August 2, 2022 - Attorneys in Phuket

Doing due diligence in Thailand before investing in property can help you find the right place for investment. Some common mistakes are not done by investors, but can lead to disaster. Here are some tips to ensure your investment is a sound one. Make sure you check out the usufructs and servitudes that might exist on your property. A gas pipeline servitude across your property is definitely not a good sign. The pipeline may not have been registered and may have not been executed, but such a servitude is quite common in Thailand.

Land bordering dispute with neighborhood

Performing due diligence in Thailand is mandatory for foreign buyers of property. This involves a comprehensive search for legal encumbrances on the property. You can conduct a physical inspection of the property. If necessary, you can ask the seller for documents pertaining to the legal status of the property. Additionally, you can inquire about sewage systems, telephone systems, and other infrastructure of the property. By following the procedures laid out by the government, you can be assured that you are getting value for your money.

Performing Thai due diligence before investing to property is crucial. This means checking whether the property is permitted to be built and whether any litigation cases have been filed against the owner. If the property developer is not registered, you may need to hire a legal expert for assistance. A lawyer will help you resolve common issues and prevent major ones. This way, you can ensure the security of your investment. Also, Thai due diligence helps you avoid pitfalls that could make you regret the investment you made.

Company due diligence

When you are planning to invest in Thailand, you must ensure that the property you choose is reputable. A Thai due diligence report will help you identify any red flags that may cause a negative impact on your investment. For example, if you’re investing in property in Bangkok, it’s a good idea to conduct a company due diligence report on the seller before you make any deals. This report can help you find out any liens or pending lawsuits against the property owner.

Due diligence is the process of analyzing specific facts and details about a company or a property before making a purchase. It involves physical inspection and reviewing financial statements to make sure the property is legitimate. It also involves a background check on the owner and developer. Thailand has a high rate of land scams, mainly due to the complexity of property registration. If you’re thinking about investing in Thailand, do your due diligence to ensure that the seller is honest and reliable.

Legality of building permits

If you are interested in investing in property in Thailand, you should understand the legalities of building permits. The laws governing land ownership in Thailand are complicated and open to misinterpretation, especially by experts. You must obtain a building permit before you can start construction. There are also minimum investment requirements. You must invest at least THB 40 million and be approved by the Ministry of Interior to buy land in Thailand.

It is essential to check whether the construction company has the required building permits before you invest in real estate in Thailand. These legalities can help protect you from being cheated by unlicensed builders. As a rule, developers must obtain a building licence from the administrative office of the locality. Moreover, certain types of buildings must pass a final inspection by the local administrative office before they can start the building operation.

Servitude checks

Before buying a property in Thailand, foreigners should check the land for servitudes. These are liens on land for the benefit of another property. In Thailand, the most common servitude is over the land’s title deed. To find out whether your property is free from servitude, read our article on Chanote titles. Also, be sure to check the superficies agreement to see if there is one.

If a property is stuck in the middle of the road, it may have a servitude. While this is rare, it’s worth checking. A property with access to the main road is a tempting prospect, but a high voltage power cable running across it isn’t. Similarly, a property with no access to a main road might be a burden. To avoid servitudes, be sure to check the property’s title deed and find out if any are registered against it.

Nor Sor 3 Kor

Nor Sor 3 Kor Transfer of Title Dewd in Thailand is a legal document which grants the owner of land the rights to sell, lease, or mortgage it. It contains a detailed description of the land and its history of relevant transactions. The Nor Sor 3 document is one of the most common forms of land ownership in Thailand. Although it is a legal document, it is not the same as a real title deed.

Nor Sor 3 is an updated form of Nor Sor Saam (3 Gor). It is issued by the District Land Office and sets the boundaries of a plot of land. Aerial surveys are conducted to determine the exact boundary lines of a Nor Sor 3 parcel. No legal act related to the land is required to be published. A Nor Sor 3 can be subdivided into several smaller plots.

Chanote

A chanote is the type of title deed that gives the landowner full ownership of a plot of land. This type of deed can be used for many different purposes, including leasing, selling, and transferring land. This type of deed is also great for protecting property from interlopers. Generally, landowners must use their land for the purposes for which it was originally purchased. If they don’t, the Land Department can repossess the land for up to five years. With a chanote, the Land Department is more likely to encourage development, which will increase the land’s value.

The chanote type of title is preferred for property transfers in Thailand. This type of title provides full ownership of land and allows the land owner to sub-divide, transfer, and assign. This type of title is most commonly used in condominiums and provides the highest level of accuracy in measurements. Before applying for a chanote title, you must first obtain a Nor Sor 3 Gor, which is a legal document that determines the exact boundaries of a plot of land.

Sor Kor Nung

In Thailand, a Sor Kor Nung is a legal document that notifies the owner that they possess land, but does not officially confirm that they own it. Upon receipt of the document, the land holder can start using and occupying the land. This document can be transferred to another person or transferred via inheritance. Eventually, the land holder can upgrade his or her Sor Kor Nung to a Nor Sor 3 Gor or Nor Sor 4 (Chanote) document.

The Land Department issues 6 major title documents for individuals: a temporary occupation license, an occupation right, and a notification of possession. These documents all relate to land that is owned by the government, so these documents do not truly indicate who owns the land. Although these documents are legally valid, they do not indicate who actually owns the land. If you are interested in owning land in Thailand, you can consider purchasing a Nor Sor 3 land plot.

Por Tor Bor Ha

A PBT5 or Tor Bor Ha Transfer of Title Deed is a legal document that proves that you have been occupying a piece of land. You may have paid taxes on it, but you are not the owner of the land, so you cannot build or use it for farming or recreational purposes. A PBT5 can be upgraded to a Sor Khor 1 title.

Upon transferring ownership of a piece of land in Thailand, you must get the correct documentation. In addition to the title deed, there is also a Sor Kor Nung, which notifies you that you are the owner of a plot of land. In some cases, this title deed is not valid in Thailand, but you can still claim it by filling out the Kor Sor 1 form.

Day: August 2, 2022

Doing Due Diligence in Thailand