Before buying a condo or villa in a new development, it’s crucial to verify the developer’s credibility. This helps avoid legal issues, construction delays, or even scams. Here’s a step-by-step approach to doing your due diligence:
✅ 1. Check the Developer’s Track Record
| What to Look For | How to Verify |
|---|---|
| Completed Projects | Visit their previous developments in person or research online reviews |
| Delivery History | Were past projects delivered on time and as promised? |
| Company Age & History | Look up their registration date with Thailand’s Department of Business Development (DBD) |
| Developer Reputation | Check forums (like ThaiVisa, ASEAN Now), Facebook groups, or YouTube reviews |
✅ 2. Check if the Company is Registered
Use the official Thai government business database:
- 🔍 Department of Business Development (DBD)
- Search the developer’s company name
- Look for:
- Registered capital
- Years in operation
- Business type
- Directors and legal reps
✅ 3. Verify Building and Legal Permits
| Permit Type | Why It’s Important |
|---|---|
| Land Title Deed | Must be Chanote (Nor Sor 4 Jor) for proper ownership rights |
| EIA Approval (for large projects) | Required for buildings over 8 floors or 2,000 sqm |
| Construction Permit | Confirms legal right to build the project |
| Foreign Quota (for condos) | Check if you’re buying within the allowed 49% foreign ownership |
Ask to see official copies of these documents — not just verbal assurances.
✅ 4. Review the Sales & Purchase Agreement (SPA)
- Have it reviewed by a qualified property lawyer
- Look for:
- Clear delivery timeline and penalties for delays
- Payment terms
- Clauses covering refunds or cancellations
- Title transfer guarantees
✅ 5. Ask Questions Like a Pro
Here are smart questions to ask the sales team:
| Question | Why It Matters |
|---|---|
| “How many projects have you completed?” | Proves experience |
| “Can I visit a previous development?” | Check construction quality |
| “What is the refund policy on the deposit?” | Avoid losing money |
| “Is the land already owned by the developer?” | Avoid legal traps on land ownership |
| “What is the expected handover date?” | Helps track delays |
| “Do you have bank financing or escrow support?” | Indicates stability and investor confidence |
⚠️ Red Flags to Avoid
🚩 No registered company or unclear ownership
🚩 Developer refuses to show legal documents
🚩 Poor reviews or unresolved complaints
🚩 Aggressive sales tactics or big discounts to rush contracts
🚩 Repeated project delays in the past
🧠 Bonus Tip: Use a Lawyer or Buyer’s Agent
A licensed Thai lawyer or local property expert can help verify:
- Developer legitimacy
- Contract terms
- Legal compliance
- Land and building status
