Money transfer when buying Condo if the seller has a mortgage to be paid off

[UKPaul67]

When paying for a condo, and the money via FET cheque is to the seller at the land registry, but they have a mortgage and the bank has an interest in the condo.

Does anyone know what happens if the seller does not pay the bank.

Or how does the bank get the balance remaining.

 

Secondly has anyone every brought a condo through a Law firm which uses Power of attorney and Escow payment to the Law firm to pay for the Condo, as I do not have a thai bank account and out of the country for 3 months.

[problemfarang]

hi

First of all you mentioned something about buying your condo using a law firm. If so i dont know what im going to comment is ok or not in your situation. Thats something first time i heard. 

 

i will make my comment for a house not a condo. I dont know if its the same or not. I know many will say farang cannot have a house. I know that. But im talking about the mortgage for the houses. thats the point. Because you have the same thing.

 

First of all if you have a house and buy it with mortgage you can rent it without any problem. But there is no way you can sell to another one without closing the mortgage. The way you wrote i believe you bought the condo while still have mortgage to pay. Is this something like both sights sign a contract accepting that after the house payment finish the owner will change the name on you? and did you this with a law firm contract? If so did you choose this way because you cannot take mortgage from the bank because you are farang?

 

now at this point the condo is under the bank name and the mortgage is under the real owner name which means if the owner stop paying the bank will send some warnings to the owner. for 2-3 months. then they will put a government official warning letter to the condo door saying this house is on the sell. and the bank will put the house on sell on their website. Now this is something many house owners do. My old house owner did the same thing. If the bank put on sell, it goes cheaper. So the owner dont pay and wait for the bank to put on sell and buy again very cheaper. At this point you have nothing to do. legally the house is not yours even though you made a contract saying you will have the house after paying the bank. Here do you pay the bank or you pay via the law firm or you are paying directly to the owner? if you are paying to the bank via mobile app you may have a chance to sue. If you paying via law firm.. i dont know but i dont think the case will be a short one on the court. 

 

did the owner notify or the law firm, about this situation? bank said ok? you have documents for this? Where are the original of condo document? I mean the contract between the owner and the bank, house book? 

 

there are many issues i think. Also i know that no one can sell a condo or a house at least 3 years after bought. its about profit and tax. If its 3 years old you must pay 5% for the name change. if its more than 5 yrs its 3%. did you pay this also? 

 

i would get another law office advice about this. i suggest siam law office. but there are many others. 

 

now totally my opinion: at this point i dont think even you have a contract or so on you are still not the owner what bank sees. because mortgage name is under the owner not you. if they have no confirmation about this i would say you have no rights. if what you scare happens you will know that the bank is selling the house right after 4-5 months the owner stopped paying. and with all the law firm and so on i believe this is a dead end case on court. 

 

i hope im wrong and im sure there are many people will make more and better comments and correct me if im wrong. 

 

good luck

[tomazbodner]

1 hour ago, UKPaul67 said:

Does anyone know what happens if the seller does not pay the bank.

Or how does the bank get the balance remaining.

You would purchase the cashier's cheques from the bank where you have a bank account. You tell them how much to put on each cheque.

When purchasing a condo that is not yet fully paid off, you would need to make 1 cheque to the bank for the amount owed (bank will provide details to seller what needs to be on that cheque), and the rest to seller (and possibly separately for any agents).

At the land office, a bank representative will be present and will accept payment in front of the officer, and unblock the chanote. Then the transfer fees will be paid (preferred in cash as the cashier's cheque has clearing fee), and seller is paid with another cashier's cheque. Actually pay any deposit with cheque as well and make a photocopy, then make seller sign they have received it. Just in case.

So, there's no issue, but you'll need to separate cheques between bank share, seller share, and any agents. And add the taxes in cash.

 

Process is likely to take an hour or so if all documents needed are provided.

[soi3eddie]

1 hour ago, UKPaul67 said:

Secondly has anyone every brought a condo through a Law firm which uses Power of attorney and Escow payment to the Law firm to pay for the Condo, as I do not have a thai bank account and out of the country for 3 months.

Both times I bought Condos in Bangkok (2009 and 2017), I sent the money direct from my UK account to my Thai lawyer's client account being sure to state on the transfer the purpose - such as "buying ABC Condominion, Full street address, Sub-district, District, City and Postcode". Also, be sure to send slightly more, in order to cover costs such as transfer fees and taxes (in full or shared). The lawyer will either keep the extra as part of their fees or reimburse you after title transfer. The last thing you want is the land department rejecting transfer of property on this technicality. I did remote Power of Attorney both times and Fed-Ex/DHL the signed document to the law firm. No issues at all. They were better than any solicitor/conveyancer I ever used in the UK! The law firm would do the necessary payment to the mortgage bank etc. at title transfer stage, leaving you with nothing to worry about.

 

Edited April 22, 2023 by soi3eddie

[ezzra]

The 3 posters above have given you all the info you need, do not pay any money unless the title is clear and you can verify it a 100%, anything else and you'll be asking for problem,

once the title is cleared send the funds directly from your country's bank account to the seller or the seller's lawyer account but only after you have a signed contact in place to show the intentions of both sides.

[scubascuba3]

Good answers above. I'd be nervous buying a condo with existing mortgage when outside the country, when in country you can check everything and see and talk to Land Office staff

[EVENKEEL]

The house I paid for, the seller had a bank note. On the day we (buyer, seller and bank rep) meet at land office. Bank rep got paid as paperwork was signed.

[UKPaul67]

Thanks guys, great answers ????

[RichExp]

If the seller skips on the mortgage, the bank might go for foreclosure. It's a bit nerve-wracking. Now, buying through a law firm with Power of Attorney and Escrow - smart move, especially if you're away. I get the Thai bank account struggle; been there.

[RichExp]

1 hour ago, RichExp said:

If the seller skips on the mortgage, the bank might go for foreclosure. It's a bit nerve-wracking. Now, buying through a law firm with Power of Attorney and Escrow - smart move, especially if you're away. I get the Thai bank account struggle; been there.

 Maybe connect with a mortgage advisor, like the folks at Mortgage Advice Liverpool, they could give personal advice based on your unique scenario.

[Delight]

 If the condo apartment has a mortgage  then the bank will hold the apartment title deed.

 Suspect that a meeting will  have to take place at the land office

You will need to bring your FET plus 3 cheques

One for the bank-one for the seller -one for the land office.

 

All can be resolved at this meeting.

Numbers have to be agreed ahead of this meeting.