In Thailand, many investors enter into sale and purchase agreements for condominiums at an early stage of construction with the intention of reselling the completed property for profit.
If a new buyer appears before construction is completed and ownership is transferred, it is possible to enter into an assignment agreement with the developer and effectively replace the original buyer. What should be checked before “purchasing” such a contract:
1. Review of the primary agreement
It is important to carefully review the terms of the main contract. If they are not acceptable to the new buyer, it will be extremely difficult to amend them later.
2. Assignment clause
The agreement should include a separate Assignment clause outlining the conditions for transferring rights to the new buyer.
3. Verification of obligations under the contract
It is necessary to check how both the developer and the original buyer have fulfilled their obligations. By entering into an assignment agreement, the new buyer assumes all rights and obligations of the previous party. For example, if the developer has delayed construction or the original buyer has missed a payment, You will also inherit these consequences.
Execution of the assignment agreement
After reviewing the documents, an assignment agreement must be drafted, specifying the terms of the transfer of rights under the original contract. The developer must also be notified of the assignment in accordance with the contract terms.
The new buyer receives the original documents, which will later serve as the basis for registering ownership of the condominium upon completion of construction and issuance of the chanote (title deed).
For legal due diligence and drafting of assignment agreements, please contact:
+66 65 665 1970.