Due diligence is defined as the exercise of the proper degree and care in the performance of an act as demanded by the circumstances. It is a concept usually encountered in contract law as some conditions found in agreements require the performance of a certain degree of precaution. Purchasing property in Thailand is no exception as unscrupulous dealers and developers have been known to victimize unsuspecting foreign investors. The failure to conduct the proper care in ensuring that the property sought to be purchased is what the seller claims it to be usually results in dire and tragic consequences on the part of the buyer. Therefore, it is strongly advised that any would be investor prepare and ensure that proper steps have been taken to protect his or her interest.

The need for due diligence begins prior to the contract negotiation stage. The necessary background and title investigations provide the preliminary foundation for any secure purchase and ensure that the parties deal with each other in a fair and even handed manner. Moreover, physical inspection of the property is a must for every foreign investor as this provides invaluable information regarding the property premises such as building defects and the like. As to the negotiation proper, the practice of due diligence may yield valuable information which may serve as a bargaining tool in acquiring better concessions from the seller such as a lower selling price. Most importantly, it serves as an early warning device to caution buyers against any underhanded scheme taking place thereby allowing them to discontinue with the purchase before spending a significant amount of money.

In conclusion, the best insurance a potential buyer may have in securing his interest in real property is the exercise of due diligence. The efforts exerted during the early stages of the purchasing process far outweigh the grief and anxiety experienced when a purchase agreement goes awry. For every potential buyer then, let the old adage that “an ounce of prevention is worth a pound of cure” be their guide to every purchase.