A beautiful render and an attractive price mean nothing if the property has problems with title, permits or quota. Due diligence — the legal check before payment — is the buyer’s main budget protection, especially in a remote deal. Here’s a step-by-step checklist: what to verify in the title, permits, quota and contract so the deal is clean.
Contents
1. What due diligence is
Due diligence is an independent check of the property and deal before payment. A Thai lawyer runs it: requests documents, cross-checks the Land Department, reads the contract and flags risks. The goal is to confirm you’re buying what’s stated, from someone with the right to sell, free of hidden encumbrances.
🔗 Choosing a reliable developer: How to choose a developer →
2. Land title (chanote)
The foundation of the check is the land title (chanote, Nor Sor 4 Jor):
- The land belongs to the seller/developer.
- No disputes, mortgages or encumbrances.
- Plot boundaries match the documents.
- The relevant construction is permitted on the land.
A problem or disputed title is a stop signal for the whole deal.
🔗 How to read a chanote: How to verify a chanote →
3. Developer and seller
- Developer (primary): delivery track record, financial strength, land rights.
- Seller (resale): are they the owner, no over-reaching power of attorney, spousal consent (if applicable).
VillaCarte Group is a developer with a Phuket portfolio (completed Layan Green Park phase 1), which lowers risk.
4. Permits and EIA
| Document | Why |
|---|---|
| Building permit | Construction legality |
| EIA (environmental) | Mandatory for large/beachfront projects |
| Condominium license | For unit registration and quota |
| Hotel license | For legal short-term rental |
Missing key permits are a serious risk, especially beachfront.
5. Foreign quota
For freehold the lawyer checks the remaining foreign quota (49%) in the specific building. If quota is used up, full ownership can’t be registered — only leasehold. This affects both the deal form and the price.
🔗 Ownership forms: Freehold vs leasehold →
6. Encumbrances and debts
- Mortgage/lien on the property or land.
- Arrears on common area fee, utilities, taxes.
- Easements and use restrictions.
- Litigation around the property.
A previous owner’s debts can attach to the property — they’re found before the deal.
7. The contract: what to check
- Unit specs and area.
- Payment schedule and late-handover penalties.
- Ownership form (freehold/leasehold) and the conversion right.
- Rental program and payout terms.
- Payment details — to the developer, not personal accounts.
8. Pitfalls
- Skipping checks for a discount. “Act today” — with no due diligence.
- Trusting renders. You check documents, not pictures.
- Payment to personal accounts. Only contract details.
- Ignoring the quota. Critical for freehold.
- Skimping on a lawyer. One day of checks is cheaper than months of trouble.
9. Case: due diligence saved the budget
Consider a typical scenario. A buyer was about to wire a large deposit to a project with a polished deck. During due diligence the lawyer found building permits weren’t yet issued and the land title had a disputed encumbrance. The deal was paused and funds stayed put. The buyer switched to a developer with a proven track record and a clean title.
Takeaway: due diligence isn’t bureaucracy — it’s insurance. Checking before payment protects both money and nerves.
I’ll arrange a full legal check of the property and deal with an independent Thai lawyer.
[ Enquiry form: property due diligence ]
Informational only, not legal advice; an independent lawyer conducts the check before the deal.