Importance of Due Diligence
Buying property in Thailand can be a risky business. One way to protect your investment is by performing due diligence. This involves thorough investigation of the property and determining whether the property meets your needs. It also includes checking the credentials of the property developer.
Due diligence is important because it ensures you are getting what you paid for. It also helps you avoid costly mistakes. Performing due diligence before purchasing property in Thailand can save you time, money and hassle. This is because you will be able to uncover information about the property that you may not have thought about.
Due diligence is also important for cross-border transactions. Because Thailand has a legal system similar to the United States, it can be difficult to purchase property without doing some research. This is especially true for condominium properties. You need to be careful about the title of the property and the current owner. Also, you should have an independent surveyor look at the property.
Process of Due Diligence
The first step in property due diligence in Thailand is to conduct a title search. This will help you identify who owns the property and whether any liens are registered on the property. It is also important to ensure that the property is free from mortgages. You may also find out whether the property is registered at the Land Office. This is important because the local land office may change the title of the property.
Another important step in property due diligence in Thailand is to check the property for usufructs. Usufructs are agreements that allow the seller to use the property for a specified period of time. These agreements may not be registered and may not have been executed. This is important because if you buy property in Thailand and you are not able to use it for a period of time, you will not receive your deposit.
Property due diligence in Thailand can also include checking for any problems with the land. You should inquire about the sewage system, main utilities, road access and drainage. If you buy property near a gas pipeline, you should check whether the pipeline has been registered. You should also double check whether you have the right to use the land around the gas pipeline.
Hiring a Property Lawyer
You should hire a property lawyer for due diligence. A lawyer will help you uncover the facts about the property and can help you avoid big problems down the road. A property lawyer will be able to prepare a detailed report that contains all the pertinent information about the property.
The process of property due diligence in Thailand involves asking questions about the property’s legal status, the reliability of the current owner and the services offered. You may also want to investigate the property’s telephone system. You should also check the building permits for the property. If you want to invest in a condominium property, you must conduct a physical inspection of the property. This will ensure that the property is located in the correct area and that the zoning regulations apply to the property.