Request for calculation of land transfer charges

[Delight]

Recently my wife's  Aunt transferred her land to her niece(i.e. my wife)

 

Technical. Land size 863m .About 30 kilometers west of Korat. Area is farming and up market housing.

The Aunt got the transfer free from her grandmother who in turn got it free  from her grandmother.

The land originally was simply acquired before the days of land offices etc.

At some point in the past a Chanote was issued.

 

I agreed to pay the transfer charges.

The family  guessed that the charges would be about 20,000 Baht. 

I thought the charges would be closer to 80,000 Baht. My calculation was derived from info which  appears on the net.

 

In the event for the transfer plus a Usufruct was just shy of 3000 Baht.

 

My question: Why were these charges so low?

[EVENKEEL]

Wouldn't the fees be based on sales price. So if no money changed hands that could explain things.

[Woof999]

I believe the fees are based on what the local authorities value the land / property at.

 

If not, all sales would be registered at 0 value and the money transfers would be done off the books to avoid fees.

[Delight]

2 hours ago, EVENKEEL said:

Wouldn't the fees be based on sales price. So if no money changed hands that could explain things.

Not really.

The fees are based on the appraised value or the sales price -which ever is the highest.

Looking on the web for small parcels of land-the sales price should be around 1.5 M Baht

 

Typical transfer charges are about 5% of the higher value.

On that basis the land is valued about 75000 Baht. Sounds a bit cheap.

 

 

 

 

1.5M Baht is not  expensive when -in my opinion-2 good size houses could be built on it.

The appraised is reviewed every 4 years-well that's the theory

 

Thanks for your input.

 

 

[yeahbutif]

When it changed with in family I was told no transfer charges. Just admin fee 

[Delight]

4 minutes ago, yeahbutif said:

When it changed with in family I was told no transfer charges. Just admin fee 

That makes sense.

Can you point to a we page that confirms your statement.

All I could find is  that land  -which is transferred thru inheritance -attracts no fee if the land is valued at less than 100M Baht

 

Also my wife is her niece -not her daughter.

My wife just showed her id card.

I had to sign copies of my passport and sign a document that I did not understand.

Also my wife had to confirm that it was her money-not mine. Strange since it was  a free transfer.

The only money was the 3000Baht transfer fee.

I could tell that the land office  female could not care less-about anything relating  to the transaction.

Maybe i was just lucky. I felt lucky!

[ripstanley]

The document that you signed and did not understand was to say that you did not give any money towards the purchase of the land. 

[yeahbutif]

13 hours ago, Delight said:

That makes sense.

Can you point to a we page that confirms your statement.

All I could find is  that land  -which is transferred thru inheritance -attracts no fee if the land is valued at less than 100M Baht

 

Also my wife is her niece -not her daughter.

My wife just showed her id card.

I had to sign copies of my passport and sign a document that I did not understand.

Also my wife had to confirm that it was her money-not mine. Strange since it was  a free transfer.

The only money was the 3000Baht transfer fee.

I could tell that the land office  female could not care less-about anything relating  to the transaction.

Maybe i was just lucky. I felt lucky!

I can't show you a link..as I was told this when me and my girlfriend tried to buy a house. Its turns out she could not buy the house because she was still married to  a man not seen for many years.so she Said let's put it in her mother's name .. and she can transfer to my girlfriend when she get divorced... I said we have to pay two lots of transfer fee she Said you don't pay when transferring to family... As for you to sign to say not your money.. this was our problem husband had to be there to sign

.. to say not his money... .

[yeahbutif]

13 hours ago, Delight said:

That makes sense.

Can you point to a we page that confirms your statement.

All I could find is  that land  -which is transferred thru inheritance -attracts no fee if the land is valued at less than 100M Baht

 

Also my wife is her niece -not her daughter.

My wife just showed her id card.

I had to sign copies of my passport and sign a document that I did not understand.

Also my wife had to confirm that it was her money-not mine. Strange since it was  a free transfer.

The only money was the 3000Baht transfer fee.

I could tell that the land office  female could not care less-about anything relating  to the transaction.

Maybe i was just lucky. I felt lucky!

