DUE DILIGENCE- WHAT YOUR LAWYER CHECKS BEFORE YOU PAY

The quiet part of the deal that keeps you safe

Due diligence is the stretch where your lawyer checks that the condo is really what it looks like, before your money moves. For a foreign buyer it is also where you confirm you can legally own this exact unit.

Here is what a proper check covers:

• The title (Or Chor 2). Your lawyer confirms at the Land Office that the seller is the true owner and is free to sell, with no mortgage and nothing else registered against the unit, and that there are no court cases hanging over it.

• The building permit and condominium registration. Your lawyer confirms that the building was properly approved and registered as a condominium.

• The foreign quota letter. For a foreign buyer this is the big one. The condominium’s juristic person, which is the management office, issues a written letter confirming the unit sits inside the 49% foreign quota. Without it, the Land Office will not register the unit in your name, even after you have paid.

• The debt clearance letter. Another letter from the juristic person, confirming there are no unpaid common area fees on the unit. The seller has to clear any arrears before the transfer can go through.

• The health of the building. The sinking fund, the monthly fees, any planned major repairs, and whether the management is in good financial shape. You are buying into the whole building, not only your four walls.

• The seller’s documents. ID or passport, the house book (Tabien Baan). If the seller is a company, a few extra company checks apply.

• The building rules. The bylaws on pets, renovations, and whether you can rent the unit out to holidaymakers, so nothing surprises you after you move in.

• What is actually included. Furniture, appliances, and the handover condition, matching what you were shown and promised.

Most of these are simple letters and searches, but each one protects you. And if a seller or agent is slow or vague about handing them over, that tells you something too.

One final check before transfer day: confirm that all utility accounts have been settled and that no outstanding balances will be left behind.

I am not a lawyer, so this is not legal advice. But never let the deposit turn into the full price until every one of these comes back clean.

𝑨𝒏𝒚𝒐𝒏𝒆 𝒄𝒂𝒏 𝒔𝒉𝒐𝒘 𝒚𝒐𝒖 𝒏𝒊𝒄𝒆 𝒑𝒉𝒐𝒕𝒐𝒔. 𝑫𝒖𝒆 𝒅𝒊𝒍𝒊𝒈𝒆𝒏𝒄𝒆 𝒔𝒉𝒐𝒘𝒔 𝒚𝒐𝒖 𝒘𝒉𝒂𝒕 𝒚𝒐𝒖 𝒂𝒓𝒆 𝒂𝒄𝒕𝒖𝒂𝒍𝒍𝒚 𝒃𝒖𝒚𝒊𝒏𝒈.

If you’re curious about what types of villas currently offer the strongest investment potential on the island, you can browse Jane’s latest Koh Samui property listings here.