Buying a property in Thailand can be a costly endeavor. It's a good idea to perform due diligence on the property you're thinking of purchasing before you actually make a deal. This helps you avoid scam artists and fraudulent dealers.
One of the first steps in due diligence is a good title search. This is where a lawyer can verify if the property is free from any liens. This is important as Thailand has a high rate of land scams. It's also worth looking at any building permits that may have been issued for the property you're thinking of buying. The right building permit will give you an accurate picture of what the property is actually like. If the building permits aren't in order, you could end up paying a substantial fine.
Another important property due diligence item is a land title deed. This symbol of full ownership is very important because it enables the property to be transferred. If the property has an unregistered usufruct, however, it may not be possible to sell it. The land title deed is also the top-of-the-line item in the list of property due diligence items.
In addition to the title deed, you should also make sure that the property is free from any encumbrances. This includes mortgages, servitudes and other issues. Checking these things will prevent you from buying a fraudulent property.
It's also worth investigating the building construction permits and any outstanding taxes. If you own a condominium, you should make sure that the permits are in order and reflect any changes in construction that have occurred. If you're buying a property for commercial use, you'll have to pay a higher property tax.
The title of a property can also be clouded by other things like superficies, servitudes and other legal issues. These can have a negative impact on the value of the property. A good property practitioner will conduct a thorough title search to make sure that you're buying a legitimate property.
Other property due diligence items include asking about the land's infrastructure and reliability. You'll want to make sure that there are no issues with the property's phone system, sewage system, or road access. You should also make sure that the seller is legitimate. Having a legitimate property is important for any buyer, especially if you're buying from a foreigner.
The property due diligence report should also include a small map of the land. This will allow you to get an idea of what the property is like and how the land is laid out. You should also make sure that the title deed is legit and that it's the right one for the property. It's also a good idea to look at the land's registered value.
In addition to the title deed, a property due diligence report should also include the details of other factors that can have a significant impact on the property's value. This includes the developer's background, government permits, and other relevant legal issues.