Due diligence in Thailand and the title deed search is a good way to lower the risks of buying a property in Thailand. The land title search in Thailand is very important. If you are considering investing in property in Thailand.
You will need to ask a property lawyer to do a due diligence on the property you are wanting to buy. You will note that there are always risks even when selling property in Thailand. Yet are ven greater risks of buying property in Thailand without a proper due diligence in Thailand. When you buy an apartment in Thailand always speak to our real estate lawyer in Bangkok for assistance.
The very basics of your Thailand due diligence has been listed below. Try to ensure that you can lower the risks of buying property in Thailand unlike others. Also, the reasons why certain aspects of the property need to be checked. This is a very basic list of what you need to check. So speak to us online or in-person for more information about due diligence in Thailand. Contact our real estate lawyer in Thailand who can assist you with this.
Doing your on property in Thailand is not compulsory. However, with very little oversight in Thailand in the property market due diligence should be compulsory for anyone. Not willing to lose his investment due to fraud or other deception. Call us today for more information or walk into our offices in Thailand for a confidential discussion on your property investment plans in Thailand. Remember that lowering the risks of buying a property in Thailand starts with you. This starts with a land title search in Thailand.
This is what you would call the land title search in Thailand. It is always best to have a title deed checked. Most buyers will not buying a condo in Thailand that is not at least a Chanote or a Nor Sor 3 Gor. As noted you need to ensure that the Chanote does not have a time limit registered against it as there is the property on the market which has a limited Chanote as the property was part of the Thailand Land Reformation process where the Chanote was limited being that it could not be sold for 10 years.
There also needs to be a title deed check to ensure that the title deed is correct and was issued correctly. Land scams and property scams in Thailand are not uncommon. You also need to check if there is not a lease registered against the property. Also for a usufruct, a superficies or servitude which would create its own problems. This as the land is then limited to what has been registered against it. Thailand due diligence is very important.
It is always best to check which zone the property is in. If you are buying a condo or house in Thailand in an area that is zoned for industrial. Then you are going to have a problem selling the condo or house later when factories show at your doorstep down the line. You also need to check if there are building restrictions. This as well as regulations for the area the property is located in.
As with the title deed check you also need to see if a usufruct or servitude has not limited the property development. Having a gas pipeline servitude across your property is not a good sign. Just because it is not there. The servitude may be registered against the property and not been executed over the property as yet. This is not uncommon in Thailand either. So ensure that you have completed your property due diligence report and see what your risks will be.
You need to check if there is a mortgage registered against the property. This and any other encumbrances or civil claims could create problems with the transfer process. Has the property been used for security for a debt? Most times the mortgage bond will be paid on transfer of the property to you. The bank will need to be informed when this occurs as they will want to mortgage bond settled on transfer. Your Thai wife might take a mortgage bond on the property in her name.
Had there been any conditions set for the sale of the property the last time it was transferred such as the right of redemption. Was the property given as a gift that might hinder the sale of the property? Has the property been subject to another agreement that you do not know of? It is not uncommon for someone trying to sell the property to 5 other people all at the same time and taking their deposits. Trying to recover the money would be very difficult as litigation in Thailand is very slow and costly. Our Thailand due diligence will lower your risk.
Is the owner of the property insolvent or the company holding the property bankrupt? Is the property in a dispute which you do not know of? These are issues that need to be checked before you proceed with a sale of agreement. You also need to check that the owner has not publicly declared his intention to donate the land to the public. You also need to check that you are dealing with the owner and not a third party.
Is the property in an area where the government is planning expropriation or is the property located on land which encroaches on government land? There also need to be checks made that the property is not located in a property reformation zone where the government is rezoning the land to agricultural land. There also needs to be checks made that the property is not located in an area which is located in a nature reserve or for the public such as a public park. Buying property in Thailand is complex if there is a usufruct over the property.
There will need to be a servitude check as well. This is mainly where you have bought land in the name of your Thai wife. Then registered a superficies over the property and you own the building. The servitude issues are most common in the rural parts of Thailand. There are many roads, power cables and telecommunications cables across properties. You will need to see if you can accept this as most likely it cannot be changed later.
Consider the developer. You will need to ensure that the developer of the property has a good reputation. There are good and bad developers. This is very important when buying off plan. You will need to ensure that the developer has the financial resources to build the project.
Our property lawyer in Thailand will be able to tell you about real estate law as well as how well financed a developer is. Many projects are built on the bases of people buying offplan. The financial crisis’s in Asia arriving from time to time, then many developments stop. Getting your deposit returned becomes near impossible. You should obtain your property due diligence report today and lower your risks of buying property in Thailand.
The information contained on our website is for general information purposes only and does not constitute legal advice.
Due diligence on a property and developer is when you have both checked that they are legal, solvent and that the property has passed its environmental impact studies and zoning laws. You will also need to check that there is no usufruct, superficies, lease agreement or loan against it.
Conditions of Sale
These are the conditions of the sale of the property. It is very important if you are buying off plan as there has to be penalties when the development is late and the next payment from you is due. Bangkok has many incomplete building projects so take care.
Zoning checking is to ensure that your property has been zoned property. Many times in Thailand the building has been built on or overlapping government forest land. The government will simply demolish your property if the house, villa or apartment is built on illegal land.
Title Deed Search
The title deed search is an important step when buying in Thailand as it check that that title deed to registered correctly and that it is a Chanote or freehold title deed. You will also need to see that the property is in the name of the person selling it.