10 things to look for in a Thai property due diligence review
Due diligence is the difference between owning a registered condo and funding someone else's legal problem. Before any deposit, verify the seller, the title, the building, and the money trail. A structured review answers whether the seller is the legal owner and whether the unit is legally salable.
At Thai Visa Centre in Bangkok, we refer clients to property lawyers for due diligence before visa-linked purchases. This checklist covers the ten essentials every foreign buyer should confirm. Start with our property lawyer guide and property law hub for full process context.
Due diligence confirms the seller owns the unit and can legally transfer title.
Standard condo review; higher for company sellers or off-plan projects.
Document collection, Land Office search, and written lawyer report.
Department of Lands holds title records and encumbrance searches.
What is property due diligence?
Due diligence is a structured legal and factual review before you bind yourself in a sale and purchase agreement. It confirms seller identity, clean title, foreign quota availability, and proper funding documentation. Official records live at the Department of Lands and the condominium juristic person office.
Key point: Real estate agents facilitate sales. Licensed property lawyers verify whether the transaction is legally safe. Agents optimise for closing speed. Lawyers optimise for whether you should close at all.
The 10 due diligence essentials
Each item below should appear in a written due diligence report from your lawyer. Missing any one can block Land Department registration or expose you to seller fraud.
Seller identity and authority
Confirm passport or company registration matches Land Department records. If selling through an agent, verify power of attorney is specific, notarised, and current.
Title deed type and authenticity
Inspect the Chanote (Nor Sor 4 J) or appropriate condominium title. Compare deed number, area, and floor with the physical unit you inspected.
Encumbrances and mortgages
Title search must show no unresolved mortgage, lien, court order, or pending litigation. Redeem mortgages before transfer, not after your payment.
Foreign ownership quota
Under Section 19 of the Condominium Act, foreign ownership is capped at 49% of sellable area in each building. Verify quota remains before deposit.
Condominium Act registration
Confirm the project is registered as a condominium with the Land Department, not merely an apartment building marketed as a condo.
Building permits and completion
For off-plan or recent builds, check construction permits, occupancy status, and whether the developer can legally transfer units today.
Common fees and arrears
Review CAM fees, sinking fund contributions, and any outstanding juristic debts attached to the unit. Unpaid fees can block transfer at Land Office.
Developer track record
Research prior project completion, litigation, and financial stability. Off-plan buyers need default and refund clauses in the sale agreement.
Tax and transfer fee allocation
Clarify who pays transfer fee (2%), stamp duty, withholding tax, and specific business tax if owned under five years. Ambiguity causes transfer-day disputes.
FET-form funding trail
Foreign buyers must remit purchase funds from abroad and obtain a Foreign Exchange Transaction Form from a Thai bank. Confirm transfer wording matches Land Department requirements.
Timeline and typical cost
Budget 15,000 to 40,000 THB for standard condo due diligence. Company sellers, off-plan projects, and disputed titles cost more. Request a written quote before work begins.
| Phase | Duration | Notes |
|---|---|---|
| Document collection | 1 to 3 days | Seller provides title deed, juristic letters, and building documents. |
| Land Office title search | 3 to 7 business days | Lawyer confirms ownership, encumbrances, and deed category at DOL. |
| Written report | 1 to 2 days | Lawyer issues findings and flags deal-breakers before you sign SPA. |
Who performs due diligence?
Licensed Thai property lawyers conduct title searches and issue written reports. Verify licensing on the Lawyers Council of Thailand website before engaging counsel.
Contract review complements due diligence. Read our contract review guide before signing any SPA.
FET-form funding and foreign buyers
Foreign buyers must remit purchase funds from abroad in foreign currency. The Thai receiving bank issues a Foreign Exchange Transaction Form. Due diligence includes confirming your bank transfer wording matches Land Department requirements. The Bank of Thailand publishes exchange documentation rules.
Coordinate FET timing with your visa application timeline if retirement bank proof overlaps with purchase remittances.
Common due diligence mistakes
These errors appear repeatedly in Bangkok and resort-city property disputes involving foreign buyers. Most are preventable with early lawyer engagement and independent title search before any deposit.
- Relying on developer brochure instead of juristic foreign quota letter
- Skipping title search on resale because the seller looks honest
- Paying deposit before due diligence completes
- Ignoring tenant occupancy because active leases survive sale
- No visa plan for managing the asset long-term after purchase
Frequently asked questions
General answers for expats researching Thai property due diligence. This is orientation, not legal advice for your specific transaction.
Q:Is due diligence mandatory by law?
A:Not legally mandatory, but prudent and standard for any foreign buyer. Banks and sensible lawyers require it before large transfers.
Q:Can I do due diligence myself?
A:Land Office searches require Thai language and legal knowledge. Hire a licensed property lawyer registered with the Lawyers Council of Thailand.
Q:Does due diligence guarantee no future problems?
A:It eliminates known defects at purchase date. It does not prevent future juristic mismanagement or market loss after you own the unit.
Q:When should due diligence start?
A:Before paying any deposit or reservation fee. Early review is cheaper than litigation after you transfer millions of baht to a seller who cannot transfer title.
Q:What documents does my lawyer need?
A:Title deed copy, seller ID, juristic foreign quota report, building registration, and sale draft. Off-plan adds developer licences and construction permits.
Q:Does due diligence cover contract review?
A:Title search and contract review are related but separate workstreams. Commission both before signing the sale and purchase agreement.
Q:What if due diligence finds a problem?
A:Walk away or renegotiate before binding deposit. A subject-to-due-diligence clause in the SPA protects refund rights if title or quota fails.
Q:Which official registry confirms title?
A:The Department of Lands (DOL) maintains national title records. Your lawyer searches the branch responsible for the property district.