Home purchase contracts: what to check from reservation to transfer day

Even after you sign the contract, the transfer still has to be registered

An outright sale of immovable property must be made in writing and registered with the competent official under Section 456. Having a reservation form or an agreement to buy and sell (สัญญาจะซื้อจะขาย) is therefore not evidence that the process of transferring ownership is complete.

As preparation, you should be able to tell which stage of the deal the document you are signing belongs to, what has to be done next, and when the registration appointment is. Do not read only the title of the document, because the details agreed in its content matter too.

Sources: Revenue Department: The meaning of immovable property and legal transactions (Section 456)

Check the house together with its documents, not just its address

Ask for the details of the title document, then check the name of the rights holder, the plot details and the registered entries with the Land Office. If there is a mortgage or another encumbrance, ask how it will be handled and who has to attend on transfer day to deal with it.

As for the house itself, compare what you actually see with the list of what you agreed to buy, especially extensions, parking and items the seller will remove. If you have doubts about the structure or about permits, have an expert inspect it and ask the relevant authority before accepting the terms.

What happens if the loan is refused? Discuss it before you pay

Do not start from the assumption that reservation money or earnest money will be refunded automatically in every case. If the purchase depends on a loan, agree on the conditions in writing, such as the date by which the application must be submitted, what evidence of the lender’s decision will be used, and, if the approved amount is lower than needed, how the deadline will be postponed, how the shortfall will be topped up, or how the agreement will be ended.

An example of the points that whoever drafts the contract should spell out in full is: “If the loan result does not meet the agreed conditions, who notifies whom, by when, which part of the money is refunded, and which costs may be deducted.” The details must be adapted to that particular purchase, and a short piece of wording should not be copied and used without checking the whole contract.

Make a table of the amounts and duties on transfer day

Separate the sale price, the money already paid and the remaining balance. Check the payment method with the bank and the seller in advance. If the house is still mortgaged, coordinate with everyone involved on how the mortgage will be redeemed and the registration handled.

Costs on transfer day come in several types, and the measures that apply may change over time, so ask the Land Office and the bank for estimates for your actual case. Then state clearly in the contract which party is responsible for which item, without assuming that everything is “split half and half.”

• The date and place of the registration appointment, and the conditions if it has to be postponed
• Who is responsible for preparing the original documents, a power of attorney or additional documents
• The amount payable, who receives the money, and the form of payment for each part
• How existing encumbrances, common area fees and utility bills are handled, and the date you start being responsible for costs

Set the house inspection and handover apart so they can be tracked

Make a list of the condition checks and the items that must be fixed before handover. State what will be finished before transfer day, what needs a follow-up inspection, and what evidence of acceptance there will be. On handover day, record the keys, remote controls, meter readings, warranty documents and the items included in the purchase.

If you find a problem that affects your decision, have an expert assess it and agree in writing on how it will be handled first. Do not rely only on a promise that the seller will come back and fix it after the transfer.