Real estate due diligence in Thailand is a common practice for Thai lawyers, being recommended for entrepreneurs who want to acquire real estate in Thailand. Real estate due diligence consists of a detailed study of the real estate a client intends to acquire; this study is undertaken by a lawyer who is qualified to establish that legal status of a real estate will not be a liability for the buyer.
Similarly to company due diligence, real estate due diligence in Thailand confirms the material aspects of a property sale. This implies physically verifying the real estate, effectuating a title check and reviewing government permits. Also, it can consist of making a background check of the real estate seller or developer. Due to the complex method of property registration procedures, real estate due diligence in Thailand also protects the buyer from any scams which sometimes occur in this country.
Real estate industry in Thailand
According to a reputable real estate agency, the property market in Thailand was forecasted to increase with 5 to 10 % in the entire country in 2016, mainly in Greater Bangkok, due to the investments in infrastructure projects made by the Thai government. Real estate in Thailand has represented an attractive industry for entrepreneurs and developers in the last years, despite certain legal political issues which might have created some reservations.
Real estate due diligence effectuated by our Thai lawyers
When effectuating a real estate due diligence, our lawyers in Thailand will research the documents of the property, as well as the other legal issues concerning the seller and the real estate that he or she is selling, such as:
• checking the documents;
• researching the seller’s or developer’s credentials, reviewing local court records to establish if the seller has been involved in any court cases, if the seller has been declared bankrupt or if it is the developer’s first project;
• inspection of the building permits, in order to ascertain if the type of development which will be bought is allowed to be built in that area, reviewing the construction permit, the developer’s Initial Environmental Examination (IEE) report, comparing the IEE report with the developer’s building plans and so on.
If you want to acquire a real estate in the Land of Smiles, please get in touch with our Thai lawyers, who can offer you the appropriate advice on this matter. We can provide real estate due diligence procedures in Thailand, as well as other legal services related to the purchase of a property in this country.