A contract binds one party with another or to a multitude of parties making the document very important. The document also contains the duties and responsibilities of the involved parties warranting its review to be a standard practice way before it is signed.
Importance of Reviewing Contracts
There may be an instance when the seller of the property and its buyer have agreed verbally or through a written document of a certain condition yet somehow on the final draft of the contract agreement, the said condition is not included.
To avoid this instance, a review of the draft contract should be undertaken by a qualified individual, a property lawyer, to check whether the agreement has been reflected on the document. If it is not then the lawyer can motion for it to be included as well as to suggest changes on the draft to forward his client’s interests and rights.
Furthermore, the lawyer can also check if all of the contract’s contents do not violate or reduces the rights and interests of his client nor the provisions of the applicable Thai laws. And lastly, the lawyer can translate legal and Thai terms used on the contract to make sure that buying individual has a clear view and understanding of its contents and of his and the seller’s obligations.
The other party may claim that their contract is standard and while this may be true, it is still very important to have it reviewed by an experienced property lawyer.
The foreign acquiring party
Generally, foreigners are not allowed to purchase and then register lands on freehold under their names. Nonetheless, since they are allowed to secure lands on other structures such as leasehold or to purchase condominiums, contract reviews should also be standard to them especially that they do not have extensive knowledge on Thailand’s property laws and procedures.