Borrowing Money Against A Chanote

[ruds]

I was I to lend somebody money and they were to give me the Chanote for their condo as sercuity, could they file for a replacement and sale the condo without me knowing?

Many thanks in advance

Ruds

[Cuban]

Short answer = Yes.

The Chanote could just be reported stolen and you get arrested for your trouble.

Go to a local lawyer, get a claim on the land written up (it is written on to the back of the Chanote itself) and then get that claim registered with the local land office, that is the only way to stop the rug from being pulled from under you.

It is worth getting the agreement to state in plain clear sentances what the repayment term is, who is liable for costs and who is liable for costs, damages and any benifits from the land during the time of the loan. Seems like hassle but doing this ahead of time will ensure you are not walking away from a bad loan with no land after another long drawn out con - even if it was entered into honorably by both sides. Also state the intrest rate and when replayments are due and the penalty for failure to pay them. If you are not there to enforce the payments - consider how you will instruct your lawyer to proceed with recovery. More to add but only if you are serious about the deal.

Sounds like I've been on the wrong end of a deal before - no so - just did my due dilligence before one particular offer from an extended 'family' member that I turned down due to the gapping hole in the security offered.

HTH.

[Heng]

Yes, by all means register the contract at the local Land Office. I might add make it a sell by proxy contract, not a simple 'jot jamnong' (held as collateral) contract, as the former includes an automatic transfer of ownership if the debt is not paid. Be sure to keep the interest rates legal to avoid any hassles.

[eljeque]

also you should get a letter from the condo company stating that he has paid all of his maintenance fees up to date.

This way, you would not become liable for them.

The land office has a Power of Attorney form for him to sign.

Instead, you may be able to do what is called "Kai fark"

This means Sell with the rights to buy it back

This way, it is already yours.

You--being a foreigner, can do this only for a condo in a foreigners name.

Write the loan up for more than you loan him, and refer to these extra costs as fees. This way, it will pay for your hassle now and in the future if you ever have any.

[monty]

Some good advice, especially on the sell with buy back rights.

If you register a loan and they default on paying back, you'll have to go through a lengthy legal process (several years), and even then might not see your money, nor get the property transferred to you!

[clinique]

Some good advice, especially on the sell with buy back rights.

If you register a loan and they default on paying back, you'll have to go through a lengthy legal process (several years), and even then might not see your money, nor get the property transferred to you!

Kai Fark is the safest, most secure way.

[eljeque]

Some good advice, especially on the sell with buy back rights.

If you register a loan and they default on paying back, you'll have to go through a lengthy legal process (several years), and even then might not see your money, nor get the property transferred to you!

Get Land Office powers of attorney signed first, so if he does default, you go to the land office and change everything to your name right over.

It does not take so long as above..

On a defaulted mortgage: Your lawyer sends the borrower a letter that they have broken the agreement in the contract and that they must make contact and arrangements to catch up on their payments.

The borrower does nothing, and then you notify the court. It will take about 3-4 months to get to court. Usually, the borrower will not appear and the lender will be given the right to send the property to auction. This may take 6 months until it is auctioned off.

If the borrower does appear in court, he will more tha likely beg and plead for more time, but as the borrower had not gotten a hold of the lawyer or the lending parties earlier , the court will not want to hear it.

After the auction, the auction house will then contact you or the court, I forgot, and you will pick up your judgement money.

BUT NO KIDDING, do a Kai Fark instead, if the copndo is in a Farang name. Then, there are no problems.