Sale and Purchase Agreement in Chiang Mai — Key Points to Watch Out For

Sale and Purchase Agreement in Chiang Mai — Key Points to Watch Out For

The Sale and Purchase Agreement (SPA) is the most important document in any Chiang Mai property transaction. It defines the rights and obligations of both buyer and seller in full detail. Signing without reading carefully can create serious problems later.

Key Clauses That Must Be in the SPA

1. Property Details
- Clear property description including title deed number, land size, and structures
- List of items included in the sale such as furniture and appliances

2. Price and Payment
- Clear purchase price
- Deposit amount and payment date
- Payment schedule for the remaining balance
- Bank account for deposit payment

3. Transfer Date
- Clear ownership transfer date
- Transfer location (Chiang Mai Land Department)
- Conditions for postponing the transfer date

4. Default Conditions
- Penalty if buyer defaults (typically loses the deposit)
- Penalty if seller defaults (typically returns double the deposit)
- Conditions for lawful termination of the agreement

5. Transfer Day Cost Responsibilities
- Clearly specify who pays the transfer fee, specific business tax, and stamp duty

Important Clauses Often Overlooked

Mortgage condition
If buyer is using a bank loan, specify:
- If the bank rejects the loan, does the buyer get the deposit back?
- Timeframe given to apply for and receive loan approval

Property condition on transfer day
- State that the property must be in the same condition as on contract day
- If damage occurs before transfer, who is responsible?

Common Mistakes in Sale and Purchase Agreements

For buyers
- Not verifying the seller's name matches the title deed before signing
- Paying a deposit without a formal written agreement
- Not including a mortgage condition clause
- Not having a lawyer or agent review the contract

For sellers
- Accepting a deposit without specifying a clear transfer date
- Not listing what is and is not included in the sale
- Not specifying penalties for buyer default

Contract Service from More Property CM

We prepare comprehensive bilingual Thai and English Sale and Purchase Agreements covering all scenarios, backed by 20+ years of local expertise.

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Contact us today for a free consultation:
Line: @morecm | www.morepropertycm.co.th
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