Purchasing a real estate property entails prudence on the part of the buyer. This prudence requires the buyer to take the necessary steps before buying the property and one of these steps is conducting a due diligence as an examination on the title deed may not be enough. So if you are a property buyer, make sure to conduct due diligence first so that you will know more about the owner (or developer) and if the individual (or company) has complied with all the prerequisites like permits and other important details.
Due Diligence ReportConducting due diligence is not as easy as it may seem. It requires patience, determination and will to research everything about the title, the property, the people involved and the background of the developer. We conduct due diligence in such a way that it provides its clients with quality service through:
- Physical inspection Verifying a property, a person or a developer should not stop on paper alone. Actual physical inspection is needed to check whether the property is indeed accessible by public road and transportation and if the boundaries do reflect with that of the title deed.Zoning ordinances are in effect in Thailand and they do differ accordingly thus the need to check whether the property complies with the local zoning ordinance is also needed. Not just that, the checks will also include the ownership of the surrounding lands as these may hold some information with regards to the property you are planning to purchase.
- Checking the required permits
Developers need to secure the necessary approval and permits from the Thai government first before they can actually go and sell the property to you because:
- Not all areas in Thailand are open for condominium development.
- New developments must have available drainage.
- Construction permit must be in line with current plans of the developer and that it has been obtained legally.
- The construction plans may not be in line with the IEE (Initial Environmental Examination) because the developer changed it after receiving approval from the Office of Natural resources and Environment. Also, it is important to check whether the IEE was filed properly and it must also be established that indeed an approval was given by the concerned office to the developer.
- Thai law requires that a certain number of parking spaces should be available for condominium owners thus the need to check whether the developer has complied with the law as well as to determine the actual number of these parking spaces present.
- The developers background No matter how established a developer is, its background should still be thoroughly checked and this is what Siam Legal intends to do in every due diligence service it does.Examining court records may reveal a thing or two about the developer like being involved in a litigation, if its assets and financial status are sound or not and if the said development is not the company’s first project.
In closingAny of the procedures above may reveal one or two things about the developer that it did not share with you. Some of these “red flags” may not even be revealed if not for a carefully done due diligence. Our due diligence service also includes:
- Title search report
- Photos of the land and the development site
- English translations of the required permits and of other important documents