Land Sale and Purchase Agreement

What Is a Land Sale and Purchase Agreement

A Land Sale and Purchase Agreement is a preliminary contract whereby the seller and the buyer agree in advance to transfer ownership of land at a future date, subject to agreed conditions. Ownership does not transfer until the land transfer is registered with the competent authority.

Legal Basis

• Thai Civil and Commercial Code, Book III, Sale of Property

• Sale of immovable property must be in writing and registered to be legally effective

Essential Contract Terms

• Seller and buyer details

• Land description (title deed number, area, location)

• Purchase price and payment method

• Deposit or down payment

• Transfer date

• Taxes, fees, and expenses

• Breach and termination clauses

Difference from a Registered Sale Contract

• Creates advance contractual obligations

• Does not transfer ownership

• Ownership transfers only upon registration

Common Risks

• No clear transfer date

• Failure to check encumbrances

• Unclear allocation of taxes and fees

• Incorrect land details

Safe Practices

• Verify the title deed and encumbrances

• Clearly specify transfer procedures

• Include penalties for breach

• Prepare documents in advance

Key Takeaway

A land sale and purchase agreement creates obligations, not ownership.
Ownership arises only upon official registration.

FAQ

Q1: Does this agreement transfer land ownership?
A: No, ownership transfers only upon registration.

Q2: Must the agreement be in writing?
A: Yes, to be enforceable.

Q3: What if one party breaches the agreement?
A: Damages or enforcement may be claimed.

Q4: Is the deposit refundable?
A: Subject to the contract terms.

Q5: Is title verification necessary?
A: Absolutely necessary.

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