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Fees and taxes charged by the land office on ownership registration


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Posted (edited)

According to SamuiForSale, when purchasing a house in an official licensed housing project, under consumer protection laws  the developer is responsible in full for specific business tax and income withholding tax and at least half of the 2% transfer fees charged by the land office for ownership registration. 

I have searched and searched for the specific consumer protection legislation which confirms this apportionment but without success. Can any one help? Thanks in advance.

Edited by malcolminthemiddle
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I don't think what you stated is mandated in legislation, but it is customary.  However, who pays what fees is always subject to negotiation between buyer and seller.  Come to an agreement with the buyer or seller over the issue.  

In my case I paid no taxes or fees when purchasing my freehold condo unit.  I agreed to split the transfer fee with the seller (developer) but at the time the government was all but waiving this particular tax in an effort to stimulate the market so when it came down to actually paying the seller paid the incredibly small amount, a couple hundred baht, of this fee himself.

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OP, who pays what fees/taxes isn't covered by law, its more a case of the usual arrangement. Its all up for negotiation. In fact, most lower priced condo purchases, its pretty standard for 50/50 of all fees and taxes.

Buying from a developer, it should be all specified in the sales contract., included in the price etc.

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Posted (edited)
7 minutes ago, Peterw42 said:

OP, who pays what fees/taxes isn't covered by law, its more a case of the usual arrangement. Its all up for negotiation. In fact, most lower priced condo purchases, its pretty standard for 50/50 of all fees and taxes.

Buying from a developer, it should be all specified in the sales contract., included in the price etc.

Yes, this should be specified in the Sales Contract, who pays which fee/tax.  Mine originally split almost all the fees equally.  I had it changed to make the owner responsible for all fees/taxes except the transaction fee which we agreed to split.  Bear in mind it's a buyer's market these days so one would naturally expect terms will be most favorable to the buyer.

Edited by skatewash
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Posted (edited)

Thanks for the replies. 

Without specific legislation, an argument could be made that expecting a buyer to pay a share of a Developers specific business tax and income withholding tax on the sale of a new property in a licensed project is unfair and contravenes the right of the Buyer under the Consumer Protection Act to have a “fair contract”?

If the buy and sell contract, in a form provided by the Developer, stipulates the buyer shall pay a share of the Developers liability for specific business tax and income withholding tax an argument could also be made this provision is null and void under Section 34 of the Land Development Act which disallows unfair conditions in a buy and sell contract that is not in the form prescribed by the Central Land Department?

Any thoughts?

 

 

Edited by malcolminthemiddle
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37 minutes ago, malcolminthemiddle said:

Thanks for the replies. 

Without specific legislation, an argument could be made that expecting a buyer to pay a share of a Developers specific business tax and income withholding tax on the sale of a new property in a licensed project is unfair and contravenes the right of the Buyer under the Consumer Protection Act to have a “fair contract”?

If the buy and sell contract, in a form provided by the Developer, stipulates the buyer shall pay a share of the Developers liability for specific business tax and income withholding tax an argument could also be made this provision is null and void under Section 34 of the Land Development Act which disallows unfair conditions in a buy and sell contract that is not in the form prescribed by the Central Land Department?

Any thoughts?

 

 

Tell the developer that you don't want this contract and tell them your terms. They either agree or not, then it is up to you to buy or not to buy.

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