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Condominium Sale and Purchase Agreement

Posted by BKK.CONDOS on 01/01/2020
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If you are buying a condo in Bangkok, especially a pre-owned condo, the process can be quite simple. It’s not unusual for the parties to simply agree a price and then both the purchaser and vendor go to the Land Office on the appointed date to transfer the title of the condo.
 
At the Land Office, you present your passport, plus any other necessary documents, then arrange with the Land Office officer for the name of the title deed to be transferred to your name. You pay transfer taxes according to the agreed split and give the vendor the cheque(s) for the agreed purchase price. Or two cheques if there is a bank involved and a mortgage has to be redeemed. The vendor gives you the title deed and away you go. Now you are the proud owner of your very own condo in Bangkok!
 
It can be that simple. Or problematical!
 
To try and avoid any disputes or misunderstandings which may arise it is always better to have a Sales and Purchase Agreement (“S&PA”) setting out the agree terms and conditions of the sale prepared and signed by both parties beforehand. And, believe us, no matter how simple a transaction appears to be, disputes and misunderstandings always seem to arise.
 
Even simple disputes can ruin a transaction, so it’s best to have all of the main terms and condition in writing.

Sale and purchase agreement for a condominium in Bangkok

Common problems or issues which arise may include:
 
1) is all of the furniture included or excluded in the sale price? If only part of the furniture, what is included or excluded? Paintings, decorative items? It goes without saying that “personal items” are excluded, but what exactly are personal items? Try and make it as clear as possible;
 
2) fixtures and fittings: just because some things are built in, it does not mean that some vendors will not try to remove them. Book cases or wall cabinets, for example. Again, be sure what you are buying when you buy your condo;
 
3) then there is often the most problematic of them all: Transfer and associated taxes such as stamp duty and withholding/local taxes. Transfer taxes are almost always shared between the parties on a 50/50 basis. The other taxes are, technically, vendor’s taxes but the market practice is to share these on a 50/50 basis also. You may need to agree to this but make it clear which taxes you are prepared to share. And watch out for Special Business tax of 3.3% which may apply if the vendor has owned the property for less than 5 years (although there are exemptions to this). Some vendors will roll this into the total tax burden to be shared.

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