Condominium Sale and Purchase Agreement

What Is a Condominium Sale and Purchase Agreement

A Condominium Sale and Purchase Agreement is a preliminary contract whereby the seller and buyer agree in advance to transfer ownership of a condominium unit at a future date once agreed conditions are fulfilled. Ownership is not transferred until the transfer is registered with the competent authority under condominium law.

Legal Basis

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

• Condominium Act B.E. 2522 (1979), as amended

• Sale of a condominium unit must be in writing and registered to be legally effective

Essential Contract Terms

• Seller and buyer details

• Unit description (unit number, floor, area)

• Purchase price and payment method

• Deposit or down payment

• Transfer date

• Common fees, taxes, and expenses

• Breach and termination clauses

Difference from a Registered Condominium Sale

• Creates advance contractual obligations

• Does not transfer ownership

• Ownership transfers only upon registration

Common Risks

• Failure to check foreign ownership quota (49%)

• Unclear transfer date

• Unclear allocation of fees and taxes

• Inconsistent unit details

Safe Practices

• Verify condominium juristic person certification

• Confirm foreign ownership quota

• Clearly define transfer procedures

• Prepare documents and funds in advance

Key Takeaway

A condominium sale and purchase agreement creates 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, and registration is required.

Q3: What should foreign buyers check?
A: The 49% foreign ownership quota.

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

Q5: Who pays common fees?
A: As agreed in the contract.

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