In many cases, a purchaser of real estate will want to have more information about the property they are interested in buying than just what appears on examination of the title deed.
For example, if you are buying a building that is still being constructed, you may want to be sure that the developer has all of the required permits for the project in addition to ownership of the land.
Our Due Diligence Service
In addition to the title search, we will conduct a physical inspection of the land to determine:
- If development has started, we will inspect to ascertain if the land is connected to a public road, and if the boundaries of the land are clear and in accordance to the title deed. This visual inspection can give you additional peace of mind if you cannot be nearby or abroad during development.
- We will also determine the ownership of the parcels of land immediately adjacent the one you are interested in.
- We will inspect whether the property observes the relevant local zoning ordinances.
Inspection of Building Permits
New developments require a number of approvals and official government filings that we can check to ensure that everything goes smoothly with your purchase such as:
- Inspect that the type of development you want to buy is allowed to be constructed in that area. Some areas in Thailand do not permit condominium development, so if you are interested in buying a condominium we will check the restrictions on land use to make sure that a condominium can be developed where the development is advertised. In addition, drainage must be available for all new developments.
- We will also review the construction permit to make sure that it was legally issued and accurately reflects the developer’s current plans.
- We can review a developer’s Initial Environmental Examination (IEE) report filed with the provincial Office of Natural Resources and Environment to make sure that it has been properly filed and approval has been granted.
- It is important to compare the IEE report with the developer’s construction plans, as sometimes the construction plans are changed after the developer received approval of the IEE report.
- For purchasers concerned over parking spots for vehicles, Thai law requires a minimum number of parking spaces with new condominium construction and we can check official records to determine how many parking spaces are planned and if that meets the legal requirements.
Seller or Developer Credential Research
In addition, we can review local court records to determine:
- Whether the seller is previously or currently been involved in any court cases to ascertain whether other buyers have sued the seller in the past for default.
- The seller may have been declared bankrupt their assets due to be liquidated and they will not have a title to transfer to you.
- Whether it is the first time your developer is developing a project.
Prior research of these things could raise a red flag and you may not want to deal with that seller.
It could reveal minor concerns with the paperwork that can be corrected before purchase or in another case, it can mean a world of difference between making a good or bad investment.
TSL Thailand can prepare a due diligence report for you about your intended purchase.
Your due diligence report will include your title search report, pictures of the land, and translations of construction permits or other documents related to the property you are interested in.
Your due diligence report is a snapshot of the legal parameters of the property you are investigating.