Property Due Diligence in Thailand

If you are buying property in Thailand, you should consider hiring qualified legal assistance for conveyance and due diligence in Thailand. As a foreigner, it is difficult to fully understand Thai legal writing and local regulations. To get the best possible deal, you should always have a lawyer on your side, executing both the conveyance and due diligence. Here are a few important steps to take:

What is Due Diligence?

The legal industry offers comprehensive due diligence services. PUGNATORIUS carries out phase three property due diligence, which is unmatched by the lower market standard in Thailand. The due diligence process gives you the confidence to proceed with your investment. If you're thinking about purchasing a property in Thailand, a due diligence investigation is crucial. Here are some tips to get the most from your due diligence investigation. In Thailand, due diligence is a requirement before purchasing any property.

The due diligence investigator should check certain details if the landowner is a developer in Thailand. He or she should check the company registration date, shares capital, and any name changes within the past three years. They should also check whether the property has a building permit or land allocation permit. Finally, they should check the type of title deed that is issued for the property. A reliable chartered surveyor should conduct a land survey.

Title Search

A title search is an essential part of due diligence when purchasing property in Thailand. This investigation is an essential part of due diligence as it determines the true legal ownership of a property and if there are any encumbrances against it. Title searches are performed in both foreign and Thai law. A title search is crucial to ensure that the property you are considering is free of liens. A title search also confirms whether the agent or developer selling the property has the legal capacity to sell it.

A Thai-registered property lawyer can access court records and perform a thorough background check on the property, seller, agent, and developer. These are all critical elements of due diligence. In some cases, there may be more than one claimant on the property. A title search can reveal any liens or unregistered easements. Lastly, a title search can reveal whether or not there are ongoing legal battles against the property. If there are ongoing legal battles between the developer and the seller, you'll want to find out how the property has been titled.

Physical Inspection

A physical property inspection is an important part of property due diligence in Thailand. It helps identify the boundaries of the property and its connection to the public road. This can help the buyer ascertain if a building will be a condominium or not. If there is a conflict between the legal and physical boundaries of the property, the Physical Inspection will help determine whether the building will be a condo or not. In Thailand, foreigners are not allowed to own freehold land.

The Thai land office is the primary repository of legal documents, including land titles and property rights. An investigator should check the documents and confirm whether they are legitimate. The inspector should also investigate the company's ownership status and the date it was registered. The property title deed should be translated into English so the buyer can understand its rights and obligations. A physical inspection of the land will allow the buyer to discover drainage issues, major utilities, roads and other disturbances in the environment. A reliable chartered surveyor should also conduct a land survey.

Checking of Building Permits

When buying property in Thailand, one of the most important steps to take is checking for building permits. Depending on the type of property you are purchasing, you may have to check if the land has any special permits in order to construct a house on it. This is a necessity as some areas are not allowed to build condominiums. Additionally, you should check for any usufructs or servitudes on the land.

It is important to check building permits and land use restrictions before making an offer. Many places in Thailand do not allow condominium properties. Checking building permits and ensuring that drainage can occur will prevent any major problems. The lawyer conducting due diligence will present the house registration and land title deed for review. If the building plans do not match the approved IEE report, a change in the construction must be made.

Seller or Developer Background Search

It is extremely important to perform a background check before buying a property in Thailand, whether it is for personal or business purposes. Thailand ranks 98th out of 160 countries on the NationMaster Government Corruption Index. You want to protect yourself against scams, and the best way to do this is to do a background check. Listed below are some of the reasons why it is important to do a background search:

A seller or developer background check is a great way to get to know the history of a property. You can learn who owns the land, who has registered encumbrances on the property, and who is currently registering it as a servitude. The process of due diligence can help you discover the real owner of the road in front of the project. A lawyer or land officer can conduct this process for you, and the entire process will be done in Thai.