Property Due Diligence in Thailand

Performing property due diligence in Thailand involves a series of enquiries, checks and examinations. The process helps the buyer to confirm if the property meets the requirements. It may also include checks on the mortgages and legal encumbrances on the property. The goal is to minimize the risk of any legal problems later.

Check Building Permit

The first step in performing property due diligence in Thailand is to check whether the property has a valid building permit. Building permits are issued by the Land Registry and verify that the property has been approved for construction. Purchasing a property without a valid building permit is illegal. This could lead to fines and jail time. It is important to obtain a copy of the permit from the Land Registry.

Checking the Property Title Deed

Another important step in performing property due diligence in Thailand is checking the property’s title deed. Property title deeds can be amended at any time. If the title deed is not valid, the seller is unlikely to issue a title deed to the buyer. The buyer should check the property’s records and make sure that the property’s boundaries are in accordance with the property’s title deed. This will ensure that the buyer is not dealing with a fake owner.

The lawyer conducting the due diligence will also verify that the property is not subject to any outstanding taxes. This will help the buyer to avoid any hidden costs. A property lawyer can also investigate the property for any legal problems and ask questions about the property’s licensing and reliability.

Seller or Developer Research

It is important to check whether the developer is financially sound. If the developer has financial problems, recovering deposits may be difficult. A financial crisis can also delay the development of a project. It is also important to check the developer’s experience. Investing in a property with a reputable developer will help you avoid any property problems in the future.

Another important step in conducting property due diligence in Thailand is checking for any liens or mortgages on the property. Property liens may be attached to the property by someone who does not have a right to it. It is also important to check the property’s sewage and telephone systems. If the property has an existing sewage system, the buyer should check whether the system is properly maintained. If the property has a phone system, the buyer should verify whether the phone company has a service contract.

If the property is a condominium, zoning laws are also an important factor to consider. Buying a condominium off plan is common in Thailand. The laws for zoning are spelled out in several codes. These laws are complex and the buyer should be familiar with the laws before investing in a condominium.

It is also important to find out whether the property is legally registered and whether the seller has a valid title deed. A bogus title deed could mean that the seller is not legally authorized to sell the property.

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