“Under contract” in Bangkok’s real estate market is a type of pending sale. Buyers and sellers agree on terms.
The agreement initiates a binding contract. This concept differs from “available” properties, which lack such agreements. “Under contract” properties are not open for new offers, whereas “available” properties are.
Key under contract features include a due diligence period, earnest money deposits, and contingency clauses. During the due diligence period, buyers inspect the property’s condition.
Earnest money deposits secure the buyer’s intent. Contingency clauses allow contract cancellation under specific conditions.
These features are common in Bangkok for both residential and commercial transactions.
Unusual features of under contract properties in Bangkok may include specific customization rights, transferable booking fees, and foreign quota availability checks. Customization rights permit buyers to request changes before finalizing the sale.
Transferable booking fees allow initial deposits to be passed to new buyers if the original buyer withdraws. Foreign quota availability checks ensure that the property adheres to the foreign ownership laws in Thailand.
Unique to under contract properties are developer buy-back guarantees, specific completion guarantees, and access to rental guarantee programs. Developer buy-back guarantees offer to repurchase the property within a certain period.
Completion guarantees ensure the project’s finish by a set date. Rental guarantee programs provide income for investors during a specified term.
“Under contract” features, such as earnest money deposits and contingency clauses, are similar to those in lease agreements and rent-to-own contracts. However, under contract properties emphasize ownership transfer more directly than lease agreements, which focus on temporary occupancy rights.
Unlike rent-to-own contracts, under contract sales often involve shorter timelines and fewer long-term payment plans.
For further information, consider our glossary about Bangkok real estate for detailed definitions and more on navigating Bangkok’s real estate market.