Credit Check/search

[seasider]

Upon deciding to sell our condo, the wife said to me recently that when we do find a buyer that there is some form of credit check/search that is required to make sure there are no outstanding debts on the condo.

This apparently takes 5 working days,so effectively one week.As we are in the uk atm,this would mean her or both of us coming to thailand one week earlier in order to carry out the credit check.

Firstly, is she getting confused with the title deeds search? are they the same thing?

Secondly, if there is a credit search required before selling, does it really take it five working days?

Thirdly, could this not be organised while we are still in the uk,saving us flying out one week earlier and kicking our heels for a week waiting for the 'credit search' results?

Fourthly, she thinks this 'credit search' only applies to condos and not land

Lastly, do you think she is just angling for an extra weeks holiday?

[thaigene2]

Interesting questions - I hope to follow the replies. First time I've seen these and perhaps the correct answers could be pinned? Mods?

Edited March 27, 2008 by thaigene2

[Maestro]

I have never heard of such a thing as a credit check on a condo being sold. However, there are two checks that can be done by the buyer, as fas as I know:

1. At the land registration office, check if there is a lien on the property, ie a mortgage or other financial obligation.

2. At the condo’s Juristic Person Office, obtain a written statement regarding possible unpaid invoices for sinking fund, maintenance fund, etc.

It will be up to the buyer, not the seller, to make these checks.

--

Maestro

[seasider]

I have never heard of such a thing as a credit check on a condo being sold. However, there are two checks that can be done by the buyer, as fas as I know:

1. At the land registration office, check if there is a lien on the property, ie a mortgage or other financial obligation.

2. At the condo’s Juristic Person Office, obtain a written statement regarding possible unpaid invoices for sinking fund, maintenance fund, etc.

It will be up to the buyer, not the seller, to make these checks.

--

Maestro

Thx for the fast replies.

Actually i am selling some land in bkk, that will be sold soon, lot's of interest in that from thai buyers. So we will be coming over anyway.

If we had a bank loan on the property then the bank would be in possession of the chanote, which they are not.

We paid cash and obviously are in possesion of the chanote.Therefore i don't see why there would be a need for some sort of check on behalf of the buyer by the condo building office.

It's quite difficult atm for me to take a long period of time off work so my wife suggested she come over a week earlier so the condo office could do the 'checks'.

Im aware of maintenance fees etc, that's minor details that the condo office can tell the buyer about, or indeed us( there all paid for up to end of 2008).

I think she just wants to come over a week earlier tbh, and have a longer holiday.

[Khun Jean]

or run of with the money.

Sorry, i could not resist.

[Guest Bellini]

...I think she just wants to come over a week earlier tbh, and have a longer holiday.

I say, let her go a week early so she can have some time on her own, meet up with her buddies and gossip to her heart's delight, and prepare for your arrival.

[seasider]

...I think she just wants to come over a week earlier tbh, and have a longer holiday.

I say, let her go a week early so she can have some time on her own, meet up with her buddies and gossip to her heart's delight, and prepare for your arrival.

I honestly think that's what it is, but she thinks i might well say no, not that i'm mean or anything but we have got two children, who i, or failing that, my parents, (who are pretty elderly) would have to look after while shes got a week of gossip and partying to herself before i fly over for the boring and unimportant bit ! Such a chore spending a day or two at the land office(s).

Khun jean- Not worried about her running off with the money, we've bought and sold a property before and been together 8-9 years, lived and worked in thailand for quite a few years, have two children (i am the natural father).Been coming here since '94, so im not green behind the ears. Don't blame you for thinking that though, seen enough horror stories on here and in my day to day real life experiences so i will never discount anything!

Btw, slightly off topic but if the sale off the land goes through before i can sell the condo (it looks imminent so that will probably be the case), does anyone know if i can have the name on the condo title deed(chanote) transferred from my wifes name to either me or my children? Both my children are dual-citizens holding both thai and british passports, my daughter was born in thailand and therefore has a thai birth certificate.My daughter is also on the Tabien Baan for the condo.

[monty]

Your wife is correct, although it's not a credit check with financial institutions like we in the West would associate with that wording!

Basically, to transfer a foreign owned condominium to another foreigner, certain documents are required.

