In Thailand, due diligence is an essential aspect of the purchase process. This is because it can help you avoid any legal snafus that may occur when you buy a property. It also helps you make a good investment decision and save you money in the long run.
Definition of Due Diligence in Real Estate
Real estate is a popular investment for many people around the world. It can be a great way to increase your savings and get the financial freedom you need in life. However, it can also be a very risky venture.
It is important to conduct proper due diligence before purchasing any immovable property in Thailand. This can help you identify any potential legal issues that might arise when you use the property in question as your primary place of residence or business.
What is Due Diligence in Thailand?
In short, due diligence is the process of examining and researching any specific facts about a property to ensure that it meets your needs. This is often done by a professional who will investigate the target property to gather all of the information that will be useful to you before deciding whether or not to purchase it.
When conducting your due diligence, it is important to check the title deed to verify that it is correct and free from any encumbrances. You should also check the status of any liens and mortgages that might be attached to the property. This can be a big factor when it comes to your ability to sell the property in the future.
Another important part of real estate due diligence is to check whether the property is zoned for industrial usage. This is because you might not be able to sell it later if it’s located in an area that has lots of factories. You should also check whether the property is subject to building restrictions or zoning regulations.
If you are buying off plan, it’s important to look into the developer and their reputation. A good developer should have the funds to build the project and should be able to keep up with their obligations. If they don’t have enough funds, it could lead to the project falling apart and you losing your deposit.
A professional lawyer will be able to find out all the details about a property and provide you with an in-depth report that can lower your risks. This can save you time, money, and stress in the long run.
When performing your property due diligence, it is important to check the land description in the title deed to make sure that it is correct. This is because there are some scams out there whereby the seller will tell you that the property is larger than it actually is.
You should also inquire about the infrastructure of the property, such as sewage and phone systems. This will help you determine if the land is reliable and safe to live on.