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What is the consequence of 'and or' in the condominium sale agreement?

I signed a sale and purchase agreement for condo Thailand together with my Thai wife. We are buying the condo together from the developer. The contract refers to us as buyers together, but also that we could be separate buyers. I 'and/or' my wife who is a Thai national is the buyer of the condo. Are there any benefits for wording the contract like this?
Category: Buying a Condominium
condo purchase
Asked 11 years ago
Guest
bangkoklawonline

Answers (1)

Foreign ownership of condos in Thailand is limited to a quota of 49% of the aggregate unit floor area of all apartments in a condo project combined, in case of 100 equal units not more than 49 can be foreign owned. More than half of the condominium must be Thai owned. When the condo is registered your name or in both your names as joint ownership between husband (foreign) and wife (Thai) this will be registered within the 49% foreign ownership quota of the condominium. Foreign ownership must in this case be available. When it is filled up you or the developer may still request the transfer of ownership to the name of your Thai wife. The wording in the sale and purchase agreement could mean that when at the time of ownership registration of the condo there is no foreign ownership available you are still bound by the contract and the developer can under the terms of the contract still register ownership of the unit on your wife's name. The foreign ownership quota does in this case not apply. In this case you will likely be asked to sign a declaration together with your wife at the land department that the money expended on the condo is your wife's and that the unit will be registered as a a personal property of your wife, if not it would technically be jointly owned as a marital property with the foreign husband and therefore fall within the foreign ownership quota. The 'and/or' option in the sale agreement could also relate to getting a loan with a mortgage registration from a Thai bank. Getting a mortgage for the condo in a foreigners name with a Thai bank is practically impossible, even though married to a Thai national. The Thai bank may request that the unit is registered in your Thai wife's name as a personal property solely before they are prepared to provide financing for the condo. If the above is not the case, the sale contract for the condo should clearly mention that it is a Thai or foreign freehold sale, and not and/or.
Answered 11 years ago
Consultant
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