Due diligence is the exercise of the proper degree of care in the performance of an act as warranted by the circumstances. It is a Civil law concept usually encountered in contract law. This concept has also found its way in real estate law due to the numerous instances where real property buyers have been led into thinking that a particular property is what it is claimed to be. The application of due diligence begins prior to the signing of any contract. Background checks and title investigations concerning both the seller and the land sought to be purchased must be made in order to properly ascertain the claims of the seller. Furthermore, these acts have the tendency to unearth other issues not known to both parties such as obscure yet pending claims. Moreover, delving into the history of the land would also yield most if not all the titles and deeds associated with the parcel of land. In summation, all of the hard work and dedication associated with a successful and diligent purchase of property is made prior to the signing of a contract.
A thorough physical inspection of the property is essential. This includes verifying that the land is connected to a public road, the boundaries are clear and match the title deed, and the property complies with local zoning ordinances. If the property is under construction, the quality of the construction work is also assessed.
Inspection of Building Permits
It’s crucial to ensure that the property has all the necessary government approvals and filings. This includes checking that the type of development is permitted in the area, reviewing the construction permit to confirm it was legally issued, and ensuring the developer has complied with all requirements, such as the architectural plan certified by a licensed architect and engineer.
The Initial Environmental Examination (IEE) report, which assesses the environmental impact of the development, must be filed and approved by the provincial Office of Natural Resources and Environment. It’s important to ensure that the IEE report is consistent with the developer’s construction plans.
Legal Requirements for Parking Spaces
In Thailand, there are legal requirements for the number of parking spaces in new condominium constructions. This must be verified against official records to ensure compliance.
Seller or Developer Credential Research
Researching the seller or developer’s credentials is also a part of due diligence. This includes checking local court records to determine if the seller has been involved in any legal disputes or has been declared bankrupt, which could affect their ability to transfer the title.
Due Diligence Report
Siam Legal International offers to prepare a comprehensive due diligence report that includes a title search report, photos of the land, translations of construction permits, and other relevant documents. This report provides a snapshot of the legal status of the property.
The due diligence process in Thailand is designed to protect the rights and interests of foreign investors and ensure that their property investments are secure. It is a complex process that requires a deep understanding of Thai property law, and it is advisable to engage with a reputable legal firm to navigate this process.
For more detailed information and to ensure that all legal parameters are correctly addressed, it is recommended to consult directly with a property lawyer in Thailand.