Any real estate transaction, including those in Thailand, must include the step of doing property due diligence. Due diligence entails a thorough examination of all facets of a property, including its ownership, legal status, and any potential liabilities or problems.
When performing due diligence on real estate in Thailand, keep the following in mind:
- Check the Title Deed: Confirm that the seller is in possession of a legitimate title deed to the property. A crucial legal document that establishes ownership of the property is the title deed. There are various kinds of title deeds in Thailand, so be careful to speak with a lawyer to determine which one is best for your transaction.
- Verify that the property is unencumbered by any liens, mortgages, or other claims on it by checking for encumbrances. This can be achieved by looking over the title deed and running a search at the neighborhood land office.
- Verify that the property is zoned for the intended purpose and that there are no land use restrictions that would prevent the intended use by reviewing the zoning and land use regulations.
- Verify that the property has all relevant permissions and approvals for any existing structures or planned development by looking at the building regulations and permits. This covers environmental permits, building permits, and other pertinent approvals.
- Perform a site inspection: go to the property and physically inspect it to confirm its state and the condition of any existing structures. This entails looking for any flaws or damage and spotting any potential dangers.
- Review all pertinent legal documents and contracts, including any purchase agreements, leases, or other agreements relating to the property, with the help of an attorney.
- Consult with professionals: To confirm any technical features of the property, such as structural integrity or environmental concerns, consult with professionals, such as engineers or architects.
To ensure that all pertinent parts of the property are carefully examined, it is advised to consult with a lawyer or other real estate professionals because conducting property due diligence in Thailand can be a complicated process.