Foreigners involved in buying commercial or private real estate property is recommended to perform Due Diligence. Due Diligence in Thailand is a thorough investigation of a property prior to signing a contract. This is an investigation done prior to your intended purchase of land or real estate. This will provide the potential buyer more information about the property he is interested in buying. In the Due Diligence process, a potential buyer evaluates a target asset such as land or building in a thorough manner before its acquisition.
In the case of the intended purchase of a land in Thailand, Due Diligence helps the buyer know more information about the property as it will include a visual inspection. It will attempt to provide answers to key questions such as how do we buy, how do we structure the acquisition, and how much do we pay before any final transaction must be made. It determines if the type of development you want is allowed on the land. It will also show the restrictions on land use, check if permits are legally issued and accurately reflects for what it is declared.
Since due diligence requires a thorough examination of a potential acquisition of a land by a buyer, it will show pictures of the land and a clear snapshot of the legal parameters of the property you are interested in. This might include inspection of the land to determine if development has started, if the land is connected to a public road, and if the boundaries of the land are clear if there are relevant local zoning ordinances, and the ownership of the parcels of land around the one you are interested in.
In the case of acquiring a building that is not yet built, due diligence will provide you report if the developer has all the required permits for the project in addition to ownership of the land. There will be a review of building systems to evaluate deferred maintenance items that can materially affect the operation and value of a property. Due diligence helps determine the lease terms currently enforced, the zoning laws applicable to the property, building code compliance of the premises, the existence of any special assessments of property taxes applicable to the property, and the sales price history of the property.