Review of Contracts in Thailand

Sale & Purchase Agreements

When you purchase property in Thailand, in most cases, the seller will provide a “Contract of Sale” or “Sale and Purchase Agreement” after you make the initial deposit. The contract may be in English or Thai. It is important to review this contract carefully before you sign it, so you may need a translation. While the title deed for the property describes exactly what and where the property is and who currently has a right to the property, the sales contract describes exactly when and how the seller will sell you the property. To make sure the sale goes smoothly, it is important to have a good understanding of what the sales contract says. In some cases the contract the seller gives you will not be complete. For example, the original sales contract might not include a provision for who will pay the taxes on the sale of the property.

While many sellers will say that their sales contract is standard, we have seen many errors and omissions in sales contracts. There is no need to use a so called “standard” contract if it does not meet your needs. When executing any important contract, it is always a good idea to get a lawyer’s comments on the terms of the contract to make sure they are legal, complete, and enforceable if something goes wrong. This is especially true if you are in a foreign country. Siam Legal’s property services include reviewing the contract of sale to make sure that your interests are protected. We can review the contract to make sure that it fully and accurately describes the seller’s duties and does not include any hidden charges. The contract should make clear what will happen to the initial deposit and any other payments if the seller does not transfer the property to you.

Buying & Leasing land

If you are buying or leasing land, it is imperative to make sure that you are allowed to build a structure or house on the land if that is your plan. This is sometimes called the right to superficies. In Thailand, the usual contract of sale only lists basic rights and does not list all the exhaustive rights and obligations of the seller and the buyer. More exhaustive sales contracts, as are common in many other countries, allow for all possible contingencies such as default by the seller or buyer. For example, if the seller has to complete development before the transfer of property, the contract should clearly lay out a schedule and standard for the construction or other development. Often sales contracts which are signed before development is completed will include the construction plans, schematics or blueprints.

Thailand Property Lawyers

At Siam Legal, our lawyers will review the contract and will make any amendments in necessary to meet your needs. These amendments would include protecting your rights if there is a delay in construction, and include late penalty payments and payment schedules. Once made, the amendments will be provided to the Seller for final ratification and agreement.