Purchase contracts for Thai property.
Property purchase agreement is a legal instrument used to purchase or sell a property. Although there are many components of standard contracts that remain consistent from one transaction to the next, some parts must be written to include specific language relative to the property.
Two types of property purchase agreement.
In general, purchase agreements are drafted for two main purposes, namely for the purchase of movable and immovable property.
Immovable property denotes land and objects fixed permanently to the land or forming a body therewith. It includes real rights connected with land or objects fixed to or forming a body with land. Unlike movable property purchase agreement, immovable property purchase agreement must be made in writing in all instances, otherwise the sale will be considered void and it would be dismissed by court in case of a legal dispute.
On the other hand, movable property denotes objects other than immovable property and it includes rights connected therewith. For sales under the value of 20,000 THB, drafting the agreement in writing is optional (albeit recommended), however, sales exceeding this amount are legally required to be made in writing.
Apart from the obvious components of every property purchase agreement such as information about the property, seller and price, there is one specific aspect that should not be overlooked in Thailand – language. In case of multilingual agreements, it is important to specify which version is the governing version of the contract in case of dispute or translation error. If the court is unable to determine which is the original version of the agreement, it will consider Thai translation to be the governing version. Alternatively, purchase agreements are also allowed to be bilingual.
What Acclime can do for you?
Executing a property purchase agreement can be a complex legal matter and requires an experienced attorney to help avoid the pitfalls that may result in future disputes and litigation.
Acclime can provide comprehensive drafting and/or review of your purchase agreement. Our lawyers have extensive experience with land and property conveyance in Thailand and can guide you through the process quickly and easily.