First of All: A little reminder on the right to own property
Even though a foreigner has the right to purchase freehold condominium property in full ownership on a permanent basis and with no time limit (provided that less than 49% of the building is owned by foreign owners), this is not always the case, even for other properties. Thai law prohibits foreigners from buying land in full ownership but foreigners may still own the house located “above”. It’s for this reason that the concession was created. You own the property, but you are officially “tenant” of the land for a period of 30 years renewable twice, for a maximum of 90 years. In this instance, the concept of “tenant” does not mean that you are liable for monthly rent but means that you cannot own the land.
The Sales Contract
This document, which can be compared to the sales agreement in France, links the buyer and the seller and lists all the particularities of the transaction. There must be two copies: 1 for the seller, 1 for the buyer and a copy that we keep in our sales records. Although this contract is generally written in English, it is valid with the Thai authorities.
With regard to the payment of the deposit that must be made at the time of signing the contract of sale, we specify that this payment must be made by means of a check (Cashier Check), and issued by a Thai bank.
The Content of the Contract
- Buyer and seller will see their name, nationality, identification document number, and residential address stipulated on the contract
- The detailed characteristics of the property: property number, address, area, current owner, and presence of parking space(s).
- The price agreed on between the buyer and the seller: The price drafted as well as the payment plan.
- The agreement between the parties regarding the payment of various taxes, fees, and other expenses.
- The signature of the stakeholders but also have the signatures of the witnesses present (2 in general) when signing the contract.
- The identification document of the buyer and the seller but also any other useful document when concluding the contract such as the title deed.
Obligations of the Buyer
The most important is, of course, the obligation to pay the agreed amount within the time limits specified by the terms of the contract. In the event that the buyer is guilty of a default, without the possibility of recovering the amount due, the seller could keep the amount of the deposit paid and terminate the contract.
However, there are also clauses protecting the buyer from possible failure of the seller. The seller must provide compensation if the seller does not fulfill his obligations regarding the transfer of property, for example, or cancels the sale without a valid reason provided for in the contract. He has seven days after notification by the buyer before having to pay the amount of the deposit paid, multiplied by two.
You can find a more detailed version of this article on the website of our real estate agency by clicking here.