If you are considering buying real estate in Thailand you will need to understand one of key documents required for a property sales transaction. The Sale & Purchase Agreement (SPA) details the purchase. Buyers need to beware as sellers often add clauses that do not need to be included and generally are there to bind the buyer while protecting the seller. Our real estate experts know exactly what should be in a SPA and we design our SPAs to be fair. Regardless of who prepares the SPA a buyer needs to make sure that a qualified real estate consultant reviews the agreement.

What's In A SPA

It is very important to remember that no contract is set in stone. In order for it to be binding it will need the signatures of both parties. If the contract is incomplete or contains terms that you do not like, just say no! Then go back and negotiate with the seller.

Required Articles In A SPA To Review:

  1. A Sale & Purchase Agreement will identify the parties. If a seller offers you a standard agreement, it should identify the seller with their national ID card, passport or company documents.
  2. A SPA should clearly identify the property being sold. The title deed and house registration book, as well as the construction permit should all be attached to the SPA.
  3. Check your personal details as well. Make sure that your personal details are 100% correct, especially the spelling of your name.
  4. If the property is being sold furnished or partially furnished, a detailed list of the furnishings should also be attached. This is important if the property is still under construction, in such cases the list of furnishings should be clearly identified.
  5. Of course the SPA should detail the total purchase price, closing costs, and taxes, and the terms of payment.
  6. The agreement should also specify what will happen in case of late payments or transfer of title or default. Terms of payment should include a dispute resolution process in case of default by either party.

These are the essential articles for any Sales and Purchase Agreement. One thing you can count on, some SPAs are so detailed and contain so many pages you can become lost in the paperwork. That is why it is important to have the SPA carefully reviewed by professionals. Remember that your signature seals the deal so if you don't like the deal or your real estate consultants tell you to walk away from the deal, use your brain not your heart and let the pros negotiate the deal for you.

Contractual Language
An important issue may be the language of the agreement. If you and the seller speak different languages and are using translated contracts for negotiation purposes, it is important to specify which language will be the governing version of the contract in case of dispute or translation error. Thai law specifies that “whenever a document is executed in two versions, one in Thai and the other in any another language, and there are discrepancies between the two versions, and it cannot be ascertained which version was intended to govern, the document in Thai shall govern.” Thus, if you do not specify that the version you understand governs, you may be bound by a different version. It is best for both parties to sign only a single agreement that contains a provision identifying the governing language. If translated versions of the agreement are being used for negotiation purposes they should not be signed or legally executed.

SUMMARY - A Sale and Purchase Agreement binds you in the real estate purchase process so we encourage property buyers to give us a call or make an appointment for a consultation with one of our Real Estate experts. Please remember the 1st consultation is totally FREE so don't hesitate to Contact Us!

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