If you are buying property in Thailand then consider doing a due diligence on the property and the developer before you sign any agreement. Land fraud and property scams in Thailand could mean the end to your investment so it is always best to obtain the services of a lawyer to check the property first.
The following has to be checked during the due diligence study. Your lawyer would have a full list of what it is that is going to be checked. This is a brief list of the important issues which need to be checked:
Check the Title Deed
This is important. The lawyer needs to check that the title deed on the property does not have a mortgage bond over it and that the seller of the property is the owner of the property. The title deed also needs to be checked to see if it has been used as collateral. This is normally one way of not registering a mortgage bond over the property. There is also the possibility that the title deed might have been stolen.
If the property has been bought off-plan the developer needs to be checked, zoning of the property. Also the lawyer needs to check that all government regulations have been adhered too. This includes the allotment of parking lots, zoning laws, environmental impact assessment, permitting for the build and also that all the plans have been approved by the government. What also needs to be checked are usufructs, superficies and other liens against the property.
The court records need to be checked to see if the owner or developer is in the middle of any litigation or if there are any huge debts which the owner might be battling in the courts. Also check if there is any litigation against the contractor building the development.
The contract also need to be checked. In Thailand any promotional material, letters and emails which you might have between you and developer needs to be attached to the contract. In the event of litigation these can be used as evidence in the case. The contract needs to have all the usual timelines, quality of materials, dimensions of the property – internal and external and also penalties for late completion of the project and an arbitration procedure.
Speak to us today online or call us toll-free from the US or the UK for more information about your due diligence report in Thailand. This is one place never to cut corners – get your due diligence report today!