Importance of Due Diligence
Due diligence is an important part of purchasing property in Thailand. This process ensures that the property is legitimate and the seller has the right to sell it. It includes examining the title and any possible attachments. It is best to hire a strong property practitioner who has experience in property laws in Thailand. He or she can perform a thorough title search and evaluate all building construction permits. This will prevent you from making a mistake and ending up with a sour deal.
Checking the Building Permits
One of the first steps in conducting property due diligence in Thailand is to make sure that the property has a building permit. This is a legal requirement and is necessary to confirm that the property is owned by a registered company. When purchasing a property, the buyer should also ensure that the building permit is issued by a reputable company. Violations of building regulations could result in large fines and even imprisonment. For this reason, it is always best to hire a reputable due diligence service to perform the due diligence for you.
Check the Seller or Developer Credential
A lawyer conducting due diligence for a property buyer can also check for any outstanding taxes or legal issues. The lawyer can also check if the property owner has a construction permit and a house registration number. Each property must also pay property taxes to the District Office. The amount depends on the type of property; commercial properties must pay higher property taxes than residential properties.
Purchasing a property in Thailand will set you back a lot of cash. Therefore, it is equally important to perform your due diligence on the property before you begin to spend any money or before you sign any contracts.