One is the proof of foreign remittance of the buyer, stating that he brought the money in from abroad to purchase the condo (this paper obviously has to be supplied by the buyer, his receiving Thai bank can provide that).

Second is a statement from the juristic, which details all units held by foreigners (so land and house can see the total is still under 49%), and which also states that no debts on maintenance fees are outstanding. This paper is needed, otherwise the Land and House department will refuse to transfer the land title deed to the new owner! It is the responsibility of the seller to supply this document!

It is probably that paper your wife refers to! It can be slightly cumbersome to get this paper, as the application needs the name and current address of the potential buyer, so you can't apply before you know who is going to buy the condo! Often it takes several days to get this paper, since in many cases the juristic is a managements company managing several condo's, not necessarily located in the condo. In most cases a fee is charged for this document as well!

[seasider]

Your wife is correct, although it's not a credit check with financial institutions like we in the West would associate with that wording!

Basically, to transfer a foreign owned condominium to another foreigner, certain documents are required.

One is the proof of foreign remittance of the buyer, stating that he brought the money in from abroad to purchase the condo (this paper obviously has to be supplied by the buyer, his receiving Thai bank can provide that).

Second is a statement from the juristic, which details all units held by foreigners (so land and house can see the total is still under 49%), and which also states that no debts on maintenance fees are outstanding. This paper is needed, otherwise the Land and House department will refuse to transfer the land title deed to the new owner! It is the responsibility of the seller to supply this document!

It is probably that paper your wife refers to! It can be slightly cumbersome to get this paper, as the application needs the name and current address of the potential buyer, so you can't apply before you know who is going to buy the condo! Often it takes several days to get this paper, since in many cases the juristic is a managements company managing several condo's, not necessarily located in the condo. In most cases a fee is charged for this document as well!

I guess she means the statement from the juristic. Does she have to be there in person to do this ?

Can it be organised beforehand from overseas using phone/fax/e-mail ?

If not, i guess she will get her extra holiday time!

[thaigene2]

Okay so we're talking about a lien search. This is common sense and carried out by the buyer's solicitor. The people buying your land will want to do the same thing. Don't know how long it takes.

In Thailand the seller seems to be more in control than the buyer (a lot of things can happen for the buyer .. some listed above like finding out there are too many foreigners over-quota, or that there;'s a lien on the propertym or that the foreigner didn;t know enough to get the FECs from the Thai bank to prove the money was all wired from abraod for 100% purchase price, etc..)

[monty]

Can it be organised beforehand from overseas using phone/fax/e-mail ?

If not, i guess she will get her extra holiday time!

Of this I am not entirely sure, but in the case when I sold condo's, the juristic required signed originals of the forms. The persons involved didn't have to be there in person, as long as the original signed paperwork and required copies of passports were there, along with somebody who pays the fee!

So I guess it's possible without going, but it will need quite a bit of DHL or FEDEX document parcels going back and forth between condo, seller and buyer until everything is signed properly!

In Thailand the seller seems to be more in control than the buyer

I wouldn't really say that, the seller has to provide a few documents (ID, and the juristic clearance), pretty much all the rest is due diligence on the side of the buyer.

I actually think this system is in the advantage of the buyer, it's reasonably easy to find out if there are loans, leases or not on the property etc, since over here everything is registered and noted on the back of the land title deeds!

[seasider]

Can it be organised beforehand from overseas using phone/fax/e-mail ?

If not, i guess she will get her extra holiday time!

Of this I am not entirely sure, but in the case when I sold condo's, the juristic required signed originals of the forms. The persons involved didn't have to be there in person, as long as the original signed paperwork and required copies of passports were there, along with somebody who pays the fee!

So I guess it's possible without going, but it will need quite a bit of DHL or FEDEX document parcels going back and forth between condo, seller and buyer until everything is signed properly!

In Thailand the seller seems to be more in control than the buyer

I wouldn't really say that, the seller has to provide a few documents (ID, and the juristic clearance), pretty much all the rest is due diligence on the side of the buyer.

I actually think this system is in the advantage of the buyer, it's reasonably easy to find out if there are loans, leases or not on the property etc, since over here everything is registered and noted on the back of the land title deeds!

Yes, she did mean the statement from the juristic and it was all done ok, did need five working days though. Khun jean- didn't run off with the money, i got that!