Condominium buyers are often warned that they must conduct a thorough due diligence before investing in any property, and that they should not rely solely on the verification process done by banks while they are processing a home loan request. This is sound advice, especially in the current times when many buyers have found themselves in troubled waters after making property purchase decisions without doing their homework. What does due diligence mean with regards to property purchase? Basically, it is a thorough investigative process the objective of which is to determine whether or not a certain real estate option is safe to invest in. The process requires different elements to be focused on, depending on whether one is purchasing a ready-to-occupy property or one which is under construction. A due diligence for redeveloped properties also has specific areas to be focused on.
Due Diligence For Ready-To-Occupy Properties
Discovering the full spectrum of a developer's credibility is paramount when considering a property investment. At Juslaws & Consult, we specialize in uncovering vital details, including the developer's track record of project delivery, often overlooked aspects that directly impact risk levels, and essential local insights that only seasoned residents can provide. Our comprehensive approach includes requesting approved project drawings, obtaining copies of crucial documents like the Intimation of Disapproval (IOD) and completion certificate, and verifying a clear land title to ensure a litigation-free property with no associated debts. We meticulously examine the existence of a proper society and facilitate seamless transfer and re-registration processes for second-hand properties. With our assistance, buyers can navigate the registration process smoothly, armed with a detailed checklist covering all essential documents and considerations, such as approved property usage, potential litigations or governmental actions, condominium documents, service contracts, and construction-related warranties. Partner with us for a thorough due diligence process that safeguards your real estate investment and provides peace of mind.
Due Diligence For Under-Construction Properties
When navigating a property purchase, particularly from a developer, understanding the project's construction progress is crucial. Without the guidance of a property advisor, the risk of misinformation regarding the project's development grows substantially. It's crucial for buyers to verify the builder's ownership of the land and ensure the existence of an Intimation of Disapproval (IOD), a prerequisite for legal project construction. Additionally, the project must possess a commencement certificate, confirming its legal initiation. When exploring pre-launch options, scrutinizing the builder's credibility becomes even more critical, focusing on their transparent track record and adherence to legal protocols. Trust in the builder's integrity is essential for a smooth and secure investment journey.
Due Diligence For Redeveloped Properties
For a redeveloped property, the paperwork is the same as for a new one as the project is completed, no matter what its history is. In the case of redeveloped properties, there are two possible options: in the first scenario, discussions regarding redevelopment are ongoing between the society and developer, but no agreement has yet been signed. In such a case, buying into the project is as good as buying into a normal resale property.
In the second scenario, an agreement is already in place between the society and the developer. If one of the society members wishes to sell his property and has found a buyer, there are three parties involved in the transaction – the seller, the buyer and the developer. The developer in question needs to be kept in the loop so that the rights of the existing society member who is selling his property are properly transferred to the buyer, with the knowledge of the society.
In case the agreement is signed between society and developer, there are two situations possible. In the first, the building has yet to be demolished, in which case the process is simple – the buyer moves into the property, to vacate along with other society members at the time of actual redevelopment.
However, if the building has already been demolished, the old flat no longer exists and the new one is yet to be constructed. In this case, the permission of both the society and developer are required since, though money has changed hands, the transaction is incomplete until the property has been reconstructed and registered in the new owner’s name. The agreement needs to mention this appropriately.
In the case of a redeveloped property, apart from the usual due diligence, the development agreement between society and developer must be checked on. The new buyer must ensure that the seller is surrendering all rights and claims after the property is reconstructed.
Nuestro equipo de expertos legales se especializa en llevar a cabo la diligencia debida de condominios para garantizar una transacción de propiedad sin problemas y segura para usted. Desde la identificación meticulosa del estatus legal del condominio hasta la navegación por las complejidades jurisdiccionales, nuestros experimentados abogados manejan cada aspecto del proceso de due diligence con precisión y pericia. En estrecha colaboración con nuestros homólogos internacionales, nuestro equipo jurídico tailandés garantiza un apoyo integral y ofrece resultados óptimos adaptados a sus necesidades de diligencia debida de condominios. Para más información y asistencia experta, consulte a nuestros abogados de Juslaws & Consult.