Question About Land Title

[xen]

Recently my gf and i looked at a nice 4 rai piece of land. We were told about the availability from friends living in the area and we were quoted an aprroximate price range which sounded acceptable. However we are walking away because of the stuffing around and price increases from the other party which indicates that are not willing to seriously negotiate.

But my question invlves something they threw at us which i would like clarification on if anybody can help.

It appears that the selling party had obtained their land from their mother approx 12 months ago. They indicated the land was for sale and were open to negotiation for the sale but then they told us that we/my gf could not get title for the land for four years as the land could not be transferred for that period - a total of five years from the time they received it from their mother.

There could be some valid reasons for this such as anti-speculation restrictions, but This is Thailand!!

My gf told them that if we were to proceed we could put the purchase moneys in a interest bearing account in a bank and not be released until we/my gf has clear title. This of course was not acceptable and they wanted the cash on the barrelhead, so we are walking away and this of land will be for sale until somebody accepts their terms.

So out of curiosity, can somebody clarify this situation about title not being able to be transfered for this period or was it another scam? (and yes i know their are restrictions on falung land ownership in LOS.)

Thanks in advance for any info,

[InterestedObserver]

There are instances where the Thai authorities place restrictions on the transfer of land titles for a certain period of time to prevent speculators from profiteering. I believe it involves recently upgraded land titles, but I could be wrong on that point. If you absolutely have to buy this piece of land, then you can make a deal with the land owner and land office; get GF name placed on the back of the Chanote, similar to a mortgage, thus blocking sale to anybody else, but you'll have to wait to get title to the land.

Edited September 27, 2009 by InterestedObserver

[seaeagle]

Recently my gf and i looked at a nice 4 rai piece of land. We were told about the availability from friends living in the area and we were quoted an aprroximate price range which sounded acceptable. However we are walking away because of the stuffing around and price increases from the other party which indicates that are not willing to seriously negotiate.

But my question invlves something they threw at us which i would like clarification on if anybody can help.

It appears that the selling party had obtained their land from their mother approx 12 months ago. They indicated the land was for sale and were open to negotiation for the sale but then they told us that we/my gf could not get title for the land for four years as the land could not be transferred for that period - a total of five years from the time they received it from their mother.

There could be some valid reasons for this such as anti-speculation restrictions, but This is Thailand!!

My gf told them that if we were to proceed we could put the purchase moneys in a interest bearing account in a bank and not be released until we/my gf has clear title. This of course was not acceptable and they wanted the cash on the barrelhead, so we are walking away and this of land will be for sale until somebody accepts their terms.

So out of curiosity, can somebody clarify this situation about title not being able to be transfered for this period or was it another scam? (and yes i know their are restrictions on falung land ownership in LOS.)

Thanks in advance for any info,

There is also a set period (and I can't remember how long it is) whereby if land is sold, say within 5 years, the Land Office will view it as a business deal, and charge a higher rate of business / transfer tax when the land is traded.

If sold after, say a 5 year period, then they view it as a normal transaction. Ie, if you were trying to make a quick buck out of a land deal, you would have turned it over in a shorter period.

Here, the sellers may just be trying to avoid paying more tax on the sale by postponing it until after this set period.

In that case, sit tight - don't enter into any agreement until they want to close the deal.

[xen]

Thanks for that info,

At least i know it is not a scam but i must admitt i don't like paying for land that clear title cannot be claimed.

I will wait to hear from them to see if they are interested in selling or just playing games.