Reservation Form for house purchase

[poobear]

Hi I am in the process of buying a second hand house in my wifes name through an agent from lazudi. We have inspected the house and have made an appointment to sign a purchase agreement tomorrow. Instead of a purchase agreement the agent informed us that we would be signing a Reservation Form that required full deposit. Since we have purchased many houses and properties here and have never heard of this we asked to send us a copy of the contract they expect us to sign. After a little back and forth they sent me a contract from another client from a different property signed a few days ago.  

 It is a page and a half contract that give very basic information and does not even include closing date, specifics about breach of contract, who holds the deposit in the event of breach of contract how long till I get deposit back ect. ect. ect . It is far inferior to the simple 50baht contract we usually buy at the stationary store.. We have no intention on putting a deposit down on a contract that is just downright vague.

 

 I used to thing that Thai real estate laws were  arcane until I went to school for my real estate license. Basically the real estate laws here almost the same as the real estate laws in the States and not complicated at all.  Hopefully we will sort this out tomorrow with out wasting too much more time and boiling over. Thanks for letting me vent

[soi3eddie]

What advice has your lawyer given you regarding this?

 

[Dan O]

Its not a purchase contract at all but a reservation to hold your money pending a real enforceable purchase contract is presented. I suspect it allows the "seller" to accept and review other offers while they hold your money and allows them to backout while locking up your money. I would never sign that as it's not necessary. You see this more in pre-construction developments on occasions and are basically worthless to you. 

[poobear]

2 hours ago, Dan O said:

Its not a purchase contract at all but a reservation to hold your money pending a real enforceable purchase contract is presented. I suspect it allows the "seller" to accept and review other offers while they hold your money and allows them to backout while locking up your money. I would never sign that as it's not necessary. You see this more in pre-construction developments on occasions and are basically worthless to you. 

The contract sent to me is way too vague to spell out the terms if the seller pulls out but is quite clear that I lose my full deposit if I do. The only supposed protection noted is "the reservation contract is refundable if the due diligence is failed"    No specifics,  No closing date, ,no time limit for inspection ect. , no review of contract.  This already failed before i signed  No Way!!!

 

If they can present a sound purchase  contract I will buy. If not we walk.

[Dan O]

41 minutes ago, poobear said:

The contract sent to me is way too vague to spell out the terms if the seller pulls out but is quite clear that I lose my full deposit if I do. The only supposed protection noted is "the reservation contract is refundable if the due diligence is failed"    No specifics,  No closing date, ,no time limit for inspection ect. , no review of contract.  This already failed before i signed  No Way!!!

 

If they can present a sound purchase  contract I will buy. If not we walk.

Yes its a loaded deck against you. The seller or agent that cooked this up should be ashamed as it serves no purpose toward making and closing a sale and only appears as a "legal scam". 

[poobear]

We went to the realtors office today and explained I would neverr sign the contract presented to me. 

First I asked why it is %100 english when my wife is purchasing property. I was going to keep my mouth shut but I said that since it was in english I would explain how pathetic  (vague) the contract was and I would only sign a purchase agreement.

 

They to

 

They explaing that they always use this contract, first you put down 200,000baht and then an additional 30%  when the purchase agreement is signed. The agent never told me that. It's only a million plus oversight.

 

Then I learned about the many things this contract would for us.  None of it was actually written in the contract but not to worry.

 

Then when I asked who the hell would sign this I learned that "many people sign this, like when the purchase a property and are in a hurry  and are on the way to the airport"

I kid you not!! I told them that I had all the time in the world and was not off to the airport.

 

Of course in the end they will draw up the proper documents and we will do our own due diligence before we sign. This is our 12th real estate transaction in Thailand and first ridiculous contract.

[BostonJoe]

Same exact scenario we had they wanted a  200000 baht reservation and couldn't produce a chanote for us.  The agent started to push way to hard for that reservation to be paid. We walked away   Found a much nicer house for sale bu the owner  Super easy deal

[KhunLA]

I've never given a deposit for any property I bought (USA), as I've never been offered anything for it, other than receipt/sales agreement.  Worth as much as the paper it's written on.

 

Here, house builds, it was pay as they build.  Next phase, next payment.  Only the first, very partial in advance, and only because, dealing with small independent builder. That was simply for the initial materials & labor for the foundation.

 

Daughter's townhouse, require 5k a month, for 6 months to reserve till closing.  And refundable if financing decline, or simply changing her mind...supposedly.  But all of 30k baht, for a 2.8m baht sale.

Edited October 5, 2022 by KhunLA

[poobear]

I am still waiting for the  Lazudi to get the purchase contract to me. We have been promised the contract three times and each time, no contract forwarded to us and no explanation. I would have already walked but the choices here along with the housing stock here is so weak and I am quite limited on the houses I am willing to buy.  I don't  understand how people in so called professions can be so rude and unprofessional.

[poobear]

update: I received a rough draft of a contract at about 10 P.M.