Due Diligence & Contracts

Red flags include pressure to pay before documents are released, inconsistent seller names, unexplained company or nominee structures, missing title or permit evidence, cash requests, unregistered access, guaranteed returns, verbal lease renewals, unrealistic completion dates, refusal of independent inspection and claims that legal advice is unnecessary. One red flag does not prove wrongdoing, but it justifies pausing until the evidence is independently ch…

A buyer should understand every controlling document before signing. A careful translation can help, but the contract must state which language prevails and discrepancies should be resolved before execution. Machine translation and a salesperson’s summary are not enough for title, default, renewal, tax or dispute clauses. Use a qualified translator coordinated with the buyer’s independent Thai lawyer. The purpose of due diligence is not to make every risk…

For a resale, verify title, seller identity and authority, encumbrances, building documents, tax and fee history, common-fee or estate-fee status, utility accounts, insurance, maintenance records, rental agreements and included furniture. A condominium transfer usually requires juristic-person documents, including debt and quota confirmations. Inspect whether alterations match approvals and whether tenants or managers have continuing rights. Keep due dili…

Review the condominium registration, juristic-person rules, recent accounts, budgets, minutes, insurance, common fees, sinking fund, arrears, major repairs, litigation, rental restrictions and management contract. Inspect lifts, fire systems, water, parking and shared facilities. A low common fee can indicate efficiency, but it can also indicate underfunding. Ask what capital works are planned and how owners will pay. The purpose of due diligence is not t…

The specification should identify materials, brands or performance standards, room sizes, structure, roof, windows, waterproofing, electrical capacity, air conditioning, pool, pumps, landscaping, appliances, smart systems and exclusions. Plans and schedules should be signed and version-controlled. Variation clauses must prevent silent downgrades and explain price adjustments. Marketing renders should not be the only definition of the finished property. Ke…

Define the contractual completion date, permitted extensions, notice, evidence of force majeure, buyer remedies, long-stop date and refund or termination process. Separate practical completion, inspection, correction of defects, handover and legal transfer. A promise to “complete approximately” within a season is not enough. The buyer should understand the consequence if the project is late by months or never reaches transfer. The purpose of due diligence…

Payments should be linked to defined, independently verifiable construction stages rather than vague dates. The contract should state evidence required before each payment, retention, variation control, delay remedies, termination rights and what happens if approvals or finance fail. Check where funds go and whether security, escrow or other protection is available. Never assume a high percentage paid early is normal simply because the project is popular. …

The agreement should identify the parties, property, title, structure, price, payment schedule, due-diligence conditions, completion documents, taxes and fees, possession, risk, default remedies and dispute process. Attach plans, specifications, furniture inventory and disclosure documents. For foreign buyers, include quota, funds evidence and registered-right requirements. The final contract should reflect the transaction actually intended, not a generic …

Confirm that the property has a legally enforceable route from a public road, not merely a track used by agreement. Review registered servitudes, road ownership, width, maintenance, drainage, gates, utility routes and rights for guests, contractors and emergency vehicles. A beautiful villa can become difficult to sell or manage if access depends on a neighbour’s goodwill or an underfunded private road. Keep due diligence independent from the sales team an…

Yes. Coastal, hillside, protected, height, setback, drainage, access and land-use controls can affect what may be built or altered. Rules can vary by location and change over time. A buyer should not assume neighbouring land will remain empty or that a sea view is protected. Confirm the current planning position with qualified local professionals and the relevant authority before valuing development potential. The purpose of due diligence is not to make e…

Obtain the relevant permit, approved drawings, completion or use documents where applicable, and evidence that the actual building matches the approval. Compare floor area, height, setbacks, retaining walls, pools, extensions and changes. An attractive finished villa can still contain unapproved work. The buyer’s lawyer and building professional should identify discrepancies and explain whether they can be regularised before completion. Keep due diligence…

A survey helps compare the title plan with fences, walls, roads, buildings, drains and neighbouring occupation. This matters on hillside, rural, waterfront and irregular plots where a small discrepancy can affect access, setbacks, retaining walls or buildable area. Do not rely only on a developer’s site plan. The surveyor and lawyer should reconcile the physical markers with Land Office records and explain any encroachment. The purpose of due diligence is…