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, how new-build checks differ from resale checks, how long it takes and which red flags mean “stop”.
Contents
- What due diligence is
- New-build vs resale: two different checklists
- Land title (chanote)
- Developer and seller
- Permits and EIA
- Foreign quota
- Encumbrances and debts
- The contract: what to check
- Timeline: from reservation to payment
- Red flags: when to stop the deal
- Remote checks and cost
- Pitfalls
- Case: due diligence saved the budget
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.
It matters what you actually get at the end. The output of due diligence is not a verbal “all fine” but a written opinion (legal opinion or due diligence report) that sets out point by point: who owns the land, which encumbrances are registered, whether permits exist, the quota status, which contract clauses carry risk and what must be fixed before signing. That document sits next to the contract and is what you base your decision on.
The key word is independent. The developer’s or agent’s lawyer protects their side; your lawyer protects yours. Even with a reliable developer and a standard deal, a second pair of eyes costs a fraction of a percent of the price and removes the conflict of interest. How to tell a sound developer from a problem one is covered in a separate guide.
🔗 Choosing a reliable developer: How to choose a developer → · glossary term: due diligence →
2. New-build vs resale: two different checklists
Checking a new-build from a developer and checking a unit from a private seller are different jobs with different document sets. Mixing them up is a common mistake: a resale buyer asks for an EIA, a new-build buyer asks for a debt-free letter — and neither answers the question that matters in their case.
| What’s checked | New-build (from developer) | Resale (from owner) |
|---|---|---|
| Land title | Mother chanote under the project, developer’s rights to the land | Chanote/title of the unit or villa land, transfer history |
| Counterparty | Company in the DBD registry, directors, signatory authority | Owner’s passport, marital status, powers of attorney |
| Permits | Building permit, EIA, condominium registration, hotel licence | Already issued — you check unit registration and designation |
| Quota | Remaining foreign quota in the building | Current owner’s holding form (quota or leasehold) |
| Debts | Usually none — the property is new | CAM, sinking fund, utilities, taxes; debt-free letter |
| Contract | Developer’s SPA: schedule, penalties, conversion, rental | Private sale agreement, settlement mechanics |
| Duration | 3–7 business days with a full set | 7–14 business days if extracts and consents are needed |
On a new-build the main risk is the developer and its permits: the land may be clean, but a build without a permit or EIA won’t be delivered on time. On a resale the main risk is the person and the unit’s history: debts, disputes between heirs, a sale under an over-reaching power of attorney. That’s why both the timeline and the cost of resale checks are usually higher.
🔗 What to watch on the secondary market: Resale vs new-build →
3. 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.
What the lawyer actually does at this step. They request a current extract from the Land Office by title number rather than relying on the copy the seller sent. On the front of the chanote they reconcile the plot number, district (tambon and amphoe), area in rai and square wah, and the plot map. On the back is the entire history of registered actions: transfers, mortgages, leases, easements. An unresolved mortgage or a leasehold registered in favour of a third party shows up exactly there.
For a new-build, the “mother” chanote under the whole project is checked: who owns it (the developer or a related company), whether it’s mortgaged to the bank financing construction, and how the developer’s right to build is documented if the land isn’t its own. For a resale — the chanote of the specific plot under a villa or, for a condo, the unit title.
Weaker titles (Nor Sor 3, Nor Sor 3 Gor and below) aren’t an automatic no, but they call for separate analysis: their boundaries are less precise and some registrations require public notice and a waiting period. For an investment purchase, aim for a chanote.
🔗 How to read a chanote: How to verify a chanote → · chanote in the glossary →
4. 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.
Checking a developer starts with an extract from the Department of Business Development (DBD) registry: who the shareholders and directors are, the registered capital, whether the company is in liquidation, and whether the legal entity in the extract matches the one named in the contract and in the payment details. A gap between the “brand” on the website and the signing entity isn’t a crime in itself, but it needs an explanation: what exactly the signatory is responsible for and who owns the land.
Next comes the track record. Completed projects, actual versus promised delivery dates, what owners say in projects already operating. For VillaCarte Group that’s Layan Green Park: phase 1 of 248 units was completed in 2024 and is fully sold out — units are available only via resale; the numbers are in the phase 1 sell-out case study. For the under-construction Layan Verde (774 residences managed by Dusit, completion 2028), a delivered project by the same developer is the strongest argument in the check: the “promises” have already been tested in practice.
