Glossary · The buying process
Sale and purchase agreement
Also called: SPA, Sale contract
In short
The contract between buyer and developer. For condominium units Thai law prescribes a standard form, and terms less favourable to the buyer than the form cannot be enforced.
What it means
The sale and purchase agreement fixes the unit, the price, the payment schedule, the specification and the completion date. It is the document your rights rest on until the title deed is in your name.
The standard condominium contract
- A developer selling condominium units must use the form prescribed under the Condominium Act.
- If the developer is late, you may terminate and have your payments returned with interest, or keep the contract and claim a daily penalty.
- The developer answers for defects for five years in the structure and building systems, and two years in other parts.
- Advertising material counts as part of the contract.
Contracts for villas and houses are less standardised.
What to read closely
- The annexes: floor plan and area, materials and fittings, payment schedule.
- The completion date and the events that allow the developer to extend it.
- Who pays which cost at transfer.
- The rules for assigning the contract to someone else before completion.