If you buy real estate in Thailand, the seller usually provides a Sale and Purchase Agreement or a Contract of Sale after a deposit has initially been put down. The agreement may be written in Thai or English. Reviewing this contract is imperative if you wish to make sure your real estate purchase is legitimate.
While a title deed is designed to describe the location and rights of ownership, a sale and purchase agreement defines the process of the sales transaction. It also underscores certain terms and conditions for sale.
Why the Contract Should Be Reviewed
In Thailand, the sales contract is set up to describe and list the basic obligations or rights involved in the real property sale. It does not get more detailed than that, as it might in other countries. For example, a more exhaustive sales agreement may permit certain contingencies, such as a buyer or seller defaults.
Therefore, you need to have the contract reviewed for the following reasons:
To ensure smooth delivery of the paperwork and completion of the sales process. You need to have the agreement reviewed, as well, to ensure you completely understand the terms.
To add any provisions that are not currently included in the agreement. For instance, you may need to include an amendment that states how taxes will be paid when the property is sold.
To make sure the contract clearly specifies the standards and schedule for the development of or building of a property or structure.
As you can see, reviewing the contract is necessary if you want to make sure your consumer rights are protected in the purchase or sale of real estate.
Leasing or Buying Land
If you wish to build a structure on land that you wish to purchase, you need to make sure that you are permitted to do so. Reviewing the contract will help you determine your right to superficies – a right that may be established for a certain period, or during the life of the landowner.
The Benefits of a Contract Review
When a contract is reviewed, it affords the buyer of land to realize the following:
That his or her interests remain protected.
That the contract is accurate and does not contain any hidden fees or charges.
That the initial deposit and other fees are managed properly, in case the property is not transferred by the seller.
After a contract review, lawyers will contact the seller if he or she needs to make any amendments to the agreement. Amendments may include protecting the buyer’s rights, for example, if there is a building delay.
After the amendments are included in the contract, the seller reviews the agreement one last time.
If you need the assistance of a property lawyer in Thailand, please contact us.