Is This Fair ?

[Saiyan]

There is a distant relation of the wife who stays very close to us that has 25 rai of land.

He is 67 years old and his property is Sou Po kou. At his age he is not very active on the land and his current wife has no interest in the land either.

He has made an agreement with a rather wealthy Thai shop owner and land owner for 20 rai of the 25 rai. The deal was made on an official government loan agreement document signed by both parties and by a witness and expires at the end of this year. However there is no stamp on the document.

This is how the deal reads :-

The shop and land owner has lent the relative B100,000. To be paid back after 4 years.

For this money he can use 20 Rai of land free for 4 years.

No interest on the money owed.

If after 4 years the relative is unable to repay the loan the lender is entitled to take the borrower to court for the 20 Rai of land if he does not agree to sign over the land.

Character references (IMHO)

The relative is not very educated. As can be seen above but is a nice enough guy. He believes that he will find a way to repay the loan, yet to date he has no money to his name and has spent the money on various failed projects. The only source of income that he has is a commission that the wife gives him to sell various food items. This is probable enough to keep him and his wife alive with his small pension. (IMO there is no way that he will be able to repay the loan)

The shop and land owner seems to be a nice guy as well. Obviously educated and is personally active in the in all aspects of his businesses. I don’t know him well enough to give a fair assessment of his character except to say that he seems to be a “business is business” type of guy so I think that he will probably go for the property if push comes to shove.

Now the property in this area sells for B10,000 per rai. For 20 rai it would be B200,000.

The normal rental is B1,000 per rai per annum.

Had the lender rented the property for 4 years he would have paid B80,000.

So in reality he would attain the 20 Rai for B20.000 at the end of 4 years.

I have no real interest in this case at this stage except a sneaky suspicion that I might be roped in financially to save the situation at a later stage, (maybe) and then I will have to make a decision.

Although all above seems to be legit, I am really concerned that this type of deal is actually legal. Is this not the kind of deal that takes advantage of the uneducated or is my way of thinking incorrect? Is this the accepted way of attaining property?

I’m sure that if you wave B100,000 in front of uneducated people, 70 % of them would grab the money and to he-l with the consequences.

[blizzard]

buznit is buznit. not the edukated persons fault that other person may not be buznit savvy.

funny as i was reading i was thinking you would be the savoir.................lol. maybe man is smarter than you think...........lol.

[Saiyan]

buznit is buznit. not the edukated persons fault that other person may not be buznit savvy.

funny as i was reading i was thinking you would be the savoir.................lol. maybe man is smarter than you think...........lol.

Maybe.

But do you really think there is nothing wrong with this deal ?

[dr_Pat_Pong]

In a legal sense I doubt that an enforceable contract exists, but given the vagaries and peculiarities of the Thai law system/s you really need to be hunting up an independent Thai lawyer ( very independent ... not at all acquainted with the businessman ) That will cost a shipload less to ascertain than getting into the Mother Theresa role and saving the day.

[Saiyan]

In a legal sense I doubt that an enforceable contract exists, but given the vagaries and peculiarities of the Thai law system/s you really need to be hunting up an independent Thai lawyer ( very independent ... not at all acquainted with the businessman ) That will cost a shipload less to ascertain than getting into the Mother Theresa role and saving the day.

I agree 100 %. Your first sentance confirms my suspicions and I will avoid at all costs at getting involved in the Mother Theresa role. I might have to travel several kilometers to find that all elusive lawyer though. Thanks for your input.

[old wanderer]

My wife has amassed quite a bit of land over the past 10 years doing exactly what the OP related. She will loan money for several years, and at the end, when the money is not re-paid she takes the land. However, about 70% of the time she makes a deal with the original owner to farm his old land and we make a percentage of the crop, and the original owner has some income.

I sit back with thinking about how a rural village girl, that was allowed only 4 years at school, has become the most respected person in her village and largest land owner. Natural intellectual capabilities, a desire to be successful, all play a part naturally, and we do rub some of the "rich" Thai's that have been making a practice of accumulating large holdings. and bit, but they will get over it.

As for the OP, why not just make a deal with the owner to pay the loan, plus a bit more for the other 5 rai, and give him a USEFRET, so he can continue to have use of the land for the few years he has remaining. Everybody benefits this way. When he is gone, you can easily double your money, better than any bank interest you might get.

[Saiyan]

My wife has amassed quite a bit of land over the past 10 years doing exactly what the OP related. She will loan money for several years, and at the end, when the money is not re-paid she takes the land. However, about 70% of the time she makes a deal with the original owner to farm his old land and we make a percentage of the crop, and the original owner has some income.

I sit back with thinking about how a rural village girl, that was allowed only 4 years at school, has become the most respected person in her village and largest land owner. Natural intellectual capabilities, a desire to be successful, all play a part naturally, and we do rub some of the "rich" Thai's that have been making a practice of accumulating large holdings. and bit, but they will get over it.

As for the OP, why not just make a deal with the owner to pay the loan, plus a bit more for the other 5 rai, and give him a USEFRET, so he can continue to have use of the land for the few years he has remaining. Everybody benefits this way. When he is gone, you can easily double your money, better than any bank interest you might get.

Well if this is the case then it seems the accepted thing to do. That actualy was my question.

However, how legal it is may be something different. Looks like your sugestion is one of the ways to go. If possible I would like to keep the legal wrangle out of this to prevent any ill feelings all round.

Either way I sense an involvement.

Funny when I offered to lend the Land owner money for 200 rai on the same basis he smiled (knowingly) and said "No thank you" very politely.

[dave111223]

Pay back the 100,000 for them and they'll probably have a similar deal re-sign by the end of the week

[Saiyan]

Pay back the 100,000 for them and they'll probably have a similar deal re-sign by the end of the week

Many a true thing said in jest. If it was in jest.

[Johpa]

Looks to me like you and your wife can pick up 20 rai of land worth 200K for only 100K and thus be able to afford to let Khun Lung stay on his property. You just need to decide who is going to profit from the situation.