Due diligence is an investigation or exercise of care that a reasonable business or person typically expects to take before entering into any agreement or contract with another party or an act that shows a certain standard of care. The main reason to carry out due diligence is to determine whether or not there is associated risk from a particular transaction before entering into a binding contract.
International Business Consultants strongly advise due diligence to be carried out before purchasing land or property in Thailand. In this case, you should commission a title search, or land due diligence to establish the legitimacy of the relevant documents. In most cases, there is little to report, but it is your responsibility to determine the validity of land titles offered.
Land due diligence determines proper and legal title deeds are issued and that no government land has been encroached upon. It will also determine that the seller is the owner of the land and if there are any liens or encumbrances attached to it. The investigation will show any inherent issues that could hinder the enjoyment of the land or the property you are interested in purchasing.
Caveat emptor is Latin for “Let the buyer beware”. Under Thai law, it is the buyer’s responsibility to determine this and to ensure that there are no problems associated with administration, location and title which would prevent, inhibit or endanger construction of premises or the ultimate control of the property. International Business Consultants will carry out a full investigation.
If it is deemed that any part of the land title deed is issued incorrectly, then legally, the government can revoke such a deed, despite purchasing the land with good faith and integrity.