Due Diligence Before Purchase

[peekint]

Hello,

I'm considering purchase of a high-end condo in a fine building in Chiang Mai. I've done many real-estate transactions both here and overseas, but never a condo. I'm wondering if someone can help me with some basic questions.

1) does a condo have a deed ("chanote") like a detached property? What is the form of the ownership paper?

2) if there is no chanote, how can I independently confirm a lack of liens or mortgages against the property?

3) how do I ensure all sinking fund/annual management fees have been paid up by the previous owner before I buy?

4) how can I independently confirm that the unit can be legally sold to a westerner before I buy?

5) how can I independently confirm that the management company owns the land the building is built on (as opposed to long-term lease)?

If there are any other key questions I'm missing, please let me know. I've already done all the research on the management company, occupancy, building condition, etc. and find it desirable. I haven't looked at the management company financial statement yet, but I will...

Thank you in advance for any help!

[pkrv]

Hello,

I'm considering purchase of a high-end condo in a fine building in Chiang Mai. I've done many real-estate transactions both here and overseas, but never a condo. I'm wondering if someone can help me with some basic questions.

1) does a condo have a deed ("chanote") like a detached property? What is the form of the ownership paper?

2) if there is no chanote, how can I independently confirm a lack of liens or mortgages against the property?

3) how do I ensure all sinking fund/annual management fees have been paid up by the previous owner before I buy?

4) how can I independently confirm that the unit can be legally sold to a westerner before I buy?

5) how can I independently confirm that the management company owns the land the building is built on (as opposed to long-term lease)?

If there are any other key questions I'm missing, please let me know. I've already done all the research on the management company, occupancy, building condition, etc. and find it desirable. I haven't looked at the management company financial statement yet, but I will...

Thank you in advance for any help!

Sorry I can only partly help - The papers and there are three of them consist of a blue book which indicates freehold ownership (there is a yellow book for Farang house ownership correct me if I am wrong here guys) plus two other deed documents on different sized Thai legal paper - these specify the boundaries of your property including car parking space.

I bought off the plan from a reputable developer and used the British Embassy to cross check - essentially Bangkok Bank required proof of our address for us to open an account - if anything had been wrong the letter is now on file at Bangkok Bank's head office!

Aboveboard at all times comes to mind. Do it by the book and you should be OK.

[LennyW]

Please search previous threads on this forum, all your answers are there.

[peekint]

Please search previous threads on this forum, all your answers are there.

I'm afraid short of reading all the posts, the search function in this software is rather useless and "unselective" here. I know, I tried for an hour to whittle the posts down.

However, thanks for your bold and forthright suggestion.

[harrry]

[

all your answers are there.

Now if only we had the correct questions.

[pkrv]

You need to talk to the juristic people and their auditor. Juristic must appoint an auditor by law. That should be OK.

Hello,

I'm considering purchase of a high-end condo in a fine building in Chiang Mai. I've done many real-estate transactions both here and overseas, but never a condo. I'm wondering if someone can help me with some basic questions.

1) does a condo have a deed ("chanote") like a detached property? What is the form of the ownership paper?

2) if there is no chanote, how can I independently confirm a lack of liens or mortgages against the property?

3) how do I ensure all sinking fund/annual management fees have been paid up by the previous owner before I buy?

4) how can I independently confirm that the unit can be legally sold to a westerner before I buy?

5) how can I independently confirm that the management company owns the land the building is built on (as opposed to long-term lease)?

If there are any other key questions I'm missing, please let me know. I've already done all the research on the management company, occupancy, building condition, etc. and find it desirable. I haven't looked at the management company financial statement yet, but I will...

Thank you in advance for any help!

Sorry I can only partly help - The papers and there are three of them consist of a blue book which indicates freehold ownership (there is a yellow book for Farang house ownership correct me if I am wrong here guys) plus two other deed documents on different sized Thai legal paper - these specify the boundaries of your property including car parking space.

I bought off the plan from a reputable developer and used the British Embassy to cross check - essentially Bangkok Bank required proof of our address for us to open an account - if anything had been wrong the letter is now on file at Bangkok Bank's head office!

Aboveboard at all times comes to mind. Do it by the book and you should be OK.

[itsgottabedone]

Hi Peekint,

I can't help with your specific questions, infact i would love to know the answers myself, as I'm also considering investing in a CM condo. I have however spend a bit of time researching individual developments (new build, high end) and would welcome comparing notes? PM if you're interested and let me know which development you are considering and I could offer an opinion.

Thanks :-)

[taxexile]

1) does a condo have a deed ("chanote") like a detached property? What is the form of the ownership paper?

2) if there is no chanote, how can I independently confirm a lack of liens or mortgages against the property?

3) how do I ensure all sinking fund/annual management fees have been paid up by the previous owner before I buy?

4) how can I independently confirm that the unit can be legally sold to a westerner before I buy?

5) how can I independently confirm that the management company owns the land the building is built on (as opposed to long-term lease)?

1. yes , you will get a chanote for the unit you buy.

2,3. the juristic persons office will tell you exactly what , if anything , is owed on the unit , including outstanding management fees , and what deposits will need to be paid on things like electricity meters. at the time of transfer , if there is a mortgage to be paid off , a bank representative will show up at the land office to oversee the transfer and make sure that the mortgage is paid off by the previous owner when the transfer is authorised.

4. again , the juristic persons office will be able to tell you.

5. the juristic persons office will have a copy of the relevant title for the land , and you can confirm it at the land office

the financial statements of the management company should be displayed in the office or lobby for all to see , and updated every month with a full balance sheet detailing income and expenses , all certified as correct by a licensed accountant.

you could also ask the juristic persons office to put you in contact with the chairman of the owners committee if you have any further questions.