3 TYPES OF DUE DILIGENCE SERVICES
Due diligence reports can be positive or negative, it helps you decide when to commit to an agreement. Also, it can change over time;
- Business due diligence
- Property due diligence
- Contract validations
1. BUSINESS DUE DILIGENCE
Business due diligence provides a deep background of a person or a business to ensure you know your customer or contracting party and fully understand them. We focus on financial and commercial profiles, including potential legal problems and other legal-related issues, to inform you of the possible risk.
For the business due diligence in Phuket, at minimum, the following information needs:
- Financial statements include capital investment and outstanding liabilities (tax, rent, monthly wage payments). In some cases, we found a business with two million capital investment operates a one billion project which is nearly impossible to complete as described in advertising.
- The business structure includes shareholders and directors, voting, and dividend rights.
- Business reputation, public judgment on goods or services, and lawsuits history.
Learn more about the limited company in Thailand >
2. PROPERTY DUE DILIGENCE
Purchasing a property in Phuket is very popular with foreigners, especially villas and yachts. In some Western countries, when transferring ownership of property like real estate, the law obliges the parties to use the services of a public body or representative to protect the buyer by making due diligence compulsory.
Unfortunately, such a system is not applied in Phuket, and due diligence needs before a transaction, a minimum of property due diligence are as follows.
- Ownership and legal status of the property include registration documents, a title deed, bordering, access (easement rights or servitude), zoning, and building permit. For condominiums, the license must be verified to ensure that freehold and leaseholder rights can be registered for legal protection.
- Encumbrances to be sure that the property is free and clear of any liens, pledges, claims, and any other limitations.
- Possible legal matters and legal execution in relevant like unresolved legal disputes.
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3. CONTRACT VALIDATIONS
Ensuring that all contracts are legally binding under Thai law, also international law in case of international trade, whether the sale of goods or services. To prevent the possibility of voiding the contract. The minimum contract validation needs to be validated as follows;
- Legal capacities, such as the authority to enter into a deal. Making a deal with a minor or married person in some transactions required the content of a related person or court order.
- Contract objectives must not be prohibited by the law, especially public order, good Thai morals, or impossible to execute.
- Compulsory forms set forth by law include a vocable contract, a written contract, or registration at the due administration.
Learn more about how to make a contract in Thailand >