Buying Property in Thailand: Check First, Sign Later
Anyone planning to purchase a house, villa or condominium in Thailand, or enter into a long-term leasehold arrangement, should carry out due diligence before making any payment or signing any document. A property transaction would also be examined carefully in Switzerland. This is even more important in a foreign country with an unfamiliar language, culture and legal system. A more detailed review is particularly important for foreign buyers because several legal restrictions apply specifically to them.
In Thailand, it is not enough to review only the purchase agreement. It is essential to determine which rights actually exist, who is registered in the relevant official records and whether the intended right can be registered at the Land Office.
Which Checklist Is the Right One?
The appropriate due diligence process depends on the type of property being purchased or used on a long-term basis. Purchasing a unit in a condominium project raises different questions from purchasing a completed villa, entering into a leasehold arrangement or investing in a project that has not yet been built.
This blog series divides the most important due diligence points into three separate checklists.
1. Buying an Apartment or Condominium in Thailand
This checklist is relevant if you intend to purchase a unit in a condominium project.
The main points include:
- condominium registration,
- the Foreign Quota,
- the Thai Quota,
- the unit title,
- the purchase agreement,
- transferring funds from abroad,
- fees and registration of the transfer at the Land Office.
Read the article: Buying an Apartment or Condominium in Thailand: Due Diligence for Foreign Buyers
2. Buying or Leasing a Completed House or Villa in Thailand
This checklist is relevant if you are considering an existing house, a completed villa or a long-term leasehold arrangement.
The main points include:
- the land title,
- the registered owner,
- the building and the land as separate legal rights,
- leasehold rights,
- rights of use such as usufruct,
- the right of superficies,
- legal access,
- encumbrances and servitudes,
- registration at the Land Office.
Read the article: Buying or Leasing a Completed House or Villa in Thailand: Due Diligence for the Land, Building and Leasehold
3. Buying Off-Plan or Developing an Individual Construction Project in Thailand
This checklist is relevant if the property has not yet been completed or is to be built individually.
The main points include:
- the developer or building contractor,
- documents from the Department of Business Development,
- the project land,
- the building permit,
- zoning,
- the Environmental Impact Assessment,
- the payment schedule,
- the construction agreement,
- liability for defects,
- termination rights in the event of delays or project cancellation.
Read the article: Buying Off-Plan or Developing an Individual Construction Project in Thailand: Due Diligence for the Developer, Contractor and Project
Conclusion
Due diligence for a property purchase in Thailand should always be adapted to the specific property and the intended legal structure. The first step is therefore to determine whether the transaction concerns a condominium, a completed house or villa, a leasehold arrangement or a construction project.
The following three checklists help buyers identify the main risks at an early stage and review the correct documents before entering into a purchase agreement, lease or construction agreement.
Note: This article provides a general overview and does not replace legal advice based on the individual circumstances of a particular case.
