Thai Due Diligence is an important part of the property purchase process in Thailand. This is a process of confirming the material facts of a sale, including a physical inspection of the property, a title check, a review of liens or government permits, and a background check on the seller and developer. Thai Due diligence is especially important for purchasing land, as the complex land registration process increases the risk of scams.
Investigation Before Buying Property
One of the most important steps before buying property in Thailand is to carry out a thorough investigation of the land and the property. This investigation involves checking the ownership of the land, its legal status, and the reliability of the owner. Buyers should also check whether the land is free of liens and other claims by other people. Other important things to look into are drainage issues, road access, and environmental disturbances. Buyers should also ask for a land survey conducted by a reliable chartered surveyor.
The seller is likely to draw up the sale contract, but it’s a good idea to get a lawyer to review it to ensure everything is legally acceptable. The contract should also detail the terms and dates for payment and completion. Also, it should specify any taxes that the seller might impose.
Legal Due Diligence
When buying or selling property in Thailand, it’s essential to perform due diligence to ensure your property is legal and owned by the right person. This includes looking into the owner’s past and checking to see if there are any litigation cases against them. Another important aspect of due diligence is determining whether the property has been mortgaged or is subject to any outstanding debts. You should also investigate the condition of the road access to the property.
Due diligence is crucial for any business, but in Thailand, it’s even more essential to consider the laws, regulations, and business environment before making a decision. In particular, listed companies must be wary of insider trading and must ensure that their due diligence report addresses all relevant legal areas. They must also determine whether the M&A transaction will be treated as an acquisition or a tender offer and whether they will need to disclose information to the stock exchange.
Check Building Permit
Before building anything, you must get a building permit. This is a requirement if you plan to construct a condominium in Thailand. The permits must correspond with the development plan of the developer and the plan must be in compliance with all zoning laws. If a change needs to be made to the permit, the developer must file an application for it. In order to avoid any complications in the future, you should get a building permit prior to beginning your construction.
Building permits in Thailand are important to your investment, and acquiring them will protect you from unlicensed builders. Thailand’s Town and City Planning and Building Control Acts govern the construction of new buildings. Buildings must meet certain regulations regarding superficies, usufructs, and servitudes. In addition, certain types of buildings require a final inspection from the local administrative office.
Benefits of Due Diligence
Due diligence is the process of carefully analyzing a business and its associated risks. It is a vital step before executing any deal or appointing a vendor. It improves the quality of information available to a company and helps mitigate threats. In addition, due diligence improves valuation and pricing, allowing companies to make the necessary adjustments.
Due diligence is often a costly process. If it is not conducted carefully, it may miss key aspects of the business, such as cultural fit. The process also may be slow if a company has to go through multiple committees.