Selling Nor Sor Sam Title Land

[Lickey]

A friend of mine has fell in love with a piece of ground for sale on mrs family farm, Problem is, and like most of us Europeans want is an official document on the sale of the land,

The land is not offically segmented to individual family brothers and sister, but 4 years ago, mrs sister gave land document to the bank to secure a loan, unbeknown to other family members,

Mrs told friend not to worry about this, she would do paper with the village boss as witness that would garantee his right to the land, [its 1/2 rai on 36 rai ], sorry, i forgot, its nor sor sam titled,

His GF understands totally, and agrees all will be ok,

Friend wants to do a usufruct [spelling?] on the land and house build, as a security in the case of a split or divorce or something,

Sister has 3 more years to pay of loan, then the papers will be released,

Finally, the site has electricty,water, and at least 3 different access points,

Thankyou for comments and views, Cheers Lickey,,

[Thai-Aust]

'that would garantee his right to the land,'

I don't quite understand your comment above but I guess your friend expects to have his name on the title as one of the owners.

I don't beleive that he will have any right to the land although he can build a house on it, he will only own the house not the land.

[InterestedObserver]

Nothing can legally happen happen until the title papers are released by the bank. Then the land would have to be surveyed, the 1/2 rai chopped off and individual Chanote issued, and a usufruct registered at the local land office. I wouldn't plan on building a house there anytime soon. What do the other family members say about all this? I assume your friends Thai wife will own the 1/2 rai.

Edited August 2, 2010 by InterestedObserver

[katabeachbum]

Nothing can legally happen happen until the title papers are released by the bank. Then the land would have to be surveyed, the 1/2 rai chopped off and individual Chanote issued, and a usufruct registered at the local land office. I wouldn't plan on building a house there anytime soon. What do the other family members say about all this? I assume your friends Thai wife will own the 1/2 rai.

assuming its a Nor Sor 3 Gor title land, a pre purchase pre sale agreement can be entered with the registerd owner in land title. Valid 3 years by law. When title released, this part of the land can be separated to its own NS3G (3 months with some greasing) and if desired transfered to be usufructed. Buildingpermit, if required in this area, can only be issued to farang if usufruct is already registered in NS3G. I d say usufructing land and house works just as well

Risky business for farang, but doable

With such a large NS3G, I would split it in 8 NS3G, since the cost is the same as splitting out only 1/2 rai. 8 plots is the limit for local land office to approve.

Upgrading to Chanote is another issue, and I see no reason to spend money on it

[InterestedObserver]

What happens if the bank loan isn't repaid by the sister within three years, the title documents are not released by the bank, and the pre purchase/pre sale agreement expires. The potential buyer would have zero recourse and loose any monies paid toward the land purchase. Don't buy property in Thailand unless you (wife) can exchange money directly for the Chanote.

[katabeachbum]

What happens if the bank loan isn't repaid by the sister within three years, the title documents are not released by the bank, and the pre purchase/pre sale agreement expires. The potential buyer would have zero recourse and loose any monies paid toward the land purchase. Don't buy property in Thailand unless you (wife) can exchange money directly for the Chanote.

agree, thats the safe way

as I said, risky business for farang, but doable.

another aspect here would be selling 1/2 rai should bring in some money, possibly enough to pay out bank and complete a safe ownership

[Lickey]

Thankyou all for comments, most helpfull,

I conered my mrs tonight and it was like a "Hard Talk" debate as on BBC, I insisted on knowing how much SIL owed and how much she paid bank monthly, mrs said she owes 700.000bht and pays 7000bht a month, which isnt quite enough to meet a 3 year deadline, but i dont kow the exact dates!!

On the other hand, SIL has on her part of the farm, 12 rai of 6 year old rubber trees, about 1600 trees, up for sale for 1mill 950,000 bht, again, nor sor sam land, I will be a bit sad if she sells this, its at the top of the hillside farm and has brilliant views over the village and mountains,

The farm value far exceeds what is owed to the bank, having to get papers from bank and of course the greasing ect, mrs would make small money for what is rightfully her land, so she doesnt want to go down that route, I do know of a falang in the same situation, but he went ahead and built a bungalow, he should have the papers next year, if the land owner doesnt fault on his payments, but even if he did fault, what would happen?

Thanks for more comments, Lickey..

[katabeachbum]

Thankyou all for comments, most helpfull,

I conered my mrs tonight and it was like a "Hard Talk" debate as on BBC, I insisted on knowing how much SIL owed and how much she paid bank monthly, mrs said she owes 700.000bht and pays 7000bht a month, which isnt quite enough to meet a 3 year deadline, but i dont kow the exact dates!!

On the other hand, SIL has on her part of the farm, 12 rai of 6 year old rubber trees, about 1600 trees, up for sale for 1mill 950,000 bht, again, nor sor sam land, I will be a bit sad if she sells this, its at the top of the hillside farm and has brilliant views over the village and mountains,

The farm value far exceeds what is owed to the bank, having to get papers from bank and of course the greasing ect, mrs would make small money for what is rightfully her land, so she doesnt want to go down that route, I do know of a falang in the same situation, but he went ahead and built a bungalow, he should have the papers next year, if the land owner doesnt fault on his payments, but even if he did fault, what would happen?

Thanks for more comments, Lickey..

Failing to pay, bank sells land on auction to cover the loan. Including the bungalow. Before selling the land, all and everyone must leave the land, and denying doing so is jail.

[simon43]

Memo to myself - if I build a house on Thai land, make sure it's a wooden house that can be dismantled and moved to another piece of land...

Simon

[stgrhe]

Memo to myself - if I build a house on Thai land, make sure it's a wooden house that can be dismantled and moved to another piece of land...

Simon

If it is made of wood maybe the termites will do the job for you.