Property Due Diligence in Thailand

Property Due Diligence in Thailand

Purchasing property can be a significant investment, whether it’s for personal use or a commercial venture. This is especially true when the property is in a foreign country such as Thailand. There are many aspects to consider before finalizing a real estate transaction in Thailand, with property due diligence being one of the most critical steps.

Due diligence is the comprehensive appraisal of a business or a piece of property to establish its assets and liabilities and evaluate its commercial potential. This guide will provide an overview of the necessary steps for conducting property due diligence in Thailand, including physical inspection of the property, checking building permits, and conducting research on the property seller or developer.

Physical Inspection of the Property

When buying a property in Thailand, a thorough physical inspection is a crucial part of the due diligence process. This ensures that the property’s physical state aligns with the description given by the seller or real estate agent.

Begin by assessing the overall condition of the property. This includes structural integrity, plumbing and electrical systems, and any potential damages that may require repair. In some cases, it may be wise to hire a professional property inspector to make sure no detail is overlooked.

Inspect the property surroundings as well. Take note of the neighborhood, access to amenities, and any potential noise or nuisance issues. For properties located in flood-prone areas, it’s also advisable to check flood histories and local drainage systems.

Check Building Permits and Land Title Deeds

Building permits are essential to ensure that the property is legally constructed. It’s important to check that the building complies with the approved construction plan. Non-compliance could result in legal penalties and difficulties in reselling the property.

In Thailand, land title deeds are the most common evidence of land ownership and are the only ones that can be registered for the purpose of real estate transactions. The type of title deed also indicates the legality of the land in question. It’s essential to ensure that the property seller holds a legitimate title deed to the land on which the property stands.

Additionally, for condominium units, verify the foreign ownership quota. Under Thai law, foreign ownership of condominium units should not exceed 49% of the total space of all units in the condominium project.

Property Seller or Developer Research

Just as important as inspecting the property itself is conducting an in-depth background check on the property seller or developer. This step ensures that the party selling the property is legitimate and financially stable.

If the seller is an individual, verify their identity and their right to sell the property. If the seller is a company or a developer, check their financial stability, track record, and reputation. Check for any pending legal disputes or complaints from previous customers.

You should also verify that the property is not mortgaged or used as collateral for any loans. This information can be obtained from the local Land Department. For a more comprehensive investigation, consider hiring a local attorney or real estate professional familiar with Thai property laws and regulations.


Undertaking due diligence when buying property in Thailand is a comprehensive process, involving physical property inspection, checking building permits and land title deeds, and researching the property seller or developer. This thorough examination can save potential buyers from financial risks and legal complications down the road.

Remember that while this guide provides an overview, the process may involve other legal complexities depending on the property’s specific circumstances. Therefore, it’s advisable to seek professional advice or legal assistance when conducting property due diligence in Thailand. It’s a worthy investment to ensure a secure and successful real estate transaction.

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