowed only for the following categories;
Employment on a specific project which is not the normal business of the employer;
Employment for occasional or temporary work; and,
Seasonal employment.

A written employment contract is required for the above with clauses stipulating the commencement and completion dates. In addition, all tasks must be completed within two years.

B. Termination with Cause

Under Section 119 of the Act, there are certain exceptions which enable an employer to avoid the payment of severance to an employee and which are as follows:-

The employee performs dishonestly or intentionally commits an offence against the employer;
The employee intentionally causes the employer to suffer loss;
The employee causes serious damage to the employer as a result of negligence;
The employee violates the employer’s working rules or regulations or the employer’s orders which are legal and fair where the employer has already given the employee a written warning, except in a serious situation where the employer is not required to provide a warning;
The employee neglects to complete his or her duties by not attending work without justifiable reason for three consecutive working days; and,
The employee has spent time in prison by final judgement, with the exception of negligence or petty offences.
The exceptions to which employers are liable for severance pay are stipulated in Section 119 (1) – (6) of the Act.

If the employer terminates the employment contract of the employee for other grounds, the employee is entitled to receive severance pay.

Nevertheless, to terminate the employment of any employee on the grounds stipulated in Section 119 of the Act, the employer must provide a letter of termination to the employee with the reasons for termination. Note that in accordance with Thai law, the reasons provided must be real or relate to the actions for termination of employment.

Special Severance Pay

In the case where an employer relocates the place of business in Thailand which affects the normal living of an employee or his/her family, the employer shall notify the employee at least 30 days before the date of relocation. Thai law allows the employee to refuse to move and become entitled to receive severance pay. Failure to notify the employee may result in a special severance payment in lieu of the advance notice of 30 days.

With respect to the termination of the employment on the basis of reorganising the Thailand based business, production line, sales or services due to the adoption of machinery or technologies which result in a reduction of the number of employees, the employer has a duty in compliance with Thai law (Section 121 of the Act) to notify the employee as well as the labour inspector not less than 60 days prior to the contemplated date of termination. Failure to do so will result in a special severance payment in lieu of the advance notice of 60 days being paid in addition to the normal severance pay.

Legal

April 1, 2011

A General Overview of the Legal Aspects of Limited Liability

A General Overview of the Legal Aspects of Limited Liability The following article provides a brief overview of the legal concept of limited liability and how it applies to companies in the modern global economy.

The dictionary at Law.com defines limited liability as follows:

“[T]he maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim.”*

For those conducting business in one or more jurisdictions a corporation with limited liability can provide a great deal of legal insulation as well as piece of mind. The said, in the United States, individuals often become confused regarding the application of limited liability concepts upon different types of legal entities. For example, limited partnership may only provide true limited liability to passive participants in the enterprise while general liability is attached to the active partner.

A corporation usually provides limited liability to the shareholders of the entity, but there may be some residual general liability placed upon the directors of the corporation, depending upon the jurisdiction. In the past a closely held “S-Corp” could be used in certain circumstances and limited liability could be enjoyed. However, many felt that both a corporation and/or an “S-Corp” required large investments of time and capital in order to maintain the legal formalities necessary to continue operation.

The Limited Liability Company is a concept that is based upon a blending of many different legal principles adopted from the jurisprudence of multiple jurisdictions. In a way, the LLC is something of an amalgam of many different types of corporate entities previously incorporated in many different international and American jurisdictions.

Toward the end of the 20th century, the idea of limited liability companies became popular among Americans and US states began enacting legislation to allow formation of LLC’s (or, more properly, Limited Liability Companies). In the year 1977, the state of Wyoming became the first in the USA to pass a true piece of LLC legislation. The Act was apparently inspired by the 1892 German GmbH Code as well as the Panamanian LLC. Since this initial adoption, many other states have passed similar legislation.

Rules, regulations, and laws regarding LLCs differ depending upon jurisdiction. Therefore, those interested in forming an American LLC are wise to contact an attorney from the jurisdiction where business or administrative functions are likely to be conducted in order to be apprised of the rights and responsibilities arising from LLC ownership.