Purchase Agreement with the Developer for Buying a Property
When acquiring a condominium directly from a developer in Thailand, the purchase agreement assumes a pivotal role as a vital legal document that meticulously delineates the specifics of the transaction's terms and conditions. Here are the key aspects typically included in such an agreement:
1. Property Details: The contract will describe the condominium unit you are purchasing. This includes the unit number, floor level, and any specific features or amenities associated with the unit.
2. Purchase Price: The contract will specify the total purchase price of the condominium, including any applicable taxes and fees. It may also outline the currency in which the payment should be made.
3. Payment Schedule: A clear payment schedule will be included, detailing how and when payments will be made. Prices are usually made in installments, with an initial deposit required to secure the unit, followed by additional fees at various construction milestones.
4. Reservation Fee: A reservation fee is often required to secure the unit before the formal contract is drafted. This fee is typically non-refundable and may be deducted from the total purchase price.
5. Construction Timeline: The contract should include an estimated timeline for the construction and completion of the condominium project. It will outline critical milestones, such as when the unit will be ready for occupancy.
6. Defects Liability Period: Developers typically provide a defects liability period during which they are responsible for addressing any construction defects. The contract needs to clearly define the length of this timeframe and the procedure for reporting and addressing any issues or defects.
7. Financing Arrangements: If you are obtaining financing through a bank or financial institution, the contract may outline the terms and conditions of the funding, including any requirements for mortgage approval.
8. Developer's Obligations: The agreement should unambiguously detail the developer's responsibilities, encompassing aspects such as construction quality, the provision of amenities and communal spaces, and strict adherence to pertinent regulations and building standards.
9. Buyer's Obligations: The contract will also delineate your obligations as the buyer, which may include timely payments and adherence to condominium rules and regulations.
10. Transfer of Ownership: The contract will outline the procedure and schedule for transferring ownership from the developer to the buyer.This usually occurs at the Land Office after completing the unit and making all payments.
11. Cancellation and Refund Policy: If you find the need to cancel the purchase, the contract should clearly stipulate the circumstances under which cancellation is allowed and detail any relevant fees or penalties. It should also specify the refund policy for any payments made.
12. Dispute Resolution: The agreement might also incorporate clauses related to conflict resolution mechanisms, including mediation or arbitration, to address potential disputes between the purchaser and the developer.
13. Legal Compliance: The contract should guarantee adherence to Thai real estate laws and regulations. It is recommended to engage a qualified legal expert to review the agreement, ensuring the safeguarding of your interests.
Upon mutual agreement between the buyer and the developer on the terms, the contract is usually executed, and the buyer proceeds with the payments as per the prearranged schedule. Before signing the contract, it's imperative to obtain legal counsel and carry out due diligence to ascertain that the terms are equitable and in accordance with Thai real estate legislation.