Conduct Due Diligence in Thailand is an investigative process used to verify information and assess the risks and benefits of a decision or transaction. It involves a number of important checks including checking if the property is in legal ownership and if building permits have been issued.
It is also important to check the developer and their ability to complete the project especially if buying off the plan. This will include their financial status, and whether they have the correct zoning laws.
Property Ocular Inspection
When conducting a property due diligence physical inspection in Thailand, several crucial factors must be taken into consideration. Firstly, it is essential to thoroughly assess the property’s physical condition, including its structural integrity, electrical and plumbing systems, and overall maintenance. This inspection ensures that any existing defects or issues are identified, allowing potential buyers or investors to make informed decisions about the property’s value and potential investment risks. Furthermore, it is important to comply with local regulations and standards specific to Thailand. This includes evaluating the property’s compliance with building codes, zoning regulations, and any environmental concerns that may impact its future use or development. By conducting a comprehensive physical inspection, investors can mitigate potential risks and make well-informed decisions regarding property acquisition in Thailand.
Check Building Permits
One of the most important aspects of due diligence in Thailand is checking for building permits. This will ensure that any construction done on the land is legal and that the property meets all zoning regulations. It will also help you avoid a potential lawsuit.
Another part of due diligence is conducting a background check on the property seller. This will help you verify their identity and check if they have any outstanding debts. This step is crucial, as it will help you avoid a costly mistake and protect your investment.
When buying a property in Thailand, it is important to do a thorough investigation of the developer and the property. A good due diligence report will make sure that the developer is legitimate and can complete the development process on time. It will also check that the property has passed its environmental impact study and zoning laws. It will also look at the history of the property and the company, including the date it was registered and if it has changed its name in the past three years. It will also check if the property has any usufructs, superficies, or lease agreements. It will also check if the developer has any bank loans or mortgages on the property.
Property Seller Investigation
The investigation of the seller may also include the checking of his or her credit, bankruptcy, and court cases pending which might affect their right to sell immovable property. It should also be ascertained whether the land is subject to any lease, obligations, charges, easements (called servitudes), claims, powers of attorney, caveats, or any other rights registered against it.
A good title deed will usually reveal a history of ownership of the land and if necessary searches can be made to establish whether there are any mortgages, or other encumbrances such as claims, usufructs, superficies, and habitation rights. It should also be ascertained if the immovable property has been sold to more than one party.
When foreigners purchase property in Thailand it is sometimes done through a Thai company rather than an individual. The procedure is quite similar to when an individual buys a property but documentation will be needed to show that the land is being transferred from a company. This will usually involve a Power of Attorney from the foreigner, and the bank if there is still a mortgage on the property. The land tax will also need to be paid. For this reason, many people choose to hire a property lawyer who can take care of the paperwork on their behalf.