Property Due Diligence is a crucial investigation that enables a buyer to verify that the seller has the legal right to sell. This includes translating the land title deed into English and investigating drainage problems, main utilities, and road access.
It also involves checking whether the property tax has been paid. If not, it may result in a costly lawsuit down the line.
Check the title deed
A land title deed is a legal document that shows ownership of a property in Thailand. This is important because it confirms that the person selling you a property is the true owner of it and has the right to sell it. It also allows you to check for any encumbrances such as mortgages.
A good Title Deed should be based on a clear survey of the property and clearly delimitate the boundaries of the land. In some cases, the Title Deed will be based on possessory rights or a cadastral registry. These types of Title Deeds are difficult to transfer or get building permits for.
A proper due diligence process will also identify any zoning regulations, debts, and ongoing legal disputes that may impact the future earnings and profits of your investment. This helps you avoid getting ripped off or becoming a victim of fraud. It also ensures that the building you purchase meets zoning requirements and has a valid construction permit.
Check the legal status of the property
When buying property in Thailand, it is important to check that the seller has a legal right to sell the property. This involves checking the land title deeds and comparing them to the records at the local Land Office. It also includes looking for any usufructs or servitudes that may limit the development of the property.
A physical inspection of the property is another important part of property due diligence. This will confirm that the boundaries of the property are well defined and that any buildings on the site have construction permits. It is also important to look into any potential problems with the environment and zoning laws.
Although it is not mandatory to do so in Thailand, acting with due diligence can save you from a number of unpleasant surprises in the future. It is advisable to consult with a professional real estate agent and lawyer, who can conduct the necessary research for you.
Check for any usufructs or servitudes
When buying land in Thailand, it’s important to do some extra investigation before investing. This is called property due diligence and can save you a lot of money in the long run. The process involves checking for building permits, legal issues, and zoning regulations. It also includes conducting a physical inspection of the land.
The best way to ensure that you’re purchasing a property with legal rights is by conducting a title search at the Land Office. This will help you verify that the seller is in fact the owner of the property and that it is free of liens or mortgages.
Performing a physical inspection is another important part of property due diligence in Thailand. This will help you determine whether the boundaries of the property are clearly defined and if they are in line with zoning regulations. It will also confirm that the constructions on the property are in compliance with environmental standards.
Conduct a physical inspection
When investing in a property in Thailand, it’s important to perform proper due diligence to ensure that the legal owner is legitimate and can rightfully sell the land. This includes conducting thorough inspections, assessing any attachments, and evaluating all building construction permits. It is advisable to hire a property practitioner with a strong legal background to conduct the due diligence process for you.
This includes checking the title deed and house registration to determine whether the seller owns the land legally. In addition, it is also important to check if the developer has built on the land without a permit, which could lead to expensive fines and penalties.
Finally, it’s important to perform a physical inspection of the property to make sure that it is accessible and that its boundaries match the title. It’s also important to verify that the property has a sewage system and telephone service. This step can save you a lot of time and money in the future, so it’s well worth doing.