Due Diligence Before Buying Property in Thailand: What to Check and Why
Due diligence isn't a box-ticking formality — it's the one point in a deal where walking away is still cheap if something's wrong with the property. Here's exactly what gets checked, and who should be doing the checking.
A five-item checklist worth closing out before signing the SPA:
| What gets checked | Why |
|---|---|
| Land title | The document actually matches what's claimed (Chanote or above) |
| Seller's authority | Right to dispose of the property — power of attorney or company resolution |
| Foreign quota (for a condo) | Confirmed by the condominium's juristic person, not an agent's word |
| Encumbrances and disputes | Mortgages, liens, third-party rights, unresolved litigation |
| Lawyer's independence | Not affiliated with the developer or the seller |
Why due diligence matters even with a contract
A sale and purchase agreement fixes the terms of a deal, but it doesn't create ownership where none existed to begin with. If the seller doesn't actually have the right to sell the property, if it's mortgaged without the buyer's knowledge, or if the land document isn't what it's being presented as, no clause in the contract fixes that after the fact. Due diligence happens before the main contract is signed for exactly this reason — it's the last point where walking away costs the least (typically just the reservation deposit, or nothing at all if the reservation agreement provides for it).
Checking the land title
The first and most basic check: does the land document actually match what the seller claims. A Chanote (Nor Sor 4 Jor) is the only document that unconditionally confirms full ownership with fixed boundaries; documents lower in the hierarchy (Nor Sor 3 Gor, Nor Sor 3, Sor Kor 1) carry a fundamentally different set of rights, or aren't proof of ownership at all. The check involves comparing the document number, area, and boundaries against what the seller shows — not just a visual look at a copy of the document.
Checking the seller's authority
It's worth confirming that the person signing the contract actually has the right to dispose of the property — whether they're listed as the owner on the title document, and if the sale is being handled under a power of attorney, how broad that representative's authority actually is and whether it specifically covers selling this property, rather than general asset management. If the seller is a legal entity (for example, a Thai company holding a villa), it's worth confirming the decision to sell was made by the company's authorized body, not by a single director acting without the proper authority.
Checking the foreign quota for a condominium
For a condominium, due diligence has to include confirming the remaining foreign quota with the condominium's juristic person — a sales agent's verbal assurance isn't enough. If the quota is already used up by other foreign buyers, a freehold deal with a foreigner can't be registered, no matter what the contract says or how much money has already been transferred.
Checking for encumbrances and disputes
It's worth requesting confirmation of any registered encumbrances on the property — mortgages, liens, or third-party rights such as a previously registered lease or servitude. It's also worth checking separately whether there are any unresolved disputes over ownership or boundaries — this isn't always obvious from the title document itself and requires a separate inquiry at the Land Department.
Who should run the check
Due diligence should be handled by a lawyer independent of the developer and the seller — not one representing the other side of the deal or being paid by them. This isn't a formality: an independent lawyer's interests and the seller's diverge exactly where title or quota problems tend to be hidden. Relying on a developer's own legal department to check the developer's own property is a direct conflict of interest, even where the developer itself is acting in good faith.
Once due diligence is complete and the SPA is signed, the transfer of funds begins. EXFM isn't involved in the legal check on the property, but it handles the next step — converting a client's money into baht and arranging the transfer so the amount and stated purpose match the verified terms of the deal.
Further reading: verifying land documents — on the official website of Thailand's Department of Lands — dol.go.th.
