When you are buying real estate in Thailand, conducting due diligence can be essential to ensure your investment is sound. Due diligence can be performed on several aspects of a property, including its legal and financial status. Having a property due diligence report will allow you to learn about issues surrounding the property, its developer, and more.
Title Deed Search
Obtaining a copy of a title deed is one of the best ways to verify the legal title of a property. Thai laws recognize three types of title deeds: Sor Kor 1, Nor Sor Kor 2, and Sor Kor 3. Sor Kor 1 is a notification of ownership that notifies others of the land’s existence. Sor Kor 2 also allows long-term dwellers to apply for a higher title deed. Other common types of land titles include the Right of Habitation, which allows the owner to live in a dwelling without paying rent.
A title deed search is a crucial step when purchasing a property in Thailand. This process helps you confirm that a property is free of liens and encumbrances. It can also indicate whether or not the seller has the legal right to sell it. Additionally, it can indicate the ratio of Thai and foreign ownership for a condominium. A company like Mahanakorn Partners Group will compile all of the relevant documents and confirm the details with the Land Department.
Financial and Legal Aspects
Due diligence is essential when purchasing property in Thailand. The process should be conducted prior to signing any contract to protect foreign investors’ rights. For example, the buyer should check to see that the seller is legitimate and that the property is located in a legal jurisdiction. It is also important to check out the adjacent parcels of land and any initial environmental examination report.
Due diligence is a process of investigation and analysis that can protect both the buyer and seller from any risks. The process is a necessity, and it is crucial to understand all of the financial and legal aspects of the property.
Protection from Fraud and Scams
Whether you are buying or selling a property in Thailand, conducting due diligence is essential to avoid any potential fraud or scam. This involves checking the building permits, any litigation cases against the owner, and whether the land is mortgaged. By conducting due diligence, you can be assured that your investment is safe and protected.
Due diligence can be performed by a reputable law firm or by you personally. A reliable law firm can carry out the investigation for you and check the status of the property and its owner to avoid scams.