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Are you thinking of having a house built in Thailand?

Lawyers for Expats Thailand Property Law Division assist clients with property in Thailand

 Controls have been put in place for Residential Building Construction Agreements From 2017


We are still seeing many Construction Agreements that do not comply with the law and leave consumers exposed.

Measures where put in place to regulate and control the residential construction market.

These terms and conditions are for your benefit and protection as a consumer.

When choosing the builder as part of your due diligence first check the contract to see if it contains the required terms and conditions.


Lawyers for Expats Thailand provide due diligence free of charge as part of our property solution to protect you.

Contact Brian Ramsden General Manager of Foreign Affairs Lawyers for Expats Thailand Tel 0956583038


Effective from January 1, 2017, all contracts to construct residential buildings will be subject to contract control under the Consumer Protection Act B.E. 2522 (1979) and the Royal Decree Prescribing Bases and Procedures in Relation to a Business that is Subject to Contract Control and Description of a Contract B.E. 2542 (1999).


Under a notice published in the Government Gazette on November 14, 2016 (officially titled the “Notice of the Contract Committee Re: Prescribing the Business of a Residential Building Construction as a Business that is Subject to Contract Control B.E. 2559 (2016)”), any contract between a “business operator of a residential building construction” and a “consumer” for the construction of a residential building must contain all of the following terms and conditions:

 

Place of contract, date, the purpose of the building usage, design of the building, place of construction, and the details of both parties (e.g., name, address, identification/corporate registration number)

Price (inclusive of value added tax), and an obligation to find materials and equipment in accordance with the standards specified in the contract

Bill for quantity and price of materials

Payment installments

Period for obtaining the construction permit

Period of construction

The business operator’s warranty (five years for a structure and one year for non-structural parts)

The consumer’s right to amend the construction plan and the price for the amended plan

The business operator’s covenant to comply with the construction permit and plan.

 

 

In addition, the agreement must not contain the follow terms and conditions:

Waiver or limitation of the business operator’s liability

Waiver of the business operator’s written termination notice, or termination without any fault of the consumer

The business operator’s right to claim for payment before the due date, without the consumer’s default or breach of contract

The business operator’s right to amend the plan, price, or any conditions in the contract, in a manner that would place an additional burden on the consumer, without the written consent of the consumer

Non-refundable payment clause

A requirement to obtain the business operator’s permission or consent prior to the consumer’s inspection of the construction site

The business operator’s assignment of its obligations to others, without the consumer’s consent

A term granting the business operator ownership of any building, material, or equipment that is procured or paid for by the consumer

The consumer’s deemed acceptance of the work, in the event that the consumer fails to inspect and accept the work within the date prescribed in the contract.


If you have any questions the regarding the permissible terms and conditions within residential building construction agreements, or any inquiry related to property in Thailand or any legal matter, please contact Brian Ramsden General Manager of Foreign Affairs Lawyers for Expats Thailand Tel 0956583038 to arrange a Free Consultation






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