August 2, 2022

Importance of Property Due Diligence in Thailand

When buying property in Thailand, it's important to conduct Thai due diligence to ensure that the property is as advertised and as good as it sounds. Listed below are a few tips to help you conduct Thai due diligence properly. This article will explain the importance of a Thailand title search and physical inspection as part of Thai due diligence, and give you tips on how to negotiate a discount with a developer. Keep reading for more tips!

Importance of physical inspection as part of due diligence

Performing property due diligence in Thailand requires a thorough examination of a property and its owner. Apart from asking about the owner's credibility and the legality of the property, it also involves checking the condition of the property and its sewage system, telephone system, and other infrastructure. It is important to perform due diligence to avoid being scammed by a scam artist. Listed below are some steps you can take to perform property due diligence in Thailand.

A building permit is one of the most crucial steps in property due diligence in Thailand. This document verifies that the property is owned by a registered company and has been approved for construction. Before selling the property, the owner must submit a building permit to the Land Registry. In addition, the buyer should verify that the permit has been issued by a registered company. In Thailand, violating building control regulations can lead to heavy fines and imprisonment. To avoid pitfalls such as these, it is best to use a reputable property due diligence service.

Importance of title search as part of due diligence

When buying real estate, you should make sure that the seller holds legal title to the property. This can be verified by performing a Thailand title search at the Land Office. The property's title should match the description of the land on the Land Office records. Additionally, the due diligence report should contain details on the history of the property's ownership. A map of the property is also important for property due diligence.

It is also important to check for any existing usufructs or servitudes. A gas pipeline servicing the property is not a good sign. It isn't uncommon for property owners to have several claimants. You can hire a Thai property lawyer to perform this research. These professionals have access to court records and can perform background checks on the property, developer, agent, and seller.

Land Office's responsibility for due diligence

The Land Office in Thailand is responsible for property due diligence. They maintain a folder that contains relevant information about the property. The folder will contain information about the property's owner, including his or her address and telephone number. The lawyer who is responsible for due diligence should make a visit to the Land Office in the area of the property in order to review this folder. Because Thailand is an ancient country, the Land Office uses paper documents to keep all its records.

Besides checking if the property is in the right ownership, property due diligence also includes finding out the legal status of the current owner. It is important to do the due diligence process to avoid falling prey to scammers and ending up disappointed. Due diligence is a crucial step in buying property in Thailand. Using a reliable firm with strong legal background is the best way to avoid such pitfalls. These lawyers will thoroughly investigate the title and any building construction permits that are associated with the property.

Negotiating a discount with a developer

Before you begin negotiating with a developer in Thailand, you should first understand their culture. Thais are incredibly relaxed and take their time when it comes to completing complex tasks. While this may seem counter-intuitive, it is important to understand that Thais value patience and do not like confrontation. While the western world tends to reward aggressiveness, Thais do not. As a result, if you want to establish long-term business relationships with developers, you must be realistic and patient.

A good way to convince a developer to reduce their price is to purchase multiple units from a developer. Many developers are more than willing to negotiate a price with a group of purchasers when they are buying several units. While this is not always possible, it is a great way to get a discount from a developer. If you are buying multiple units, it is even better - developers are more likely to negotiate a discount if it means they can get a higher profit on their sales.

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