Sale and Purchase Agreement for Land and Building

What Is a Sale and Purchase Agreement for Land and Building

A Sale and Purchase Agreement for Land and Building is a preliminary contract whereby the seller and buyer agree in advance to transfer ownership of land together with buildings at a later date, subject to agreed conditions. Ownership is not transferred until registration is completed 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

• Description of land and buildings

• Purchase price and payment method

• Deposit or down payment

• Transfer date and conditions

• Taxes, fees, and expenses

• Breach and termination clauses

Differences from a Registered Sale Contract

• This agreement creates advance obligations

• Ownership transfers only upon registration

• Breach gives rise to damages or enforcement claims

Common Risks

• No clear transfer date

• Unclear tax and fee allocation

• Incorrect title details

• Undisclosed encumbrances

Safe Practices

• Verify title deed and encumbrances

• Specify transfer procedures

• Include penalties for breach

• Prepare complete documents before transfer

Key Takeaway

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

FAQ

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

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

Q3: What if one party breaches?
A: Damages or specific performance may be claimed.

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

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

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