Due Diligence in Thailand
Due diligence in Thailand refers to the systematic investigation and verification of legal, financial, operational, and technical information before entering into a significant transaction. This process is especially critical for foreign investors, buyers of real estate, and parties involved in mergers, acquisitions, or joint ventures. Failure to conduct adequate due diligence can result in substantial financial loss, legal exposure, or acquisition of encumbered or unlawfully held assets. This article provides an in-depth legal overview of due diligence procedures in Thailand, focusing primarily on property transactions and corporate acquisition scenarios. It outlines what needs to be checked, where the information is sourced, and the implications of findings from a Thai legal and regulatory perspective. I. Legal Foundation and Importance Due diligence is not codified as a standalone requirement under Thai law. However, its practice is deeply rooted in contract law principles und...