Transfer property to family members 

Other than selling your property to someone else, property owners often desire to transfer their properties to someone else, where in most cases it will be for the children, parents, spouses and siblings.  

If you want to transfer the ownership of your property to family, you would not need to undergo the conventional transaction as it will be under the “love and affection transfer” (pemberian secara kasih sayang) – which is a term used for property transfer among family members. 

Love and affection transfer are for property transfers between spouses, parents and children. Through this transfer, there will be a certain exemption on stamp duty, as long as there is no Sale and Purchase Agreement (SPA) involved. 

[DodgerRodger]

appraised values are quite low, especially for farm land, here's a typical example from the lands office website

[DrDave]

My wife has been involved in several land transfers over the years.

One that was a transfer between family members that incurred only a relatively small administrative charge.

Another was for purchase of land and villa with substantial value that incurred what seemed to be very reasonable transfer fees, which I believe were somehow negotiated down by our lawyer who handled the transfer.

The most recent was a land-only purchase, for which we have the transfer documents showing that the land office applied a valuation that was less than the purchase price when calculating the fees.

[DrJoy]

On 2/17/2023 at 8:30 PM, Delight said:

 

I had to sign copies of my passport and sign a document that I did not understand.

Spousal consent for sale of land ( What you signed)

[Delight]

On 2/18/2023 at 10:22 AM, yeahbutif said:

Transfer property to family members 

Other than selling your property to someone else, property owners often desire to transfer their properties to someone else, where in most cases it will be for the children, parents, spouses and siblings.  

If you want to transfer the ownership of your property to family, you would not need to undergo the conventional transaction as it will be under the “love and affection transfer” (pemberian secara kasih sayang) – which is a term used for property transfer among family members. 

Love and affection transfer are for property transfers between spouses, parents and children. Through this transfer, there will be a certain exemption on stamp duty, as long as there is no Sale and Purchase Agreement (SPA) involved. 

 Your post is incorrect. The statement that you quoted in 'English language style script' is in fact the Indonesian language. Suspect that you are quoting Indonesian law.

However your post prompted me to seek information from  a Thai law  website.

their response is as follows:

Per you inquiry, yes, there are few exemptions or discounts if the ownership transfer are from family members; the transfer fee may be reduced to 0.5% of the appraisal value (originally 2%), the withholding income tax may be exempted, calculated on only parts over 20M THB or deducted by 50%. 

 

This I think answers my  original question

 

Thanks 

 

 

 

 

Edited February 21, 2023 by Delight

[KhunLA]

Why'd you expect the fees to be so high ?

863m² is just over half rai (800m²), so 1.5mill is quite an expensive guesstimate, for land 30km outside of Korat.  Is it farmland needing backfill or level with road, having water & electric, but still, can't see 1.5 mill price.

 

Sold 2 rai 15 kms out of Udon Thani center, maybe 8 pass ring rd, for 1,3 mill and I think xfr fees were 43k.

 

Appraisal is what ever land office says, for the area, but since family to family...minimal fees.  You can ask them, as they'll let you know, if selling is planned in the future.

[indyo]

I guess because the transfer is within the same family or they declared that.

[Delight]

On 2/21/2023 at 6:06 PM, KhunLA said:

Why'd you expect the fees to be so high ?

863m² is just over half rai (800m²), so 1.5mill is quite an expensive guesstimate, for land 30km outside of Korat.  Is it farmland needing backfill or level with road, having water & electric, but still, can't see 1.5 mill price.

 

Sold 2 rai 15 kms out of Udon Thani center, maybe 8 pass ring rd, for 1,3 mill and I think xfr fees were 43k.

 

Appraisal is what ever land office says, for the area, but since family to family...minimal fees.  You can ask them, as they'll let you know, if selling is planned in the future.

Used this figure to establish worse case scenario in relation to transfer fees

[Delight]

On 2/23/2023 at 8:04 PM, Delight said:

Used this figure to establish worse case scenario in relation to transfer fees

Now that I know the cost of transfer i.e 0.5 % of the appraised value and given that the transfer fee was 3000 Baht-then i can work it backwards to establish the appraised value.

it works out to be 600,000 Baht