On a resale, you check the person. The lawyer matches the passport to the name on the title and requests a marital status certificate: if the unit was bought during marriage, a sale generally requires spousal consent. If a representative sells under a power of attorney, that POA must explicitly cover the sale of this property and be drawn up to Land Department requirements. Inheritance cases are a separate watch area: until probate is completed, there’s nothing to sell.
🔗 Signs of a problem developer: Developer red flags →
5. 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.
What matters about each document. The building permit is issued by the local administration for a specific project on a specific plot — the lawyer matches the plot number in the permit to the chanote and checks that the permitted height and floor area match what’s being sold. The EIA (environmental impact assessment) is mandatory for projects above a certain scale and for coastal zones; without an approved EIA a large project legally cannot break ground, and “sales before EIA” mean you’re buying a promise. More: EIA in the glossary →.
Condominium registration under the Condominium Act is what turns a building into a set of units with separate titles and a foreign quota. It doesn’t exist yet at the construction stage, which is normal; you check that the developer commits to registering the condominium in the contract and that the building type qualifies. If a property is sold as “apartments” without condominium registration, there will be no freehold quota — leasehold only.
A hotel licence is needed for legal short-term rental. In Phuket this matters for investment programmes: a property without one can only be let long-term. In branded residences under a hotel operator this is handled at project level — as at Layan Verde under Dusit management.
6. 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.
Quota is counted per registered condominium — not per project and not per developer. In a multi-building project one building may be fully used while the neighbouring one still has quota. So the request is precise: remaining quota in the building where your unit sits, as of the check date. The developer’s answer is recorded in writing, and at registration the Land Department issues confirmation.
The second freehold condition that’s often forgotten: the purchase funds must arrive in Thailand from abroad in foreign currency, and the bank must issue confirmation (FET / credit advice) for no less than the unit price, stating the purpose of payment. Without that document, freehold registration for a foreigner is impossible even with free quota. The lawyer checks in advance how payments will be structured so you end up with the full set.
🔗 Ownership forms: Freehold vs leasehold → · foreign quota → · FET and bringing in currency →
7. 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.
On a resale, the key document is the debt-free letter from the condominium juristic person. It confirms the unit has no outstanding common area fees or sinking fund contributions. Without it the Land Department generally won’t register the transfer — so any hidden debt surfaces at the worst possible moment. The lawyer requests it in advance and checks the date: the letter is valid for a limited period.
Mortgages and easements are visible on the back of the chanote. Litigation is checked via the court with jurisdiction over the property and open databases. Unpaid taxes are checked separately: since 2020 Thailand levies an annual land and building tax, and accumulated arrears are also tied to the property.
🔗 How the fees work: Sinking fund and CAM → · condominium juristic person →
8. 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.
The developer’s sale and purchase agreement (SPA) is read in full, not from the sales manager’s summary. What the lawyer prioritises:
- Subject matter. Unit number, floor, area and how it’s measured (with or without balcony), finish and fit-out, what’s included in the price. If the actual area turns out smaller — how the price is recalculated.
- Payment schedule. Whether it’s tied to construction milestones or calendar dates. On an under-construction property with a construction-period instalment plan — as at Layan Verde — this is the key clause: your money should follow progress, not go out as an advance.
- Deadlines and liability. Completion date, permitted extension, the developer’s late-delivery penalty and your right to terminate with a refund if the delay is substantial.
- Holding form and conversion. If you take leasehold — is the right to convert to freehold when quota frees up written in, and on what terms; how the lease is renewed and who pays registration fees.
- Rental programme. For an investment unit — management terms, income split, programme duration and exit mechanics. Yield promises only as “the programme provides”, never as an agent’s guarantee.
- Payment details. Only the account of the selling entity named in the contract. Employees’ personal accounts, “subsidiaries” without a contract and crypto wallets are a stop signal.
Part of the settlement can be structured through escrow — a conditional account from which money reaches the seller once conditions are met. In Thailand it’s not a mandatory standard, but it works by agreement — check availability with the specific developer.
