A property purchase agreement facilitates the purchase and selling of property. There are several specific elements of a standard agreements that remain constant for every transaction, However, some components must me written to include a specific language associated with the property.
Generally, the property purchase agreements are of two types, one drafted for the purchase of movable and and the other for the immovable property.
Immovable property are defined as the land and objects permanently fixed to the land or forming a body. This type of agreement includes true rights associated with the land or objects fixed to forming a part of the land. Note that the immovable property purchase agreements must be in a written format in all cases, or else the sale will be not be considered genuine and would be dismissed by court in case of legal dispute.
Movable property, on the other hand, includes all objects other than immovable property and rights associated with it. Drafting an agreement for sales below 20,000 THB in written is optional whereas, it is mandatory for sales above the value of 20,000 THB.
Apart from all the common elements of the purchase agreement (property information, seller and price), language is one specific elemnent that should not be ignored in Thailand. In case you have a multilingual contract, it is mandatory to specify which version is the governing version of the contract to prevent any legal dispute or translation error. If the court is unable to identify the original version of the agreement, it will consider Thai translation of the contract to be the governing version. Alternatively, property purchase agreements can also be bilingual.
Dealings with a property purchase agreement can be a quite difficult legal matter and requires an involvement of experienced attorney to help you avoid threats that might lead to disputes and litigation in future.
Cloud 7 Legal Services provides complete drafting and/or reviewing of your property purchase agreement. We have a team of experienced lawyers who have have relevant experience with land and property conveyance in Thailand and can guide you throughout the process efficiently.