What should you know about a home purchase and sale contract?

Created : 15 Dec 2023

What should you know about a home purchase and sale contract?

A purchase and sale agreement, whether it is for land, a house, or land with improvements, is a legal document created to establish a legal relationship between a buyer and a seller in a real estate transaction.

Components of a purchase and sale contract

The purchase and sale contract consists of 9 parts:

Section 1: Details of Contract Preparation

In a land purchase and sale agreement, the header of the contract must specify the date of signing to indicate the legally effective date.

Section 2: Details between Parties

Details between parties refer to information that identifies the buyer and the seller, guiding who the contract for the purchase and sale of the property is made between.

By law, the information shall consist of the name, age, and address of both the "Buyer" and the "Seller," as per the details on their respective national identification cards. In the contract, it is crucial to verify that all information is accurate. If there are discrepancies in the names of the contracting parties, it may render the contract null and void. Top of Form

Section 3: Property Details

In a purchase and sale agreement, it is imperative to include significant details about the real estate, such as the land title deed number, land size, type of structures, building identification numbers, and the administrative district where the property is located (sub-district, district, and province).

Section 4 Selling price and payment details

In the contract, the price of the real estate agreed upon for purchase must be clearly stated. Both numbers and letters.

If in the case that a deposit has been made must specify how many baht the buyer has paid before. How to pay? Should specify bank reference number, branch along with payment date. How to pay? How much is the installment? And how much is still left to pay on the day of transfer of ownership at the land office? Must be clearly specified

Section 5: Details of Property Title Transfer Registration

The agreement must stipulate the timeframe for the property title transfer registration and specify the agreed-upon date for the transfer of property rights within the timeframe set by the contracting parties, as deemed appropriate.

Section 6: Details of Transfer Expenses

The agreement must specify the party responsible for the expenses incurred during the property rights transfer, such as the transfer fees, income taxes, and any specific business taxes (if applicable).

Land transfer expenses	จำนวนเงิน
Transfer Fee	Not more than 2% of the appraised price
Duty	0.5% of the purchase price or appraised price
specific business tax	3.3% of the purchase price or appraised price
withholding tax	Think like a tax ladder. Deduction of expenses according to the year of ownership

Section 7: Breach of Contract and Contract Termination

In the agreement, both the buyer and the seller's responsibilities and consequences for breaches must be clearly defined. In the event of situations such as the buyer breaching the contract, changing their mind about the purchase, or failing to transfer property rights on the agreed-upon date, the seller has the right to terminate the purchase and sale agreement. In such cases, the seller is entitled to cancel the contract and retain any earnest deposit placed.

Section 8: Agreements and Other Conditions

Various agreements between the buyer and the seller may arise, and they can cover a range of situations. Examples include details on contract cancellations, refunding of earnest deposits, home warranties, agreements to construct entry-exit roads, obligations to register easements for access to public roads either before or after the property rights transfer, and more. These details will be specified in the concluding section of the contract. It is crucial to pay attention to this section to ensure fairness and equity for both parties.

Section 9: Signature of Contracting Parties and Witnesses

The final section of the contract is the acknowledgment and acceptance of the terms and conditions of the purchase and sale agreement. It certifies that the contract is executed in two identical copies, each containing the complete and consistent content for both the buyer and the seller. Each party must have one witness to acknowledge the contract.

For the signing of a home or land purchase and sale agreement, even though the signature section may appear at the end of the contract, in cases where the contract consists of multiple pages, it is advisable to sign each page for documentation purposes.

Today, our page is presenting information about Home Purchase and Sale Agreement, hoping that it will be beneficial for all of you who come here to read. Additionally, The Property Center page also has many other great articles that you can read. If any of you are looking to find a house or other real estate, you can entrust your property to us for sale. We have clients contacting us every day, and we will professionally handle the work on your behalf. The Property Center warmly welcomes all homeowners. We have a team that posts on various online media platforms and creates advertisements in newspapers and marketplaces. These services are free, and we only charge a commission fee of 3-5%. Please contact us promptly.

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