Glossary, buying process

Due diligence in Thai property

Due diligence is the set of legal and physical checks a buyer makes before committing to a property: who owns it, what is registered against it, whether it was lawfully built and whether the seller can deliver what the contract promises.

In Thailand the core of it is a title search at the land office. Your lawyer obtains the official copy of the deed and confirms the type of title, the registered owner, the plot area, and any mortgage, lease, servitude or court order recorded against it.

Around that sit further checks, depending on the property:

Access: a public road, or a registered servitude over neighbouring land.
Permits: zoning, the construction permit and, for larger projects, EIA approval.
The seller: company records, directors, litigation and insolvency searches on a developer.
Condominiums: availability in the foreign quota, the juristic person's accounts, the sinking fund and unpaid common fees.
The contract: whether its terms match what was advertised.

Use a lawyer you choose and pay yourself. One introduced and paid by the developer or agent has a conflict of interest. Make the deposit refundable if the checks turn up a defect the seller cannot cure.

See title deeds and due diligence and the off-plan buying process.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to due diligence

Chanote (Nor Sor 4 Jor): A chanote is Thailand's full land title deed, issued by the Department of Lands for a plot whose boundaries have been surveyed and fixed with numbered marker posts. It is the strongest form of land title in the country.
Land office: The land office is the local branch of the Department of Lands where title deeds are held and every sale, lease, mortgage and other right over property is registered. A transfer of Thai property takes legal effect only when it is registered there.
Environmental impact assessment (EIA): An environmental impact assessment is a study of a project's effect on its surroundings that must be approved before construction can start. In Thailand it is required for residential buildings and condominiums with 80 or more units or 4,000 square metres or more of usable floor area.
Condominium juristic person: The condominium juristic person is the legal entity, created when a condominium is registered, that manages the building's common property for all unit owners. It collects fees, enforces the by-laws and is run by a manager under an elected committee.