Due diligence checklist for property buyers | Bangkok Post: business

CORPORATE COUNSELLOR

Any time you acquire property, you face certain legal risks. Whether you acquire the property through a merger and acquisition of a corporation that holds property, or through a direct acquisition (such as land purchase), unforeseen legal problems can arise. Some common problems faced by real property buyers or transferees include eviction issues, restrictions on land use, or restrictions on building construction.

If you plan to acquire any immovable property in Thailand, before completing the purchase you should conduct due diligence to ensure that the seller is the legal owner and has the right to sell the property to you, and to check for any legal encumbrances or attachments.

In practice, a property practitioner with a strong legal background can conduct real estate due diligence for you by reviewing copies of the land documents (such as the title deed [chanote], Nor Sor 3 Gor etc), checking for building construction permits, and conducting a title search at the Land Office where the land is located. More specifically, you should ensure that you receive a comprehensive due diligence report, including the following material details and information.