The Sale and purchase agreements (SPA) are contracts that bounds both the “Buyer” and the “Seller” into a contract which will require them to mutually agree to a condition with regards to a property being dealt with. The purpose of this agreements is to outline the agreed conditions of the property, it is the main document that is legally required if you are interested on buying a condominium in Thailand. The importance of the sales and purchase agreement is that it sets out the agreed elements of the deal, it includes a number of important protections to all the parties involved and provides the legal framework to complete the sale of a property. The SPA is therefore of critical importance to both sellers and buyers.

 

Table of Contents

  1. What is the purpose of Sales and Purchase Agreement?
  2. What is included on the Sales and Purchase Agreement?
  3. Sabai Property Law Firm will assist you!

 

1. What is the purpose of Sale and Purchase Agreement?

The Sale and Purchase Agreement make sure that the parties (“the buyer and the seller”) have mutual understanding on the transaction, may it be about the terms and conditions, the set forth rules and regulations and even the payment methods and transactions, it will be declared and specified under this agreement. It is the result of sophisticated key commercial pricing negotiations and is the key document in many sales processes. A sale and purchase agreement (SPA) are a legal contract that obligates a buyer to buy and a seller to sell a product or service. A SPA is a structure that outlines how a transaction shall progress; detailing exactly what is and is not included in the transaction.

The Sale and Purchase Agreement are possibly the most important document for buying a Condominium in Thailand. It is also a must that you have the agreement reviewed by your legal advisor or property lawyer to make sure that the benefits and mentioned details are beneficial for both parties and does not undermine your best interest. There are some instances that the “buyer” (especially foreign entities) miss some details that affects the transaction greatly. For this reason, it should be approached carefully and rigorously, with legal experts guiding both the seller and the buyer.

2. What is included on the Sale and Purchase Agreement?

Our lawyers will review the Sales and Purchase agreement for you. It is important to have it thoroughly checked to make sure that there will be no lapses that might affect any party in the long run. The sale and purchase agreement will include all of the general obligations and conditions that you will need to comply. These may include the following:

  • Terms and Conditions of the Agreement
  • Terms of sale and/or payment (such as the overseas payment transfer)
  • It must provide significant information about buyer and seller
  • Serve as a record for deposits made during negotiations
  • Create a record of transactions that have already occurred
  • Access Rights to the Property
  • Insurance for the Property
  • Default by the Buyer
  • Default by the Seller

To provide a much wider scope for the agreement, you can also include an addendum to the Sales and Purchase Agreement. Addendums are extensions or additions to the original purchase and sale agreement, which may be added by either the buyer, seller or both. Addendums may be necessary if more time is needed to complete a part of the agreement, if further or more detailed inspections are required, repairs are needed, or anything else arises that may affect the original terms of the agreement. Addendums become a part of the contract when all parties agree to the new terms.

3. Sabai Property Law Firm will assist you!

The Sale and Purchase Agreement can be a daunting document for foreigners who are looking forward to owning a condominium in Thailand.  As a legal document it is important that you make sure that you are fully informed about your legal obligations. It is also the opportunity to ensure that you include all the conditions needed to be able to check out the property to give yourself assurance regarding the property.

Our lawyers will assist you in drafting or reviewing any sales and purchase agreement that you will engage on, our lawyers will make sure to:

  • Work through the conditions until the agreement will be unconditional and agreed by both the Buyer and the Seller.
  • Thoroughly checking the agreement and clauses to make sure that your best interest will be considered.
  • Explain and make you understand the clauses easily to make sure that you understand the agreement fully.

For assistance with Buying a Condominium in Thailand or any related real estate and property services in Thailand you can count on our Law Firm. Our lawyers have extensive experience on this field and will provide the best solution and best advise for you, because we value you and here at Sabai Property Law firm, your best interest is our top priority, and your satisfaction is our happiness.