Buying a property in Thailand can be a costly undertaking. It is crucial to carry out thorough due diligence before purchasing a property. This will ensure that the property you purchase is legitimate and that you are protected from unscrupulous people.
Property Physical Inspection
The first step in due diligence in Thailand involves physical inspection. This will ensure that the property you purchase matches the deed. It will also allow you to confirm that the property is free of any mortgages or liens. You should also verify that the property is registered with the local land office. Failure to do so can result in heavy fines and jail time.
Check the History of the Property
The second step in due diligence in Thailand is to examine the property’s history. This includes checking the status of the current owner and whether the property has been sold before. It may also include checking whether the property has been subject to any litigation cases. In addition, you should also check whether the property has any sewage or drainage problems. You should also investigate the road and utility connections to the property.
Research about the Seller or Developer
Due diligence in Thailand must include all of the legal aspects of the property. These aspects include the owner’s background, the business environment, and applicable laws. If the property is being purchased for a business, it is important to examine the company’s history, and to look at how the company treats its employees.
You should also consider the property’s zoning laws. This is important when purchasing condominiums. You will also need to check the property’s unit turn rate, and market rents and labor costs. These factors will help you to formulate financial projections.
Legal Process
Another important aspect of due diligence in Thailand is the legal process involved in registering the property. It is important to know that there is no guarantee that the former owner or seller will have the property registered with the local land office. A property’s deed is only as good as the process by which it was registered. It can be nullified or adjusted by the local land office.
Due diligence in Thailand also involves a thorough search of the local court database. This will allow you to confirm whether the property you are considering purchasing is free of any liens or litigation cases. It will also reveal whether the owner is reputable and reliable.
In addition, you should also check whether the building permit has been registered with the local land office. This will ensure that the property you purchase can be built on. You should also check whether the building permit was issued by a legitimate company. It is important to check whether the house is registered with the house registration number. You should also check whether the superficies, leases, and servitudes are registered.
Finally, you should also carry out a detailed search of the property. This will include checking the property’s boundary lines, examining any potential attachments, checking the current owner’s position, and confirming whether the property is legal to build on.