A Contract of Sale or Sales and Purchase Agreement is issued by a seller after the initial deposit to the buyer before closing the deal on a property purchase in Thailand. This sales contract is usually written in Thai and has a translation in English if the purchasing party is a foreigner. Before signing the sales contract, a buyer must read it thoroughly to make sure it reflects the basic rights of the consumer, and that it provides legal, complete, enforceable provisions on the land.
Sale and Purchase Agreement should contain the following information: when and how the seller will sell you the property, who will pay the taxes on the sale of property, what will happen to the initial deposit and any other payments if the seller does not transfer the property to you, describes the seller’s duties.
Before entering any legal contract such as Sales Contract, the consumer must make sure that it is properly translated and reviewed by competent Thai Property Lawyers. Some law firms in Thailand offers reviewing and translating the contract of sale, make any amendments if necessary to meet the buyer’s needs, make sure that the sales contract accurately describes the consumer’s right, and it does not include any hidden charges. This way, your interest as a consumer is protected. Thailand real estate deals involve a large amount of money so it is good to protect your investment.
Buying and Leasing Land
For a foreigner who leases a land in Thailand, make sure the right of superficies has been administered in your lease agreement. The right of superficies is used when you build upon land you do not own. It creates the registered right to use the land and to own the structures you build upon the land and is separate from the ownership rights over the land itself. For example, the land you have leased can be used for the construction of the building.
A right of superficies may be established either for a period of time up to 30-years; for life of the owner of the land; or for the life of the superficiary. A right of superficies registered for a specified term is a transferable and inheritable interest in land. This will ensure that in the event that you lose your lease (termination upon death) your superficies remains in full force and can be transferred to your heirs.