When buying property in Thailand, it is vital to perform due diligence. You should check whether the seller is actually the owner of the property. If the seller is not the owner, you should not buy it. There are also a number of legal and administrative requirements you must meet in order to purchase property in Thailand.
Company Due Diligence
Due diligence involves document review in Thailand when you want to buy a property or set up a company in the country. This process ensures that you are buying a land or company that is legally compliant with the applicable laws and regulations. Often, due diligence in Thailand will also include checking on the ownership of the land, the development permits, and any pending litigation.
Company due diligence in Thailand can also involve reviewing the human resources and employment contracts of a company. Documents reviewed will be relevant to the business in question, including the type of products or services offered. Other items considered during due diligence may be environmental permits and licenses, or the treatment of personnel. Regardless of the type of due diligence you require, a Thai representative can help you make the best choice for your business.
Property Due Diligence
Due diligence is a multi-dimensional process of investigation and verification in order to identify any legal issues pertaining to a property. This investigation typically includes the physical examination of the property and checking the owner’s reliability. It can also include researching the court database for any lawsuits or liens against the property.
Due diligence is a critical part of purchasing a property in Thailand. It involves comprehensive checks for any legal issues affecting the property, including building permits, zoning restrictions, and debts owed by the current owner. In addition, the due diligence includes checking the ownership of the property and the history of the land.
Land Due Diligence
Due diligence can be an important part of buying and selling a property in Thailand. Due diligence includes investigating the title history of the property and reading the land title deed carefully. As Thailand’s land title system is based on registration of the title, any errors in the registration can have legal consequences.
It is imperative that the lawyer conducting due diligence for a property meets with the Head of Registrar of Land Office to double check all the property’s details and information on the file. Due diligence can uncover shocking facts about a property and should never be performed without the involvement of a lawyer.
Building Permits Due Diligence
One of the most important parts of due diligence in Thailand is checking for the property’s building permit. This document verifies that the property is owned by the owner and is legal to build on. The owner of the property must submit this document to the Land Registry before construction can begin. When you’re considering purchasing a property in Thailand, make sure to check whether the permit is legitimate and has been issued by a registered company. Failure to do so could result in fines and even jail time. It is best to use a reputable due diligence service to check this information for you.
Due diligence also includes investigating the title history of the property. In Thailand, property title is based on registration, and any mistakes in the registration of the property title can have legal ramifications. Therefore, when purchasing a condominium in Thailand, it is important to double-check the title of the property to ensure it is free from any legal entanglements.