What happened
An expatriate client planned to buy a villa in Phuket for 15 million baht. The purchase involved a substantial down payment followed by instalments tied to construction progress. Before committing, the client wanted to understand whether the developer had the financial position, credibility and ability to complete the project.
What we did
We reviewed the purchase contract and carried out due diligence covering:
- The developer's financial condition and corporate background, including past or ongoing court proceedings.
- Title-deed information obtained directly from the Land Department, including the property's status and any encumbrances.
- Company registration and operating-history information from the Department of Business Development.
- The location and legal particulars of the villa project under construction.
We brought these findings together in a report explaining the risks and information relevant to the client's decision.
The outcome in this case
After reviewing the report and advice, the client decided to proceed. We continued to advise throughout the transaction and attended the signing of transfer documents at the Land Department in Phuket. The work therefore ran from the initial checks through to the completed acquisition.
Planning a similar purchase?
Before the first conversation, gather the draft or signed purchase agreement, the payment schedule, identifying details of the property and any documents supplied by the seller or developer. Tell us whether you have already paid a deposit and when the next payment or signing is due.
The report in this case brought the contract and independent records together for the buyer's decision. It did not simply repeat the developer's description of the project. For your purchase, discuss which records can be checked, any information still missing and what the proposed review will cover.
Questions to raise before the next payment
- What rights does the agreement describe, and which property records support them?
- Which construction stages trigger payments, and what documents are available for those stages?
- Does the proposed legal work include the transfer, or only the initial review?
A completed transaction in this account does not make another project risk-free. Start with the documents and the particular rights you intend to acquire. Explore our property due-diligence work or contract drafting and review.