Thai Property Due Diligence Review
When you purchase an asset, it should be remembered that you could be faced with some legal dangers. No matter if you purchase the property via an acquisition or merger, or through a simple purchase of land Legal issues can be raised in any situation. There are a few frequent legal issues people confront when purchasing immovable property in Thailand. This is why it is essential to do your due diligence prior to buying a home to make certain that the individual who is selling the property is actually the legal person who owns the house and has the authority to sell the property. Additionally, you must also be sure there aren't any legal encumbrances that are attached to the property. Typically, buyers hire attorneys or property experts who conduct a background check of the property, by looking over the copies of documents that are attached to the property. They as well conduct a title check in Thailand. If you're looking to buy a home in Thailand and you are planning to purchase it, make sure to create a due diligence report to prevent any liability or losses that may arise in the future.
What exactly is due Diligence in relation to a property?
Due diligence in the case of the property could be described as the analysis and research conducted by a business or an individual in order to plan a business investment. It's the extra security measure that a reasonable person should take prior to signing an agreement with a different party. Thus, using proper diligence before entering into any deal with a different material could save you from liabilities and risks. If you are acting using due care, it is important to be sure that the details of the transaction or agreement aren't in violation of Thai laws, and that the information contained in the contract aren't incorrect.
Importance of Due Diligence for Property Purchase
If you are buying a house located in Thailand, it is essential to make sure that you're doing it responsibly to avoid facing negative consequences. Because investing in property can involve significant amounts of money, it is not wise to be in danger of not exercising proper diligence when you enter into an agreement with a different person. It is crucial to remember that there are numerous fraudsters today who manage to steal cash from investors who fail to check their contracts with diligence. A thorough review of a contract prior to buying a house and taking into consideration due diligence could protect you from mental, financial, and legal troubles.
Important Things To Consider when conducting a Thai Property Review with Due Diligence
There is a myriad of aspects to be considered when conducting a due diligence review of an agreement between two people concerning the purchase or sale of an investment house in Thailand.
- It is important to ensure that the construction is in accordance with building regulations and environmental regulations. For this, it is important to verify that the buildings built on the land have been given permission to construct.
- Also, you should determine if there are any legal proceedings being filed with the property owner. property that is in any way connected to the property you are looking to purchase. If there's any outstanding debt due to the owner and the property mortgaged, then it is recommended to not purchase the land.
- According to Thai law, a piece of land may be leased for more than three years, provided that it is legally written and is registered. When buying land, be sure that the property isn't leased to another individual or that there are no tenancy rights attached to the land. This is essential since a lease cannot be dissolvable upon an exchange of ownership from one owner to another.
- It is crucial to determine whether the person who is selling you the property is legally authorized to sell the property. You must ensure that the seller owns the property as the true owner and is not committing fraud on you. So, the descriptions of the land included in the title document should be identical to those listed in the documents held at the Land Office.
- Include an illustration within your report on due diligence. The map will outline the area of land and its surrounding region.
- Also, you should check the historical records of the property ownership on the property. Check to see if the ownership transfer was made to the owner in a legal manner.
- Check that the property you plan to purchase is accessible to the public highway or else it could cause a lot of hassle for you. If the access is on an area owned by someone else, access rights must be recorded to avoid problems in the future.
- It is crucial to be aware of the value that is assessed by the government for the property you're planning to purchase by selling it to the owner. Most often, it is the case that the vendor reveals an amount higher for this property purchaser than the property is actually worth, and without doing any research, the purchaser is forced to pay the difference for the property to the vendor. In these situations, it is important to exercise due diligence to stop the seller from committing fraud with you. Contact the relevant authorities to verify the authenticity of the information you obtained about the property, as it needs to be registered with the office of the land.
- Also, you must be sure that you understand the rights and obligations of the various properties in the process.
- In addition to the above points In addition to all above, it is important to inspect the land and include information about the property in your Due Diligence Report. Pay attention to the location of the land to confirm that it's the exact property you signed a contract to purchase, and also that the seller isn't engaging in fraudulent business with you. The location of the land must be in line with the location mentioned in the land document.
Hire a Thailand Property Lawyer
It is wise to hire a top law firm located in Phuket, Thailand that provides a variety of services created to safeguard your rights as an international buyer who wishes to purchase or acquire properties in Thailand. Such a Phuket law firm offers a broad variety of property-related services that best meet both foreign as well as Thai clients' requirements regarding the property.