Due Diligence in Thailand

In many cases, you will want to have more information about the property you are interested in buying than just what is on the title. For example, if you are buying a building that is not yet built, 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. If you want more than just a title search, Siam Legal can prepare a due diligence report for you about your intended purchase.

In addition to the title search, we will conduct a visual inspection of the land to determine if development has started, if the land is connected to a public road, and if the boundaries of the land are clear. This visual inspection can give you additional peace of mind if you cannot be nearby during development. We will also determine the ownership of the parcels of land immediately around the one you are interested in and the relevant local zoning ordinances.

New developments require a number of approvals and official government filings that we can check to ensure that everything goes smoothly with your purchase. For example, we can make sure the type of development you want to buy is allowed on the land. Some areas of 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 can review a developer’s Initial Environmental Examination (IEE) report on file 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construction plans, as sometimes the construction plans are changed after the developer received approval of an outdated IEE report. We will also review the construction permit to make sure that it was legally issued and accurately reflects the developer’s current plans. 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.

In addition, we can review local court records to determine if the seller is involved in any court cases. If other buyers have sued the seller this could raise a red flag and you may not want to deal with that seller.

In some cases, our due diligence can raise minor concerns with the paperwork that can be corrected before purchase. In other cases, due diligence can save you from making a bad investment.

Your due diligence report will include your tile 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.