If you are considering buying property in Thailand, then having a due diligence report done on the property is always a good idea. The attorney will check the zoning, development background checks and all other documents such as the environmental impact study as well as check the title deed on the property. There have been problems in the past in Thailand with title deeds being fake or the property being encumbered.
Due Diligence
Title Deed Search
This is an important step as there are always issues with the title deeds. See the list of title deeds you can find in Thailand and also consider that foreigners are best advised to buy a property with a Chanote title. Also ensure that the property is not encumbered as the Thai government did give away Chanote property a few years back however the owners could not sell the property for 10 years. The title deed in Thailand should also be checked that it is authentic as there have been problems in Thailand where the developer built on government land.
The property development in Samui many years back where title deeds had been given that did not legally exist is still fresh in people’s minds. Always ensure that you have done your due diligence report.
Zoning
This becomes important as you do not want to live in a residential area that has an undeveloped industrial area next to you. Zoning is also important as an entertainment venue might be built next to your property which means noise and traffic jams on weekends as well as at night. These are all the questions you will need answered. If you are looking for long term investment, then this is paramount to your investment.
Developer
How financially sound is your developer? You should consider this as there are many properties in Thailand that was built offplan and many people have lost their deposits with the development that never materialized. When it comes to building offplan then the transaction become very speculative and the risk is always very high. If you are looking at investment off plan then the developer is an important part of your decision. Always look for well-established developers in Thailand if you are going to buy offplan as the risk decreases if it is a well-known developer.
Encumbered Property
Another issue is that of encumbered property. These can range from a mortgage bond which is still registered over the property as well as a usufruct registered over the property or a long term rental agreement which you might not have known about. These will not be good when taking occupation of the property.
If you have bought land in the name of your Thai wife then these could also be a servitude registered over the property for a road, electrical cable or other type of encumberment. Always ensure that these have been checked before you buy or sign an agreement to buy the property.
There also other issues to look at such the flood zones in Bangkok which is something you will need to look at as well as what type of changes they made for flood mitigation. You can see more on this website about the flood zones in Thailand and what developers have done for flood mitigation.
