Chiang Mai Real Estate Sale and Purchase Agreement — Essential Clauses, Danger Clauses, and Self-Protection Before Signing

Chiang Mai Real Estate Sale and Purchase Agreement — Essential Clauses, Danger Clauses, and Self-Protection Before Signing

The Sale and Purchase Agreement (SPA) is a binding document for both buyer and seller before actual title transfer. Understanding each clause is critical.

Essential Clauses in Every SPA

1. Clear property details: Title deed number, land area, precise location, and inventory of items included in the sale (furniture, appliances, etc.)
2. Sale price and payment schedule: Agreed total price, deposit amount, down payment amount, and each payment due date
3. Transfer date: Clear specific date or defined time frame
4. Cancellation terms and compensation: Buyer cancels — typically forfeits full deposit; Seller cancels — typically must return double the deposit
5. Mortgage condition (if buyer is borrowing): If the bank does not approve the loan, does the buyer get the deposit back? Must be explicitly specified.
6. Property condition at transfer: Property must be in the same condition as at contract date; if tenanted, must specify how this will be handled

Clauses Requiring Special Caution

"Seller reserves the right to cancel without compensation" — do not accept; always require 2x deposit compensation if seller cancels

"Buyer accepts property As Is" — for properties not yet thoroughly inspected, this may waive rights to claim compensation for defects discovered later

"Transfer date can be postponed by the seller at no cost" — must define a time limit and penalty for exceeding it

Deposit and Down Payment

Earnest Money (Deposit): Paid when signing the SPA — typically THB 50,000-200,000 or 1-5% of price
Down Payment: Paid before transfer date — combined with deposit to reach 20-30% of price

What to Do Before Signing the SPA

Have a lawyer or experienced agent read every clause before you sign; read it yourself, especially the cancellation and compensation clauses; always ask for clarification on any clause you're uncertain about

Pre-Signing Contract Amendments

An SPA is a document both parties can negotiate and amend before signing — don't feel obligated to accept every clause as initially presented by the seller.

MORE Value. MORE Trust. Always.
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