Property law | simple purchase checklist 
Whenever dealing with land in Thailand the land title deed needs close scrutiny and the seller must provide complete copies of the title deed (s) to the land. Following you must make sure the property is what the title deed says and the title deed is all checked out. Proper legal advice should be sought before engaging in any real estate transactions.
The land due diligence process, to be conducted by a professional could include the following:
- Investigation into the land title deed (nor.sor.3/ nor.sor.3 gor, or khor, nor.sor.4.jor (Chanot)) and history at the local land department's branch office (is the title deed legally issued).
- Assure there are no encumbrances registerfed against the land (e.g. mortgage, right of redemption, lease, servitudes, usufruct, other charges or claims, powers of attorney).
- Is the owner not involved in any civil or criminal cases (bankruptcy and Civil Court search on the owner).
- The previous use of the land and possible use of the land (e.g. any building or other restrictions and present use in zoning, according to what planning and zoning tells you).
- Has the land ever been rented out or is anyone in occupation on the land.
- Investigation with the Land Department about; land taxes, registered value and previous sale and transfer date.
- Any drainage problems on the land or subsidence.
- Physical inspection of the land to ascertain access to the land (e.g. dirt roads on hill sides become inaccessible during the rainy season)
- Confirm there is public or registered private road access to the land.
- Is the land connected to the main utilities such as water and electricity? (how do you get electricity hooked up), water availability is essential.
- Trash disposal (how will you get rid of it), sewage disposal, telephone and cable.
- Are there any problems with the local Thai residents, noise nuisance or other disturbances from surrounding land, drainage problems, or problems with access to the land?
Other points:
- Who will be responsible for transfer or registration fees
- Consider a land survey to confirm the size of the land (will the current owner of the land allow access to the land for the purposes of a survey).
- Nor.sor.3 land cannot be transferred the same day bit requires a 30 day announcement, during which disputes could arrise regarding ownership and bounderies of the land.
- How long have the current owner(s) held title over the land.
- A 35-degree slope is considered the legal limit for construction on hillsides, and an 8-degree slope is about the limit when concerning building economically.
Buying into planned developments in Thailand seems somewhat safer than building yourself, but it is not. Let the buyer beware applies more to buying into a planned development than just about anything else. First of all the majority of developments in the tourist areas are not government licensed project (if any at all). These projects do not have to comply with minimum contract standards and consumer protection.
The following should be checked by a professional familiar with real estate development in Thailand:
- The land Title Deed (has the main land been sub-divided and has a separate title deed been issued);
- Compliance with the requirements under the Land Allocation Act;
- Environmental Impact Assessment approval report (if applicable);
- Building Permits;
- Housing or Condominium Development License;
- The sales structure under which the project is sold (land lease and ownership over the house);
- How long has the developer been developing properties in Thailand;
- The registered share capital (liability of the developer)
- Which construction company has been contracted to build the houses;
- Can the purchaser instruct an independent building surveyor to inspect the build upon completion;
- How many houses are being built in the project and could the view be blocked by new construction;
- Will the developer take care of the registration of the house in the foreigners name with the relevant government departments and the house registration booklet (Tabian Baan);
- Will the developer connect the land to public utilities and apply for the installations of separate meters in the purchaser's name;
- Who will be responsible for transfer or lease registration fees and if applicable "Housing and Land Tax';
- Will the property be delivered free from all encumbrances, mortgages, charges and other liens;
- If any, what services will be provided;
- Are the service contracts for the benefit of the developer only or the benefit of the buyers in the project. Contracts could be structured pro-seller. Project management and maintenance contracts could be impossible to get rid of and could put a significant extra financial burden on the lessee for the duration of his lease
- How is the monthly or yearly maintenance and service fee in the project calculated;
- Is the authority to hire or reject service facilities with the owners in the project, or with the developer/ developer's management company;
In an approved housing development project the sale contracts must be approved by the housing development committee and have minimum consumer protection (e.g. only up to 50% of the transfer fees may be passed on to the buyer), most smaller housing developments can go either way, pro seller or pro buyer.
Related:
- Paying in escrow for your property
- Buying an apartment (not registered condos)
- Maintenance contracts and leasehold
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