Exchange rates1 USD = 31.60 THB 1 EUR = 38.81 THB 1 RUR = 0.56 THB
Tel.: + 66 8 000 20 600Skype# LandofSmile-Property
The contract of purchase - sale from the builder when buying a new building. Rights and obligations.
Let's discuss and consider some points that will help you avoid mistakes in the contract for the purchase of buildings in Thailand. Only a small portion of buyers scrutinize the contract (contract of sale), before sign it with the developer by enclosing it in the unfavorable conditions in the end. In this article, let's look at the main points and it will help you in future transactions, as well as show the error of those who have already signed a contract to buy an apartment, but for some reason was not satisfied with the conditions.
Referring to the legislation. Law "On condominiums" in 1979, as amended in 2008, as well as a standard form of contract (contract) of sale condominium number of OS 22, approved by the Ministry of Internal Affairs of Thailand in 2008. It is these standards should guide all developers in the preparation of their contracts. The most important thing you need to know about them, according to Article 6/2 of the law "Condominium" - all contracts between buyers and builders should be drawn up in accordance with the standard form, which was approved by the Ministry. Any clauses which may go beyond the standard contract may impose less favorable conditions for the customer, when compared with the standard form and have no legal force. After all, under Article 63 establishes the responsibility of the construction company for the violation of Article 6.2 and includes a fine of up to 100 thousand. Baht, if the buyer protect their rights through the courts.
In principle, the potential buyer, before meeting with a representative of the builder can take to verify the standard form and cross out all unnecessary items from the developer agreement before signing the document. Also, you need to add the desired items, if they for some reason do not appear in the contract with the developer. Many developers agree to make adjustments to the contract of sale of an apartment in a condominium, if a compromise is reached, if not, then the buyer has two options. The first to sign an agreement prepared by the developer, the second option - to choose another project developer, where you could arrange all the items of the contract of sale.
Terms of the standard form of the agreement of the Ministry of Internal Affairs of Thailand. Basic conditions.
In the vastness of the Internet may find this version of the document, but completely in Thai.
Seller Condo (developer) must ensure that the land on which the project will be located condominium, located in the property. It should be indicated number Chanot (document of ownership), land area, location. The important point is that the seller must specify whether the area under the pledge if so, should be given the borrowed amount and information about the company that provided the loan. Also indicate the date of authorization for construction work, there is construction. The developer is required to obtain a license for a residential complex (condominium) after the completion of all phases of construction.
As a rule, a reliable real estate agent always checks all the documentation before signing the contract with the developer on cooperation in the sale of apartments in the condominium.
Terms and conditions of sale.
The sales contract should be specified number of units, number of apartments in the building (if there are several), floor area of the apartment, description, and the right to use the common property, equipment and infrastructure, as well as painted in the advertising brochures and booklets.
The cost of the apartment.
The contract of sale of the condominium for sale in Thailand should be specified cost per square meter, the total value of units (apartments). Should reflect conditions, if there has been an increase or decrease in area apartments on completion of construction, the cost of these changes on the basis of cost per square meter.
Calculations with the developer and the transfer of ownership to the buyer.
The procedure for settlement with the developer is that the first payment shall be entered on the day of booking an apartment or on the day of signing the agreement, the first payment is included in the total price of the apartment. Alleged payment schedule installments during the construction period, the buyer shall be issued contracts and all applications. Further calculations can be made based on the location of the seller, after each payment the company - the developer issues a receipt for the payments.
This article indicates the month and year of delivery of the project and a willingness to transfer the ownership to the buyer. The obligation of the seller (developer) - notify the buyer of the date of registration at least 30 days. The buyer can make it before, what must notify the developer within 7 days.
As a rule, having a reliable agent, the buyer need not go into details, competent agent will always make favorable conditions for installment, check all the items of the contract and give the buyer a complete version and all the information.
During the construction of the condominium, the buyer may sell the apartment (transfer its rights and obligations under the contract to a third party). You must notify the seller in writing of its intention, in this case, the seller shall have no rights to claim additional charges in connection with the sale (transfer of ownership).
Construction of condominium (apartment complex).
At this point the contract, the seller guarantees that the construction will be carried out with all the relevant government bodies to specifications, using building materials with quality, not lower state. standards.
In the case of construction delays, for whatever reason, but not the fault of the seller, the seller has the right to extend the period of construction, but not more than 1 year. The developer is obliged to inform the buyer about the causes of delay not later than days after the disappearance of this reason, otherwise he loses the right to an extension.
Also, the seller is responsible for the installation of electric and water meters in the apartment and on the objects of common use.
The costs of transfer of ownership in a condominium apartment.
The seller (developer) pays income tax, stamp tax, business tax. And the cost of transmission (transfer) is payable together with the developer and the buyer of the apartment. Such conditions are provided and the Tax Code of Thailand.
Penalties, interest for breach of contract, onulirovanie contract.
Penalty for breach of terms of payment by the buyer can not be more than 15% per annum on the amount of debt (unpaid value of the apartment), and is generally not more than 10% of the purchase price.
The seller (the company - the developer) has the right to terminate the contract unilaterally only in the following cases:
1. If both sides have agreed to pay for a contact in one payment, but payment was delayed.
2. If payment is divided into 24 payments, and more, in the case of a delay of 3 consecutive payments.
3. If payment is broken down into less than 24 payment, in case of delayed payment in the amount of 12.5% of the project cost.
In all cases, the seller is obliged to send a written demand for repayment to the buyer, and may terminate the contract unilaterally if this requirement is not met during the 30t days.
In those cases, if the developer does not transfer the ownership to the buyer within a specified time frame in contact, the buyer may:
1. terminate the contract and demand the return of all the builder paid funds and interest at the same rate.
2. The buyer has the right to require the developer to pay a fine of 0.01% of the value of the apartment daily. If the amount of the fine is 10% of the value of the property, and the transfer of ownership is not possible at this point, for whatever reason, the buyer may terminate the contract and demand the return of all amounts paid and interest.
Force majeure and the impossibility of transfer of ownership.
The developer must return to the buyer all previously paid money and pay interest at the maximum rate of the bank deposit Krug Thai Bank (Krung Thai Bank).
Liability for defects of construction.
The warranty period for the building and its parts is 5 years. Defects other components (infrastructure) is 2 years from the date of registration of the condominium (apartment complex). All defects must be repaired within 30t days after customer complaints.
Annexes to the contract of sale (contract with the developer).
The developer is obliged to make all copies of the contract documents and that the statutory documents of the company, Chanot (document of ownership) of the land plot, building permit, as well as a complete specification apartments, the total area and infrastructure, advertising brochures.
As practice shows, from developers have different versions of the standard interpretation of the contract. This can be a full backup of items and their addition to a complete disregard for the provisions of the standard. Both options are not ideal, in the first case are ignored especially construction of assets and other issues arising from the contract with foreigners, such as - the procedure of payments from outside of Thailand and the procedure for obtaining evidence of payment for international money transfers, foreign or Thai quota.
In another case, the developer away from the standard form of contract, trying to the maximum to protect their interests. In this case, it is not necessary to sign this agreement and hope for the restoration of their rights through the courts in the case of inconsistencies in the construction. Litigation in Thailand are long, and their costs are generally high, and the court's decision will be based on the interpretation of the contract, which was signed by both parties voluntarily, meaning agreement with all of its terms.