Doing Property Due Diligence in Thailand

Doing Property Due Diligence in Thailand involves a thorough investigation and document review. It also involves questions about the legal status of the property, the reliability of the owner, and other infrastructure, such as sewage and telephone system. For a successful property purchase, due diligence is essential. Read on to learn more. - Tips on Doing Property Due Diligence in Thailand


There are many reasons to do property due diligence before you buy in Thailand. It's important to ensure that the property you're buying is legitimate, and that the seller has the authority to sell it. It's also a good idea to inspect potential attachments such as usufructs. A strong property practitioner with a legal background will be able to give you a thorough title search and evaluate all building construction permits.

Before buying property in Thailand, you should check whether there are any usufructs or servitudes on the property you're interested in. For example, if there's a gas pipeline running across the property, it might not be registered or executed. Regardless, you should look for any discrepancies between the law and the property records to avoid being ripped off. This may lead to problems down the road.


Due diligence is a vital aspect of buying real estate in Thailand. While the law allows a buyer to direct register their ownership and transfer rights of immovable property, it is often too late to avoid losing money. As a result, it is important to conduct your own research before you make your decision. Here is a checklist of things to do when doing property due diligence in Thailand. In Thailand, property law is found in the civil and commercial code (B.E. 2559), land law code (B.E. 2497), tax code (B.E. 2559), build control act (B.E. 2532), and Phuket city's Office of Natural Resources and Environmental Policy and Planning.

The first step in property due diligence involves selecting a property that is within your budget. You will then need to inspect the building to check the quality of construction and maintenance. Take note of common areas as these can degrade over time, and whether they're up to standard. Be sure to check for any litigation against the property as this may affect your ownership. If you don't know whether a developer is legally obligated to keep the property, you will not be able to fully determine if you should buy it.

Physical inspection

Performing physical inspection when doing property due diligence in Thailand is crucial to ensure that the property is as described on the property deed. Apart from checking the property's condition, due diligence also involves examining the seller's financial statements and business practices. Depending on the location, due diligence may also include checking the property's telephone and sewage systems, and whether the boundaries line up with the property deed.

If the property has been developed, the first step in conducting due diligence in Thailand is to check the land title deed. A building permit is a vital document which certifies that a property is registered with the Land Registry and is approved for construction. Before purchasing the property, the owner must have obtained a building permit and submit it to the Land Registry. The buyer must verify that the building permit was obtained by a legitimate company. Any violations of building control laws will result in heavy fines and jail time.

Legal assistance

Thai law provides the parties with the right to directly register ownership and transfer rights for immovable property. However, some buyers are not able to follow due diligence and end up losing money. The laws of Thailand are spelled out in several codes, including the land law code (B.E. 2497), the civil and commercial code (B.E. 2559), the tax code (B.E. 2522), the build control act (B.E. 2522), and Ministerial Regulation Nr. 20 (B.E. 2532). Additionally, the Department of Public Works and Town & Country Planning (Phuket) and the Office of Natural Resources and Environmental Policy and Planning in Phuket are both located in B.E. 2554.

In addition, buyers should consider the developer's reputation and financial standing. Property scams in Thailand are common. To protect yourself from such a scenario, you should verify that the developer is financially viable and has the experience to complete the project. Because many projects are built on the concept of people purchasing off-plan, it is not uncommon for the developer to encounter financial problems. As a result, recovering your deposit becomes almost impossible. Using legal assistance when doing property due diligence in Thailand can reduce the risk of these problems.

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