Whether you are planning to buy or sell a property in Thailand, it is important to perform a Contract Review before the finalization of the sale. A contract review can help you better understand your contract and identify hidden clauses and issues that could lead to litigation. The importance of a contract review will vary depending on the parties involved.
Buying or Selling Property
Before you buy or sell property in Thailand, it is wise to consult with a lawyer to review the contract and clarify any legal ambiguities. In addition, you should check that the property listing matches the title and contains all the details that you need to know about the property. Also, make sure that the contract is valid and that there are no hidden charges.
Although the real estate market in Thailand is largely unregulated, it is still advisable to review contracts thoroughly before signing them. Most sellers will provide a Sale and Purchase Agreement (SPA), which may be in English or Thai. Make sure you understand its contents to ensure your legal interests are protected and that you choose the right ownership structure. A lawyer will be able to translate and review the contract and advise you on the best ownership structure.
Sale and Purchase Agreement Legal Requirements
In Thailand, you should carefully check if a sale and purchase agreement has all the legal requirements and the relevant terms and conditions. Generally, a sale and purchase agreement will state the buyer’s rights and obligations, as well as the buyer’s price. The contract must also comply with the Condominium Act and other relevant laws.
The Thai version of the sale and purchase agreement will require the signing of a building permit. The building permit is an important document to transfer ownership of the property. Another important document to acquire is a superficies (right to use land) granted by the landowner to another party. This right may be renewable for a period of up to 30 years or for the life of the landowner.
Costs of a Contract Review
If you are in Thailand and you are not sure if a contract is in the best interest of you or not, a contract review lawyer can help you understand the details and make sure that you are not being ripped off. A contract is a legally binding document that is not always clear, so getting legal help is highly recommended. A contract review attorney will also highlight any risk areas.
In Thailand, contract review is mandatory and will help you make sure you get a fair deal. A lawyer will always draft a contract in the best interests of the seller. Contract reviews can protect you from a contract that may contain ambiguous terms and lead to litigation.
With Due Diligence
Contract reviews are one of the most important steps in the buying process, whether for buyers or sellers. It is essential to have an expert review the contract to ensure it is fair and legal. A contract review will also help clarify the responsibilities of each party in the case of a dispute. Real estate contracts can be complicated and ambiguous, so a contract review can be invaluable.
Due diligence is also crucial when buying or selling property in Thailand. For example, it is important to check whether the property has the required building permits, and whether there are any litigation cases pending against the owner. Due diligence also includes checking whether the land has been mortgaged or encumbered with debt.