Paying For a House Process

[Neeranam]

I'm  buying a house soon and am a bit concerned about handing over millions of baht to the owner or agent. 

 

What is the procedure for doing this?

 

Do Thai banks give money orders,this might be a way?

[Mac Mickmanus]

How much money are you spending on your house ?

How many houses will you now own ?

[Swiss1960]

It is called a Cashier's check. It tells the recipient of the check, that the amount mentioned on the check has been debited from your account (your details are on the check), and that he can cash it at any bank he wishes. 

You go to the land office / DBD and show the check to the seller, then the documents for the sale get signed, handled to the government employee for processing, and when they come back signed and stamped, THEN you hand over the check and get the house documents (tabien baan, chanote etc.). Make sure that EVERYTHING is in order before you hand over the check (including handing over house and keys), because once you hand over the  check, there is nothing that can stop the seller from cashing it, disappearing and ghosting you in the future.

 

Been there, done it. Easy peasy. We met at the house, checked everything (inventory, working appliances etc.), he handed over the keys to me, we went to the DBD to sign over the company, he got the check, I got all documents (checked by MY lawyer), then drove to the house and changed all locks as my first task in taking over the house.

[Peterw42]

Its usually a cashiers check or bank transfer etc, done at the land office "as" your name gets put on the chanote. 

There isn't usually any huge amounts of money being handed over, outside of the land office transaction. If the sale doesn't go through, you dont hand over any money.

You can literally take a suitcase full of money to the land office, when your name is put on the chanote, you hand over the suitcase.

 

[Swiss1960]

3 minutes ago, Peterw42 said:

Its usually a cashiers check or bank transfer etc, done at the land office "as" your name gets put on the chanote. 

There isn't usually any huge amounts of money being handed over, outside of the land office transaction. If the sale doesn't go through, you dont hand over any money.

You can literally take a suitcase full of money to the land office, when your name is put on the chanote, you hand over the suitcase.

 

Cash is the standard in land offices, if somebody takes a loan and the land title is the collateral for the loan. I have done that also in the past (gives you a nice interest and you as foreigner are allowed to give out personal loans), and they have a cash counter in the land office (at least in Pattaya). People who take loans against their properties normally need cash pretty fast and can / don't want to wait of a check to clear.

[kwonitoy]

Same, Cashier's cheque, once the name is transferred cheque and keys change hands.

Don't forget the land transfer fee, payable to the Land Office, usually split between buyer and seller 50/50. Ours by agreement was cash by both parties.

[Neeranam]

5 minutes ago, kwonitoy said:

Same, Cashier's cheque, once the name is transferred cheque and keys change hands.

Don't forget the land transfer fee, payable to the Land Office, usually split between buyer and seller 50/50. Ours by agreement was cash by both parties.

Thanks, I heard Tax/Stamp Duty was paid by the seller. 

 

 

[Swiss1960]

4 minutes ago, kwonitoy said:

Same, Cashier's cheque, once the name is transferred cheque and keys change hands.

Don't forget the land transfer fee, payable to the Land Office, usually split between buyer and seller 50/50. Ours by agreement was cash by both parties.

That is what I love about company transfers. The fee at the DBD is absolutely minimal (few thousand Baht to change the directors and shareholders of the company), and the seller is responsible to pay any tax for the profit from the company sale. If the chanote is in the company name, there is no need to go to the land office.

[Neeranam]

Thanks all, what about if using an agent, are they paid a standard 3%? Maybe thy just take some cash from the sale price?

[Neeranam]

54 minutes ago, Mac Mickmanus said:

How much money are you spending on your house ?

How many houses will you now own ?

Not important to my question.

I'm buying my 3rd house, but the first in my name. I will have 3, but plan to sell one. 

[Neeranam]

45 minutes ago, Swiss1960 said:

You go to the land office / DBD and show the check to the seller, then the documents for the sale get signed, handled to the government employee for processing, and when they come back signed and stamped, THEN you hand over the check and get the house documents (tabien baan, chanote etc.). Make sure that EVERYTHING is in order before you hand over the check (including handing over house and keys), because once you hand over the  check, there is nothing that can stop the seller from cashing it, disappearing and ghosting you in the future.

 

Been there, done it. Easy peasy. We met at the house, checked everything (inventory, working appliances etc.), he handed over the keys to me, we went to the DBD to sign over the company, he got the check, I got all documents (checked by MY lawyer), then drove to the house and changed all locks as my first task in taking over the house.

Thanks for the detailed answer to my questions! 

 

I'm a little wary of the land office, as they have the reputation for being the most corrupt in the kingdom. 

[Swiss1960]

3 minutes ago, Neeranam said:

Thanks for the detailed answer to my questions! 

 

I'm a little wary of the land office, as they have the reputation for being the most corrupt in the kingdom. 

Well, I don't know about the corruption part. What I can tell you:
- an AGENT would normally be used by the seller to promote and sell his land, so the seller would have to pay any commission to the agent, not you as the buyer
- engaging your own LAWYER is what I would do. Not only can he do the due diligence for you prior to even signing the contract (like checking the land marks, chanote etc), but he will be the one actually talking with the land office staff while the sale is completed. AND your lawyer will be cheaper than the 3% that an agent might want. 

[Johnny Mac]

Here he is again talking about money. Yuk.

