Due Diligence is the extra precaution a reasonable person takes before entering into an agreement with another party. It will prevent unnecessary harm and losses from occurring.
It includes a complete review of the title deed to verify that the details match registered Land Office records. It also checks for legal encumbrances such as a servitude or usufruct.
A physical inspection is a critical component of property due diligence. It can help confirm the legal boundaries of a land and check for any physical constructions that could interfere with future investments. For example, an inspector can determine if the property is connected to a public road and if the building complies with zoning laws.
It also helps to ensure that the seller is actually offering a valid title deed. This is particularly important if you are buying off plan. It’s a good idea to check whether there are any servitude agreements, usufructs or mortgages registered against the property.
It is also a good idea to check the developer’s reputation and financial resources. If the developer has no money left after paying off debts, it may not be able to complete the project. A thorough inspection can help you avoid being taken advantage of by dishonest sellers or losing a fortune because of a genuine oversight that was not caught during due diligence.
Any time you acquire property, whether through a land purchase or an acquisition of a company that holds property, there is always the possibility that unforeseen legal issues will arise. Due diligence is an investigation to confirm certain facts and details about a property that could potentially save you from having to deal with unwanted legal problems in the future.
This review includes determining whether the property has valid land documents (either Nor Sor Si Jor or Chanote) that guarantee complete ownership rights. It also includes examining any existing debts and checking zoning regulations.
This process can save you from being taken advantage of by dishonest sellers and it can even protect you against genuine oversights that can be costly to fix. Our Thailand due diligence services will lower your risk and allow you to make an informed buying decision. Contact us today to learn more about our services.
Due diligence is one of the most important aspects of investing in property. It ensures that you are dealing with a legitimate dealer and developer. It also protects you against any legal snafus or hidden costs that may arise from the purchase. While serious problems are rare, they do occur, and investors must take the necessary precautions to avoid them.
This includes conducting a thorough title search, examining existing debts, checking zoning laws, and verifying the developer’s credentials. It is also important to check whether the seller has a usufruct, superficies or lease agreement on the property.
It is important to note that due diligence should always be carried out by a lawyer. This is because it can uncover many legal issues that would otherwise go undiscovered. It can even expose fraudulent dealers and developers who are taking advantage of novice investors. Due diligence should be an integral part of every investment in Thailand. Otherwise, you might end up paying a lot of money for something you don’t even own.
If you are buying land or a house in Thailand, you should check the building construction permits as part of property due diligence. It is illegal to build buildings without a permit in Thailand, and this step will save you from legal issues in the future. It will also ensure that the house is in compliance with local building control regulations and environmental requirements.
A property practitioner will also conduct a search of the land title for any legal encumbrances that may affect your purchase such as usufructs, mortgages and servitudes. They will also check the zoning of the land to make sure that it fits with your intended use for the property.
In short, property due diligence is a process that confirms all the material aspects of your immovable property acquisition in Thailand. It involves physical inspections, effectuating a land title search and researching the credentials of real estate developers. A property practitioner will help you avoid the most common problems that occur in Thailand when investing in immovable properties.