Importance of Property Due Diligence
When buying a property in Thailand, it's imperative to perform Property Due Diligence in order to avoid getting scammed. While this process is not as strict in Thailand as in many other countries, it is still necessary. The judiciary checks all property owners for a variety of factors, including criminal and civil history. Having any of these details on hand will greatly assist you in the acquisition process. Read on to learn more about the importance of conducting property due diligence in Thailand.
Whether you are buying a condo or a villa in Thailand, property due diligence is a vitally important process. Due diligence is the process of looking through documents and conducting a thorough assessment of a property and its seller. The purpose of due diligence is to eliminate investment risk by ensuring the property is free from any encumbrances or liabilities. If there are any, these risks must be mitigated and the property's true worth must be assessed.
It is also essential to investigate the seller's legal rights. Make sure the title deed matches the Land Office records. Additionally, the due diligence report should include a map showing the location of the property. This map can provide important information, including the history of the land's ownership. Moreover, a due diligence report will detail the ownership history of a property and can identify any legal issues. The report should also indicate any ownership changes, if any.
Perform Ocular Inspection
One of the main aspects of due diligence is to conduct a Physical Inspection. This involves visiting the property, comparing it to the title deed, and identifying if the boundaries are indeed mapped. It will also reveal whether or not the property can be developed as the developer intended. If the property is on a public road, physical inspection will confirm that the zoning ordinance of the locality will allow for the development.
Property due diligence is a vital process for a buyer to complete before buying a property in Thailand. The buyer must be certain about the background of the seller, such as whether or not the developer has the legal capacity to finish the project. Due diligence can be accomplished through thorough inspection of documents, including court records and licenses. For those interested in buying property in Thailand, a physical inspection will prove to be beneficial.
Check Building Permits
The Administrative Orders on Building Permits in Thailand are governed by the Building Control Act (1979). Applicants should submit their building permit application documents to the administrative office of their locality. The responsible officer will arrange a site visit to verify the documents and determine whether the proposed building is legal. In Thailand, certain areas are prohibited from building in certain zones due to land use restrictions imposed under three laws. Therefore, it is important to have a building permit before beginning construction.
The inspection of building permits is crucial when purchasing property in Thailand. If you buy a plot of land, compare the original plan to the current one. If possible, ask the property owner to provide you with proof of legal structures. Even if the property owners did not need construction permits, it is still important to inspect the structures for safety and soundness. Owners often cut corners because they have limited resources, time, and are paying higher property taxes.
Research the Property Developer or Seller Credential
While condominiums are the easiest form of property to purchase in Thailand, you must do a fair amount of research before buying a condo and signing on the dotted line. We'll examine a few of the steps that you should take to ensure that your condo is a good investment.
- Registration of Condominium. Are the land and building registered as a condominium under the Condominium Act B.E. 2522?
- Do a reality check. Will you be able to maintain a monthly amortization? Can you afford to pay the equity and the monthly installments?
- Check if the broker/agent is a licensed practitioner and ensure that the property for sale has not been sold to other buyers.
- Make sure that the developer or seller has a License to Sell for the particular project. You can hire a property lawyer in Thailand to check on this.
- Do an ocular inspection of the property. Check if the materials of the house or condo unit conform with the development standards and approved construction specifications under the Building Control Act B.E. 2522 (1979).
- Always check with your property lawyer in Thailand before signing any contract.
Hire a Thai Property Lawyer
Due diligence is an important process, which many potential property buyers and lessors overlook. Some real estate scams occur in Thailand, with scammers claiming to own property that they do not control. Others involve land that has not yet been developed. Regardless of the circumstances, a property lawyer in Thailand can help you carry out due diligence. A lawyer can check whether a property is legally valid and prevent you from being ripped off.
If you plan on buying real estate in Thailand, it is crucial to hire a property lawyer to help you through the process. They will be able to assist you with contracts, deed transfers, and other legal documents. A property lawyer can also help you obtain insurance, if needed. These legal professionals will reduce the risks of moving to a foreign country, especially if you are unfamiliar with Thai laws.