[Neeranam]

37 minutes ago, Swiss1960 said:

Cash is the standard in land offices, if somebody takes a loan and the land title is the collateral for the loan. I have done that also in the past (gives you a nice interest and you as foreigner are allowed to give out personal loans), and they have a cash counter in the land office (at least in Pattaya). People who take loans against their properties normally need cash pretty fast and can / don't want to wait of a check to clear.

 I wouldn't feel comfortable withdrawing and carrying 10,000+ bank notes, would need to hire a security guard.

[Peterw42]

18 minutes ago, Neeranam said:

Thanks all, what about if using an agent, are they paid a standard 3%? Maybe thy just take some cash from the sale price?

Any commission paid is between the agent and the seller, nothing to do with the buyer

[Neeranam]

2 minutes ago, Johnny Mac said:

Here he is again talking about money. Yuk.

Stop trolling, there is an 'ignore' function, or perhaps you want to tell your hard luck story again.  

 

 

[Peterw42]

21 minutes ago, Neeranam said:

Thanks, I heard Tax/Stamp Duty was paid by the seller. 

 

 

Its not carved in stone, and often negotiated as part of the sale. seller may agree on a cheap price but insist buyer pays the tax.

[Neeranam]

Just now, Peterw42 said:

Its not carved in stone, and often negotiated as part of the sale. seller may agree on a cheap price but insist buyer pays the tax.

Right, that's what I'm trying to find out; I don't want to be the loser in negotiation tactics. 

[donx]

When my wife bought some land in 2007, the seller paid for all of the transfer fees. However, for some reason, the seller requested that the cashier's check come from a specific bank. I remember my wife having to get a cashier's check from her bank, deposit it into her relative's account, and then have the relative provide the cashier's check from the bank approved by the seller.

 

I don't know if anyone else had this happen, but you might want to make sure that the seller will accept the cashier's check from your bank. I can't see why this was an issue, but it was for my wife's transaction.

[Aussieroaming]

We paid with a cashier check for the full amount.

[1FinickyOne]

We have always sat w/seller at the land office and transferred funds there, often cash for pieces of land.. tax is usually split 50/50 - broker fee is usually paid out of the price by seller.. 

 

never once had a problem... 

[khunPer]

On 9/7/2021 at 5:00 AM, Neeranam said:

I'm  buying a house soon and am a bit concerned about handing over millions of baht to the owner or agent. 

 

What is the procedure for doing this?

Normally cash or cashier's cheque are handed over when title deed with buyer's name on back is received. Seller pays tax and stamps, buyer pays transfer fee, but it can be agreed different.

 

You mentioned that this is your third house, how did you pay the last two you bought?

 

I used to pay cash, less the deposit, and when I sold I got a cashier's cheque from buyer's bank, who had representatives present at land office that gave me the cheque, as buyer needed a mortgage.

 

If you pay cash you might need to order cash money in advance, as some banks limit cash withdrawals to 1,999,999; i.e. you pay 1 baht and get 2 million. If you withdraw cash from another branch than your home branch, there might be lower limits, for example 200,000 baht. Agree with seller if a cashier's cheque will be accepted, before you meet in the land office.

[khunPer]

On 9/7/2021 at 7:26 PM, donx said:

When my wife bought some land in 2007, the seller paid for all of the transfer fees. However, for some reason, the seller requested that the cashier's check come from a specific bank. I remember my wife having to get a cashier's check from her bank, deposit it into her relative's account, and then have the relative provide the cashier's check from the bank approved by the seller.

 

I don't know if anyone else had this happen, but you might want to make sure that the seller will accept the cashier's check from your bank. I can't see why this was an issue, but it was for my wife's transaction.

Seller might wish a cashier's cheque from seller's own bank, as it can be instantly converted to cash in an account, whilst a cheque from another bank need to be cleared first, which can take a day or several days; furthermore seller might not trust a bank-cheque, which is nothing than a piece of paper saying that "I owe you"...????

[donx]

1 hour ago, khunPer said:

Seller might wish a cashier's cheque from seller's own bank, as it can be instantly converted to cash in an account, whilst a cheque from another bank need to be cleared first, which can take a day or several days; furthermore seller might not trust a bank-cheque, which is nothing than a piece of paper saying that "I owe you"...????

Yes, I believe the sellers only wanted a cashier's check from their bank for the reasons you state above.

[gamb00ler]

When the wife bought the plot for the new house she asked the seller how he wished to be paid.  His reply was almost all as cashier's cheque and the remainder in cash to pay the transfer fee at the Land Office.  The transaction occurred at the Land Office.  I don't think the seller cared which bank issued the cheque.

 

I hope all goes well in your transaction.

[Delight]

Can I assume that the house will be in a Thai persons name?

[Jenkins9039]

On 9/7/2021 at 10:00 AM, Neeranam said:

 

Do Thai banks give money orders,this might be a way?

Go with cash, its always funny watching everyone stare.

[brianthainess]

On 9/7/2021 at 10:00 AM, Neeranam said:

What is the procedure for doing this?

 

Do Thai banks give money orders,this might be a way?

Yes Thai banks do, and we handed the cheque over at the land office to the owner. Note you can only get a refund on your cheque, if not used, at the bank where it was issued.

[brianthainess]

On 9/7/2021 at 10:04 AM, Mac Mickmanus said:

How much money are you spending on your house ?

How many houses will you now own ?

Yes he was on about the house he "owned" before in previous post. Now asking how to buy one ???? 

[Neeranam]

13 hours ago, Delight said:

Can I assume that the house will be in a Thai persons name?

Yes, mine.