Importance of Due Diligence in Thailand
Due diligence is a legal procedure that is used to ensure that everything involved in a business deal is above board and will not cause any problems with the transaction. This includes performing a property inspection and conducting a title deed search before making any purchases.
This is a vital step in any investment, especially when it involves real estate in Thailand. You can save yourself from a lot of headaches and expenses by ensuring that you do your due diligence correctly.
In order to perform a due diligence, you need to find an attorney who is well-versed in the legal aspects of buying and selling properties. These attorneys will be able to verify the property’s legal status and check if there are any legal encumbrances or rights attached to it.
You will also need to ensure that the land has not been encumbered by any of the following: Mortgages, lease agreements, or loans. This is because these can lead to legal problems in the future.
It is also a good idea to check the property’s zoning laws. This can prevent you from purchasing an unsuitable property or paying for a plot of land that is not allowed to be developed.
During the due diligence process, you will also need to make sure that the developer of the property is trustworthy. You will need to ensure that they have passed all of their environmental impact studies and zoning regulations. This will also protect you from any potential lawsuits in the future.
The property can also be inspected to check for drainage problems, road access, and disturbances in the environment. It is also a good idea to ask about the phone and sewage systems so that you can make sure they are functioning properly.
You will need to know that there is no land ownership that has not been registered by the local land office, which means that this can be adjusted or nullified at any time. This is why it is essential to have the title deed of the property inspected to ensure that it has been registered correctly.