Signing out from a usufruct contract , selling property.

[kd2000]

Few years back my Thai partner and I had invested in a property (land and house).

The partner is an owner of the property. I'm then signed as life usufructuary on the land title.

We would like to sale that property now and we intend to share the amount in between us.

 

My question is how to protect my self from being unpaid after property get sold?

 

Ideal situation for me would be to sign out from land title on a transaction date and receive my payment at the same time.

The problem here is that most of people wants to pay with a bank credit and bank asks for a clean chanod in order to even accept an application. This would mean that I have to sign out from the land title ahead of the transaction without being certain of bank even granting the credit. So how can I protect myself?

[Farangwithaplan]

Could you arrange for 100% of funds to be added into escrow or a trust fund set up by the solicitor? Or have a stipulation on the sale contract regarding what percentage of funds are to be dispresed to what bank account?

 

I have no first hand experience on anything like this in Thailand, but they may be options to investigate. I'd be chatting to an independent legal advisor.

[tompelli]

Two bankers drafts & exchange at the land office. Bought our house with 4 bankers drafts as the house had been "pledged" to some money people in BKK.

[RedPill]

On 9/3/2019 at 1:26 PM, kd2000 said:

My question is how to protect my self from being unpaid after property get sold?

That's a good question.

 

I don't know how this works in Thailand, but in other countries where I have done this, the buyer is splitting the amount into 2 managed cheques, one on each name of the property owners, and hands them over at the time the property is transferred at the Land Department.

 

I know they operate with managed cheques in Thailand, that's what I did when I paid for my condo at the Land Department at time of transfer ...

 

But yes, how is this handled between 2 partners in a property sale in Thailand?

 

 

 

Edited September 4, 2019 by RedPill

[RedPill]

11 minutes ago, tompelli said:

Two bankers drafts & exchange

I take it that a bankers draft is the same as a managed cheque, different wordings?

 

Edited September 4, 2019 by RedPill

[khunPer]

On 9/3/2019 at 8:26 AM, kd2000 said:

My question is how to protect my self from being unpaid after property get sold?

In the land sales agreement stipulate that the balance, normally paid at land office upon title deed transfer, shall be paid by two crossed bankers cheque – also called cashier's cheque – with 50 percent each, and issued to the names of your partner and you.

 

A crossed bankers cheque need to be cleared through a bank account with the holders name only. 

 

The (often non refundable) deposit upon signature of sales agreement can be split cash in two half; the deposit can be anything from a relative smaller amount and up to 10-20 percent of the agreed sales price.

 

Make the sales agreement in three equal copies, one for buyer, one for your partner, and one for you. If defaulting in paying with two crossed banker's cheque, you can claim compensation from buyer, eventually let payment – i.e. physically delivery of cheques – only valid to a lawyer, i.e. a lawyer's office.

 

Only sign off your usufruct agreement after a sales agreement has been made, and deposit paid. A typically Thai sales agreement for land will include a clause of compensation in case seller won't sell, or buyer won't buy; often the compensation can be as high as the full agreed price of the land.

 

Please check conditions with a law firm, and eventually use a trusted lawyer/law firm to handle the sale.

 

Edit: Clearance time for a Thai banker's cheque is one or two days, i.e. fund will be at disposal one or two days after the check has been deposit into the named receiver's bank account.

Edited September 4, 2019 by khunPer

[kd2000]

Thank you for helping.

 

The buyer gets a bank loan to pay the house.

In this case cheque can be issued by bank for a seller name only. 

However, the bank agrees to review and issue the loan while Im still signed as usufructuary but with the condition that I have to sign out at the day of transfer on land office. This condition will be stated on sale contract.

 

Not a 100% protection as I will actually get paid after signing out but at least I will not be out in case of not granting the loan by bank.