How Property Due Diligence Works in Phuket?

First of all, in this article, property due diligence means all types of immovable property. Such as land, houses, condominiums, and other commercial buildings, both developed and undeveloped. In this article, we focus on basic knowledge regarding land and building due diligence. In case you are looking for a clear idea about buying land or a condo in Phuket.

Western and Thai

In some Western countries, during the process of transferring ownership of 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.

But, in Thailand, the parties can directly go to the competent administration to register the ownership or rights in an immovable property transfer. Consequently, some buyers take the risk of engaging without performing competent and comprehensive due diligence and unfortunately lose a lot of money.

Law Relevant to Property Due Diligence

Keep in mind that in Phuket, the land and/or building use restrictions are under the laws listed below with the relative Ministerial Regulations:

1) Land Law Code (B.E. 2497).
2) Civil and Commercial Code Book 1 to Book 4.
3) Tax Code (B.E. 2559).
4) Build Control Act (B.E. 2522).
5) Ministerial Regulation Nr. 20 (B.E. 2532) concerning the Build Control Act (B.E. 2522).
6) Department of Public Works and Town & Country Planning of Phuket (B.E. 2554).
7) Office of Natural Resources and Environmental Policy and Planning (B.E. 2553).
8) Condominium Act (B.E. 2551) in the case of purchasing a condominium.

That is why a property due diligence checklist or commercial due diligence checklist is needed. So, what’s the truth?

Key Points to Verify

Most importantly, due diligence is not only to be done on the title deed, the building, or the owner or holder of the immovable rights. But it also certifies the legal relationships between them and third parties. In order to understand this matter, there is more to understand. In our opinion, 10 Key Points have to be at minimum checked.


Business due diligence
Property due diligence
Contract validations

Sorts of Land Title Deed

The land title deed allows certain private uses and grants certain rights to use, possess, own, or transfer rights by freehold and leasehold. There are 4 Titles to be considered. First, the Nor Sor Si Djor (Chanote). Second, the Nor Sor Sam Kor (N.S.3.Kor). Third, the Nor Sor Sam Gor (N.S.3.Gor). And the final one, the Nor Sor Sam (N.S.3).

Property Due Diligence Example Issue

The land or building due diligence report towards the title deed will show all historical transactions. For example, the encumbrances are servitude or a mortgage. If some real rights exist but are not duly registered. As a new owner, you have the right to dismiss these invalid rights (Section 1299, paragraph 1, of the C.C.C.).

The building also has to be free of any debt or charges. As well as other restrictions of private or public law other than the usual easements. To avoid future legal litigation, the construction must correspond to the permit issued.

In the presence of condo projects, rules, and regulations are stronger. Surprisingly, some developers use the word “condominium” only for marketing purposes. And at the end, not only the condominium license won’t be issued, but the unit will also be unregistered under your name as a condominium freehold or leasehold.

In the presence of land and buildings, the owners of both can be different. In this case, every asset and every owner shall be subject to due diligence and deep investigation. On the judiciary side, for example, we have to check for each owner’s criminal and civil information that could impact the legal process of acquisition.

In the case of a Thai Holding Company

A Thai company can also be the owner of the whole asset. In this case, the buyer can purchase some shares under his own name and become a director of the company. The control of the others is not to be ignored. In addition, business or corporate due diligence will request specific verification in the accounting and tax domains. To clearly understand the importance of shares and the right to vote attached, please read our article regarding Thai Company.


For all these reasons, the first step of your “real estate investment in Phuket, Thailand,” has to be property due diligence. And it is better to use competent and experienced law firms that offer full legal services in Phuket.