Understanding and Signing the Sale & Purchase Agreement

Are you ready to take a deep dive into the world of sale and purchase agreements? Whether you're a seasoned negotiator or you're starting out, understanding and signing a sales agreement is a crucial step in sealing the deal. In this article, we'll break down the complex jargon and make it easy to understand for everyone. So, grab a pen, get comfortable, and let's unravel the mysteries of sales agreements together!

What is the Sale & Purchase Agreement?

The Sale & Purchase Agreement is a binding and legal contract between two parties, a buyer and seller. The contract is for real estate transactions and finalizes the terms & conditions of the sale, serving as the culmination of the negotiation process of the sale. The contract can come in both English and Thai languages. But whichever language your sale & purchase agreement comes in, it's important that you review the contract in detail before signing it.

What should a Sale & Purchase Agreement Include?

Besides to the seller and buyer's contacts, any sale & purchase agreement should include the following information about the property:

• The description of the property.
• The presence of any mortgages and/or easements.
• The exact address of the property.

The following are factors in which the sale & purchase agreement must mention:

• The Sales Price.
• Property Availability date.
• Deposit Amount.
• Terms of the Payment.
• Ownership Transfer Date.

Conducting a Contract Review

Now that we've covered what a sale & purchase agreement is and what you can expect to see in the contract, let's move onto the most important process that can make or break your agreement. That is the contract review process. It's of utmost importance that you review all details and terms or conditions in the contract in detail before you sign. That way, you are fully aware of your rights and obligations as the buyer, how much deposit you need to pay, and what is the full price. In some cases, assuming the property's construction might not be completed yet, you will also be able to know the property availability and ownership transfer date.

What to consider in a Contract Review

1. Make sure the information mentioned in the title deed is consistent with the sale & purchase agreement and vice versa. What can happen is that information discrepancies can lead to legal issues in a long run. Thus, it's essential to verify the information consistency between the title deed and the sale & purchase agreement. Be sure to also check if the land and building abides by Thailand's environmental and zoning regulations as well as whether or not is has been granted permits by government authorities.
2. Check for the original assessed price of the property and get verification from the Land Department. What might happen is some sellers ask for higher prices than what it's actually worth.
3. The seller must verify that the title deed was legally transferred to the seller and the property acquisition was not through illegal shortcuts. Both parties must also ensure the other party is a Thai citizen rather than a foreigner due to prohibitions from owning land for the latter.
4. Both parties must ensure their rights and obligations are correctly stated in the contract. You can try to negotiate if you wish.
5. It's essential for both parties to carefully review the payment schedule in a sale and purchase contract. Mistakes like incorrect dates or locations for payments can cause significant issues. Also, it's crucial to verify that the payment method and the buyer's payment timeline to the seller are accurately stated in the sales contract.

Once you have reviewed and verified all the information in the sale & purchase agreement, then you can finish off by signing the contract.

Bottom Line

In conclusion, grasping the ins and outs of a Sale & Purchase Agreement is your key to navigating the world of real estate transactions. Remember, every detail in this document carries weight, ensuring a smooth journey towards your dream property. So, next time you're handed that contract, don't be daunted—be empowered. You've got the knowledge to protect your interests and secure your slice of the real estate pie. Happy home hunting!

Navigate your homebuying journey effortlessly with us today. Our property consultant team will be happy to help you find your dream home.