Doing due diligence in Thailand before investing in property can help you find the right place for investment. Some common mistakes are not done by investors, but can lead to disaster. Here are some tips to ensure your investment is a sound one. Make sure you check out the usufructs and servitudes that might exist on your property. A gas pipeline servitude across your property is definitely not a good sign. The pipeline may not have been registered and may have not been executed, but such a servitude is quite common in Thailand.
Land bordering dispute with neighborhood
Performing due diligence in Thailand is mandatory for foreign buyers of property. This involves a comprehensive search for legal encumbrances on the property. You can conduct a physical inspection of the property. If necessary, you can ask the seller for documents pertaining to the legal status of the property. Additionally, you can inquire about sewage systems, telephone systems, and other infrastructure of the property. By following the procedures laid out by the government, you can be assured that you are getting value for your money.
Performing due diligence in Thailand before investing to property is crucial. This means checking whether the property is permitted to be built and whether any litigation cases have been filed against the owner. If the property developer is not registered, you may need to hire a legal expert for assistance. A lawyer will help you resolve common issues and prevent major ones. This way, you can ensure the security of your investment. Also, due diligence in Thailand helps you avoid pitfalls that could make you regret the investment you made.
Company due diligence
When you are planning to invest in Thailand, you must ensure that the property you choose is reputable. A due diligence report will help you identify any red flags that may cause a negative impact on your investment. For example, if you’re investing in property in Bangkok, it’s a good idea to conduct a company due diligence report on the seller before you make any deals. This report can help you find out any liens or pending lawsuits against the property owner.
Due diligence is the process of analyzing specific facts and details about a company or a property before making a purchase. It involves physical inspection and reviewing financial statements to make sure the property is legitimate. It also involves a background check on the owner and developer. Thailand has a high rate of land scams, mainly due to the complexity of property registration. If you’re thinking about investing in Thailand, do your due diligence to ensure that the seller is honest and reliable.
Legality of building permits
If you are interested in investing in property in Thailand, you should understand the legalities of building permits. The laws governing land ownership in Thailand are complicated and open to misinterpretation, especially by experts. You must obtain a building permit before you can start construction. There are also minimum investment requirements. You must invest at least THB 40 million and be approved by the Ministry of Interior to buy land in Thailand.
It is essential to check whether the construction company has the required building permits before you invest in real estate in Thailand. These legalities can help protect you from being cheated by unlicensed builders. As a rule, developers must obtain a building licence from the administrative office of the locality. Moreover, certain types of buildings must pass a final inspection by the local administrative office before they can start the building operation.
Before buying a property in Thailand, foreigners should check the land for servitudes. These are liens on land for the benefit of another property. In Thailand, the most common servitude is over the land’s title deed. To find out whether your property is free from servitude, read our article on Chanote titles. Also, be sure to check the superficies agreement to see if there is one.
If a property is stuck in the middle of the road, it may have a servitude. While this is rare, it’s worth checking. A property with access to the main road is a tempting prospect, but a high voltage power cable running across it isn’t. Similarly, a property with no access to a main road might be a burden. To avoid servitudes, be sure to check the property’s title deed and find out if any are registered against it.