It is highly important that you as a buyer of a certain property should first know everything about it before making any commitments, paying any amount or signing any contracts. This is to make sure that the property, the owner or the attached documents do not have any hidden encumbrances that may cause you to spend more than what it should be for the property through court fees and other expenses.
The property buyer should be very certain that the property is really worth the purchase.
Siam Legal does its own system of Due Diligence in a distinct way. Aside from doing a Title Search, the firm does the following as standards in doing Due Diligence.
- Physical Inspection
A nicely developed but unconnected to a public road property is not really ideal more so if it is a prime development with quality materials being used but such development is not permitted on the said locality.
To avoid these scenarios, we include physical inspection of the property and relate what is actually found to what is indicated in the Title Deed. The firm also checks the ownership of the surrounding plots as well as do an investigation if the said development adheres to local zoning ordinances.
- Checking of Building Permits
Developers cannot simply choose which land to develop and start construction while its marketing arm start selling the yet to be developed units without obtaining relevant permits and gaining the approval from authorities.
We eliminate the risk of its client buying a property on a restricted area for such development by studying the land use restriction of the locality and check whether it is the same area with what was advertised. This includes reviewing of the Initial Environment Examination (IEE), if it was properly filed and if indeed approval was given.
Also, especially for new developments, there must be functional and up to standards drainage systems in place.
Furthermore, checks on the construction permit of the developer will be done in order to be certain it was legally obtained and the plans of the developer do reflect with that of the permit i.e. construction plans is still the same with the IEE report after gaining the approval.
If the subject property is a condominium, the applicable law requires the allotment of parking spaces and we will check whether the number of parking spaces adheres with the law by correlating its number to that of what is required by law.
- Seller or Developer’s background search
Not because the developer is a widely known company in Thailand that buyers should immediately buy their developments as a thorough background search should be done first regardless of company name and reputation.
This background search will include researching through court records and determine whether the developer is previously or currently involved in a court case i.e. if some buyers in the past have had sued the company for certain infarctions. The firm will also check if the developer did not ever filed for bankruptcy in the past.
It can even be a possibility that the units being sold by the developer do not have the appropriate title that the developer should transfer after the completion of payments and so Siam Legal will check this concern too.
Any red flags, either minor or major ones, that the Due Diligence work will uncover should be taken seriously by the buyer as these can spell whether the he will be making a very good or very bad investment if ever he pushes for it.
So after carefully doing Due Diligence, we will then provide you with a complete report which includes the following to allow its client to have a thorough study of the property, the developer and his whole property investment experience:
- Title Search report
- Photos of the property
- Translated copies of the permits and other important documents