🔗 SPA in the glossary → · escrow → · Reservation and deposit: what you sign before the contract →
9. Timeline: from reservation to payment
A typical new-build sequence looks like this. Durations are a guide assuming a full document set; on a resale each step can take longer.
| Stage | What happens | Indicative timing |
|---|---|---|
| Reservation | A reservation payment locks the unit and price; a short reservation agreement is signed | Day 0 |
| Document request | The lawyer obtains the chanote, DBD extract, permits, draft SPA and quota confirmation from the developer | Days 1–2 |
| Government checks | Land Department extract, DBD reconciliation, permit and EIA status checks | Days 2–5 |
| Contract review | Clause-by-clause comments, list of amendments for the developer | Days 3–6 |
| Opinion | Written report with risks and a recommendation: sign / sign with amendments / don’t sign | Days 5–7 |
| SPA signing and first payment | Only after the opinion and agreed amendments | After the report |
The core principle: the reservation is the only payment before the checks, and it should be refundable or credited to the price on signing. The main first payment under the contract goes out only after the lawyer’s written opinion. If you’re pressed to wire a large sum “by the end of the week or the unit goes” — that’s pressure, not a deal.
🔗 The full transaction process from reservation to registration: Buying process →
10. Red flags: when to stop the deal
Not every lawyer’s remark is a reason to walk away. Some findings are fixed before signing, some change the terms, and some mean “stop”. Here they are by severity.
| Finding | Level | What to do |
|---|---|---|
| Disputed title, land in litigation | Stop | Walk away |
| No building permit / EIA on a large project while sales are running | Stop | Don’t pay until permits are issued |
| Payment details don’t match the selling entity | Stop | Pay only to the account in the contract |
| Building quota used up but freehold is being sold | Stop or revise | Switch to leasehold with conversion, or walk away |
| Unresolved mortgage on the land | Revise | Require release before registration, or settle via escrow |
| CAM/sinking fund arrears on a resale | Fixable | Seller clears before the deal; debt-free letter in the set |
| Inaccurate area in the contract | Fixable | Add a price recalculation formula |
| No late-delivery penalty | Fixable | Add a penalty and termination right |
| Seller’s POA doesn’t name the property | Revise | Require a new POA or deal with the owner directly |
The rule is simple: “stop”-level findings aren’t cured by a discount. If the developer or seller offers to compensate a risk with price, that confirms the risk is real.
🔗 How the common scams work and where the checks catch them: Property scams in Thailand →
11. Remote checks and cost
Due diligence doesn’t require your presence. The lawyer works under a service agreement: requests documents from the developer, obtains Land Department extracts, reads the contract and sends an opinion. For signing and registration in a remote deal a power of attorney (POA) is used, but it isn’t needed yet at the checking stage — only for acting on your behalf.
What to do in advance so the checks don’t drag:
- Get the full set from the developer or agent: chanote, DBD extract, permits, draft contract, quota confirmation, rental programme description.
- Decide on the holding form (freehold or leasehold) — it determines what’s checked on quota and currency documents.
- Agree the payment structure: where the money comes from and in what currency, so the FET set is clear ahead of time.
On cost it’s more honest to talk about order of magnitude than a figure: checking a standard new-build from a large developer is a fixed fee amounting to a fraction of a percent of the unit price; a resale villa with land costs more because there are more documents and requests. The total is always cheaper than any mistake the check prevents.
🔗 How the whole remote transaction runs, including POA and payments: Buying in Phuket remotely →
12. 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.
- Checking “from the seller’s copies”. A copy may be old: an encumbrance registered after it won’t show. Only a fresh Land Department extract.
- Relying on the developer’s lawyer. They protect the developer — that’s normal, but it isn’t your check.
- Forgetting the currency documents. Free quota without FET doesn’t give freehold: the money must come from abroad with the correct purpose of payment.
13. 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.
A second scenario — resale. A buyer chose a unit on the resale market; the seller sent a copy of the title and asked for a deposit “to lock the price”. The lawyer requested a fresh extract and a debt-free letter: it turned out the unit had several quarters of unpaid common area fees, and the seller was acting under a POA that didn’t name the property. The terms were revised: the seller cleared the debt, the owner came to the deal in person, and the deposit went out only after a clean extract. The deal went ahead — without the risk of inheriting someone else’s debts.
Takeaway: due diligence isn’t bureaucracy — it’s insurance. Checking before payment protects both money and nerves. It doesn’t slow down a good deal — it filters out the bad ones.
I’ll arrange a full legal check of the property and deal with an independent Thai lawyer.
Property due diligence
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Sources
Primary sources for this topic. Rates, fees and procedures change — at the time of your transaction check them directly rather than relying on this article.
- Department of Lands, Thailand — title deeds, Chanote, registration of transfers and leaseholds
- Department of Business Development (DBD) — the Thai company register
Informational only, not legal advice; an independent lawyer conducts the check before the deal.
