Scenario: Buying condo from Foreigner who is privately financing with Thai Chanote holder?

[NRek]

Hello,

 

Done a search on forums if this scenario has been discussed before, but didn't find anything, so here goes:

 

If a Foreigner is selling a condo:

 

- They are currently living in

- Purchased through a private financing agreement with a Thai Individual.

- Finance agreement/contract to complete soon.

- Thai individual is the chanote owner.

- Chanote is kept with Lawyer to be released on completion of finance contract.

- Condo Building has a foreign quota for this unit so can in theory be transferred to Foreigner title.

 

Is this getting legally complex for another Foreigner to purchase? It looks like standard process of handling payment via the Land Office etc is not going to work out for all parties? or can it be possible?

 

Anybody came across such a scenario before? Would anybody know of any reputable lawyers or agents that could help?

 

Many thanks, 

 

Maybe this opens up some interesting discussion, and maybe to help others in similar situation as I couldn't find much info on forum.

 

[Peterw42]

So long as the foreigner owns the condo on the day you go to the land office and there is foreign quota in the block, its just a normal sale like any other.

 

The foreigner will of course need to complete his contract and transfer to himself etc, before he sells to you. There will be 2 lots of transfer fees paid , thai to foreigner then foreigner to you but so long as you are only involved in the transfer fees to you.

 

I dont think you could entertain the sale direct from the Thai to you as complications with foreign funds to purchase in quota etc. I presume the Foreigner has already paid, so he would need to get his money back then you pay etc.

Edited February 11, 2019 by Peterw42

[NRek]

1 hour ago, Peterw42 said:

So long as the foreigner owns the condo on the day you go to the land office and there is foreign quota in the block, its just a normal sale like any other.

 

The foreigner will of course need to complete his contract and transfer to himself etc, before he sells to you. There will be 2 lots of transfer fees paid , thai to foreigner then foreigner to you but so long as you are only involved in the transfer fees to you.

 

I dont think you could entertain the sale direct from the Thai to you as complications with foreign funds to purchase in quota etc. I presume the Foreigner has already paid, so he would need to get his money back then you pay etc.

Thanks for your reply.

 

Yeah Foreigner -> Foreigner seems most realistic way and to keep things simple/standard practice.

 

In the event that finance is completed and Thai owner where to buy back/pay Foreigner, could a Foreign Buyer then complete sale with Thai, provided foreign quota is available?

 

At this point it would be a standard sale Thai -> Foreigner sale with Foreign Quota, completed at Land Office and payment at point of new chanote issued?

[Delight]

Condo Building has a foreign quota for this unit so can in theory be transferred to Foreigner title.

 

 

How do you know?

[NRek]

13 hours ago, Delight said:

Condo Building has a foreign quota for this unit so can in theory be transferred to Foreigner title.

 

 

How do you know?

This was just assumed from what foreign Seller said. Would be confirmed with JP of Condo building as 1 of first steps, if proceeding.

 

[KittenKong]

On 2/11/2019 at 7:49 PM, Peterw42 said:

The foreigner will of course need to complete his contract and transfer to himself etc, before he sells to you. There will be 2 lots of transfer fees paid , thai to foreigner then foreigner to you but so long as you are only involved in the transfer fees to you.

 

I dont think you could entertain the sale direct from the Thai to you as complications with foreign funds to purchase in quota etc. I presume the Foreigner has already paid, so he would need to get his money back then you pay etc.

Paying two lots of fees seems daft.

 

I would be inclined to have the existing financing/sale contract voided and the new farang owner can pay off the other farang for whatever he has paid and also pay off the Thai for whatever equity is left. Then the Thai sells the unit directly to the new farang, and that new farang will have an FET form to cover the full amount as required by the Land Office. So just one transaction for the Land Office and just one lot of LO fees/taxes.

 

Of course a lawyer would have be involved to ensure that the original contract and financing is cancelled and presumably that would be whichever lawyer is holding the chanote.

 

As for the ownership ratio in the building this should, of course, be clarified before doing anything at all. A debt-free letter will also be needed.

[RickTik]

7 hours ago, NRek said:

This was just assumed from what foreign Seller said. Would be confirmed with JP of Condo building as 1 of first steps, if proceeding.

 

You know what they say about the word "assume", don't you?

[AJBangkok]

You can transfer the condo directly from the Thai seller into your name and pay the money to the unregistered farang owner. The land office needs to see the letter from your bank saying you bought the money in to purchase a condo. You do not have give details of the condo in the bank letter or who you are buying it from it just needs to state you bought the money in to buy a condo. 

 

You obviously need to cooperate with the registered owner and the farang unregistered owner with both attending the settlement at the land office but you will just waste money by transferring it into the foreigners name then immediately transferring into your name as taxes and stamp duty will need to be paid twice. You will probably need to organize cashiers checks for the unregistered seller, any amount owed to the registered seller, and the tax/stamp duty. The seller may want cash for the stamp duty and tax. The seller should give you a breakdown.

 

if you are not confident get a property lawyer to represent you. It will cost you 20-30k ( maybe cheaper if you are not in Bangkok ) but it will get done.

[NRek]

2 hours ago, AJBangkok said:

You can transfer the condo directly from the Thai seller into your name and pay the money to the unregistered farang owner. The land office needs to see the letter from your bank saying you bought the money in to purchase a condo. You do not have give details of the condo in the bank letter or who you are buying it from it just needs to state you bought the money in to buy a condo. 

 

You obviously need to cooperate with the registered owner and the farang unregistered owner with both attending the settlement at the land office but you will just waste money by transferring it into the foreigners name then immediately transferring into your name as taxes and stamp duty will need to be paid twice. You will probably need to organize cashiers checks for the unregistered seller, any amount owed to the registered seller, and the tax/stamp duty. The seller may want cash for the stamp duty and tax. The seller should give you a breakdown.

 

if you are not confident get a property lawyer to represent you. It will cost you 20-30k ( maybe cheaper if you are not in Bangkok ) but it will get done.

Excellent..thanks for breaking this down. Yes, for myself I think a property lawyer at this cost would be worth it.