Due Diligence Services

If you’re looking to purchase real estate in Thailand, it's important to confirm if the seller is trustworthy and the property is legitimate. Failure to perform the right checks may lead to ownership disputes, scams, or even legal trouble. By conducting due diligence, you gain valuable insight into your desired home or potential investment, allowing you to learn more about the property beyond what’s outlined on the title deed.

However, performing due diligence alone is difficult and risky, which is why you need the help of a professional Thai property lawyer at Siam Legal. As a full-service law firm with over 20 years of expertise in assisting foreigners with property purchases in Thailand, our lawyers have the skills and knowledge to handle the due diligence process on your behalf and ensure a swift and secure transaction.

Continue reading to learn more about our due diligence services and how you’ll benefit from using us as your property lawyer.

Siam Legal’s Due Diligence Service

Due diligence involves more careful investigation than title searches, which are important but not the only precaution you have to consider. Siam Legal’s property lawyers go beyond verifying the true ownership of the property. Our team will also check if the owner has the legal right to sell the property in question and uncover any hidden encumbrances such as mortgages and liens.

Here is a breakdown of how our due diligence services work.

Physical Inspection of the Property

As part of our due diligence process, we will perform a physical inspection of the property you intend to buy and, if applicable, its access to a public road. We also check that the property is not currently occupied by a third party, to prevent ownership delays or disputes. A physical evaluation of the property gives you peace of mind during the development process, especially if you’re currently abroad or aren’t sure what to look for.

Inspection of Building Permits

An important document that needs to be checked is the property’s building construction permit, which highlights zoning rules, building regulations, and whether a structure is allowed to be built in the current location. Some areas in Thailand have zoning restrictions that forbid the construction of condos and other types of property.

Violating zoning laws can lead to fines, forced renovations, or even property forfeiture. By inspecting the building permits, our lawyers will prevent future problems from arising after ownership is transferred.

Assessment of the Seller or Developer’s Credentials

Another component of our due diligence process involves our lawyers evaluating the credentials of the property seller or developer and checking to see if they appear in any court records. This can reveal details about the seller or developer’s history, such as:

• Whether the seller has been sued by other buyers in the past or is currently involved in any court cases

• If the seller has declared bankruptcy and their assets are awaiting liquidation

• If there are any issues in the paperwork that can be corrected before submission

Our assessment informs and protects you from hidden risks tied to the seller or developer, so you know whether it's safe to move forward with the transaction. We conduct this research to safeguard your investment and protect both your rights and interests.

What could go wrong if you don’t conduct due diligence on a Thai property?

If you skip the due diligence process before signing the purchase agreement, you put yourself at significant risk. Certain information about the property, such as zoning restrictions, boundary definitions, and liabilities, may remain undisclosed without a thorough evaluation.

Without due diligence, you may also risk:

• Involvement in property disputes, leading to lengthy legal battles, significant costs, and high stress.

• Zoning violations leading to fines, forced renovations, or even seizure.

• Ownership of property with strict boundary limitations prohibiting you from making desired changes.

• Invalid or unenforceable transactions. If the seller is bankrupt, the court may freeze their assets, which can delay or cancel your purchase. If their assets are due to be liquidated, they may be unable to transfer their title to you.

To avoid these issues, get professional legal assistance from Siam Legal’s experienced property team and make certain the due diligence process is conducted effectively. Without support from our lawyers, you might overlook key details of the property or make mistakes that can land you in trouble with the law.

Due Diligence in Thailand FAQs

When should due diligence on Thai property be performed?

Due diligence should be conducted before you sign the contract. You need to ensure you’re well-prepared and know all the risks before completing the sale and purchase agreement, or you risk getting stuck with a property you don’t want.

Why is it important to check for hidden encumbrances on properties in Thailand?

"Encumbrances" include mortgages, liens, registered leases, and other third-party claims that could affect your ownership rights or limit how you can use the property. Sometimes encumbrances are only visible after performing title searches and due diligence on the property and its seller. If you don’t know about them and go through with buying the property, you might become responsible for a debt you didn’t incur.

Our legal team will conduct a comprehensive review of the property's legal status to identify any existing encumbrances or outstanding obligations. This process ensures that you are fully informed before proceeding with the transaction, protecting you from future disputes, unexpected financial liabilities, or restrictions on using the property.

How do Thai zoning laws affect my property purchase?

Due diligence can be used to reveal the specific zoning laws that apply to the property, which will determine what activities or developments are legally permitted on the property. Our team will investigate the applicable zoning regulations for the property in question, helping you understand whether your intended use, such as building, renovating, or operating a business, is permitted.

This is especially important in Thailand, where certain zones have strict rules governing land use, building height, density, and environmental impact. Purchasing property without confirming zoning compliance can expose you to serious risks, and identifying these issues in advance helps you avoid costly mistakes. For example, a Thai condominium constructed above the legal height limit could face legal challenges, forced demolition, or even government seizure.

Professional Due Diligence Services from Siam Legal

Before buying real estate, you must ensure that you know what you are getting into if you want to avoid scams, fines, or a useless property. Due diligence is a crucial part of any property purchase, as it helps identify potential red flags and shows you what to expect when dealing with the seller.

With Siam Legal facilitating your real estate purchase, you will receive an accurate due diligence report that informs you of everything you need to know about the property and its seller. Our report covers the full due diligence process and uncovers essential property details. This provides transparency regarding the property in question, allowing you to make a concrete decision without worrying about surprises.

Contact Siam Legal and book a consultation with our property lawyers today to ensure a safe and risk-free property purchase with peace of mind.