Property Due Diligence in Thailand is a process that examines the history of a property and its owner. It involves examining the land title deed and evaluating building construction permits. It also considers the developer’s reputation and how well financed they are.
The due diligence process is complex and requires professional expertise. It involves four specific phases, Thai laws and market practices. It also includes vulnerable legal areas often overlooked.
Checking the property’s title deed
Performing property due diligence is an important step in buying any immovable property. It ensures that you are the legal owner of the property and that there are no encumbrances on it. It also helps you avoid being ripped off by unscrupulous individuals.
In addition to checking the property’s title deed, a comprehensive property due diligence process will also include examining documents related to the land, such as government permits. It will also cover the history of the property’s ownership, including a thorough search for liens and mortgages.
It is also important to check the building permit, especially if you’re purchasing an off-plan property. It is not uncommon for people to purchase a piece of land and build one or more houses, bungalows, or buildings on it. They then rent them out on a short-term or long-term basis, and receive a good return on their investment. This is a popular way for expats to invest in real estate.
Checking the property’s building permit
Due Diligence is a process that helps you evaluate the risks and benefits of an investment. It is crucial for any property investor. It also helps you identify hidden liabilities that may affect your investment’s value and profitability.
When buying a property, it’s important to check the building permit before making any payments. This is a simple step that can prevent fraud and protect your property rights. It can save you from a costly lawsuit.
The scope of due diligence can include checking the property’s registered value, title deed, and zoning regulations. It can also cover other aspects of the property, such as drainage and major utilities. It can even include a servitude check – the right to use a road, power cable, or telecommunications cable across your land. This is particularly important for developers in rural areas, where these lines often run through sloping land. These services are sometimes used as a form of security against mortgages.
Checking the property’s registered value
When buying property in Thailand, a buyer should conduct thorough due diligence to ensure that they are not being misled. This process includes examining the property’s registered value, title deed, and building permit. It also involves determining whether the land is open for development and investigating the drainage and major utilities.
A good due diligence report should also include a survey and ocular inspection of the land. This will help determine if the land is not being sold for less than it is worth. It is also important to check whether the land encroaches on government land or other public facilities.
Performing due diligence in Thailand is not mandatory by law, but it is an essential step in any property purchase. It can save you from a lot of trouble and money in the future. This process can be a bit time-consuming, but it is well worth it. Moreover, it can save you from being scammed by dishonest sellers.
Checking the property’s drainage
Due diligence is an important process when it comes to real estate investments. It is a vital step in avoiding potential legal risks and financial losses. During this process, you will check the property’s legal status and ask questions about its owner’s reliability. You will also look at the property’s infrastructure, including telephone lines and sewage systems.
Another important aspect of property due diligence is examining the developer’s reputation. This is especially important if you are buying off plan as many projects in Bangkok have failed because the developers were not properly financed or they broke building laws. We can tell you whether a developer is reputable or not by checking the property’s building permit.
The scope of due diligence for a property in Thailand includes a thorough review of the property’s title deed, asking about unregistered usufructs and checking whether there are any mortgages on the property. It also involves a physical inspection of the property to see what condition it is in.