Thai Contract Review
When a buyer purchase a property in Thailand, the seller of the property will provide the former with a Contract of Sale or Sale and Purchase Agreement after the deposit has been paid. Now, this contract may either use the English language or Thai but whichever the case may be, the buyer should make sure that he understands its provisions before he would affix his signature on it signifying that he agrees with its contents. If the contract is written in Thai then it would be highly advisable to have this carefully translated and be reviewed upon intently (preferably with the guidance of a Thai property lawyer) before it is signed and executed.
Importance of Contract ReviewSome property buyers in Thailand are well aware of the need to conduct a title search to ascertain the exact and factual details of a property and its title. On the other, the same amount of diligence must be exerted when it comes to the sales contract as it also emphasizes the mode in selling the property to the buyer, when the sale will be materialize as well as the terms and conditions attached with the sale. The usual Thai practice in sales contract is to simply list down the basic rights attached to the buyer and the seller. What should be done more with this regard is to also list down all the exhaustive rights and obligations of both parties. This allows for all possibilities to be exhausted in the event that a violation of a provision of a contract has happened. These examples emphasize the need for the contract to be reviewed by a competent law firm or Thai property lawyer to identify and make suggestions which provision is not it line with the interests and rights of the buyer. Below are other reasons why a contract review is a must:
- To avoid problems to occur on the sale of the property, both the buyer and the seller must have full understanding on the contents of the contract.
- There can be instances in which the previously negotiated or agreed conditions are not included in the contract.
- Essential provisions i.e. who pays which applicable taxes may not be included in the contract.
- The contract may have no provision that explicitly declare the penalties that the developer must pay in case the completion of an off-plan property has been delayed.
- A contract that covers an off-plan property must include provisions that provides clear lay out schedule and construction standard aside from containing construction plans, schematics or blueprints.
Buying and Leasing a LandIf a buying or leasing a land with the intent to build a structure on it, the to-be buyer or lessee must first determine if the said structure (and use of the structure) is permitted in the said area.
Contract Review ServiceThe employed process in doing a contract review may vary from one firm to another but Siam Legal Pattaya provides intensive review on the contract to:
- determine and make sure that the buyer’s interests are protected.
- make sure that the responsibilities of both parties (the seller and the buyer) are clearly and fully stated. Siam Legal also wants to ensure that hidden charges are not included on any provisions of the contract.
- determine if the contract does contain provisions that emphasizes the fate of the deposit and other payments if in case the seller will not transfer the property to the buyer.
- open a negotiation with the seller to have the contract undergo an amendment (if warranted) so that the needs of the buyer are met and also to ensure that the interests and rights of the same are protected i.e. what could happen in the event of construction delays or late payment of penalties. After being finalized, the amended contract will be presented to the seller for final ratification and agreement.