The condominium purchase price definition in a pre-construction sale and purchase agreement.
An ignored aspect of a sale and purchase agreement in an off-the-plan condo purchase is possible price differences between the contract price and the final price of the condominium upon completion. The sale and purchase contract for a condominium under construction will usually state that the final price of the condominium will be based on the final floor area of the condo, as measured in the official land office survey and as will be stated in the unit title deed.
The actual building sizes of the completed building does not always match with the measurements of the original plans of the condominium building and price differences of op to 10% could occur.
A standard clause in a condominium sale and purchase agreement is:
'In the case where the area of the condominium unit to be sold varies from the saleable area shown in the relevant title deed, the parties shall continue to be bound by this agreement and shall in no case terminate the agreement on the grounds of such variance. In addition, the parties agree to adjust the purchase price to correspond to the increased or decreased area at the rate of the purchase price per square meter as mentioned above.'
This part of the agreement is negotiable and it is recommended to include a limit to the possible increase of the purchase price.
What is the final floor area of a condominium
Final floor area according to the Condominium Act and as stated in the unit title deed is not the exact use-able floor area of a condominium unit. The official floor area of a condo is measured from the center of the walls of the unit that are not joint ownership under section 13 Chapter II of the Condominium ActSection 13 ....floor, partition wall of the room dividing any apartment shall be regarded as joint ownership between the said apartments and the exercising of the rights concerning the said property shall be in accordance with the regulations..... The outside structure of a condominium is common joint ownership of the condominium, the adjoining walls between the units are for 50% private ownership belonging to the floor area of the unit.
Note that developers in Thailand are very quick in demanding the price difference according to the final floor area as measured by the official land office survey upon completion of the condominium if this is in their advantage. If the purchase condominium contract price decreases they usually do not refund or not easily refund the price difference to the customer.
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