Leasing Contract 30 Years And Loaning To A Bank...

[greg113]

Hello,

I want to buy a land, put it on my thai gf name and do a leasing contract with her 30 years but in other side she wants to pay half with me by loaning to a bank, what happen if she can’t pay back the loan and interest to the bank ? Do i loose the lease contract and the land ? The bank can take the land even if i have a leasing contract ? What can i do to protect myself ? Thanks you so much !

[InterestedObserver]

It is unlikely that a Thai bank would mortgage land with a 30 year lease registered on the Chanote title deed. You could only lease land that is 100% owned by your Thai girlfriend.

Edited February 8, 2011 by InterestedObserver

[katabeachbum]

It is unlikely that a Thai bank would mortgage land with a 30 year lease registered on the Chanote title deed. You could only lease land that is 100% owned by your Thai girlfriend.

yepp, banks require a clear title to register their loan and they keep the title until loan repayed, so no security for you

[trogers]

Which bank will give mortgage on a property that is tied down with a long term lease such that the bank cannot foreclose and auction it off in the event the debtor defaults on payments?

[olsen]

Anyway you cannot lease land from someone you are married to or live together with in a relationship!

[InterestedObserver]

Anyway you cannot lease land from someone you are married to or live together with in a relationship!

How about citing a source for that. Some land offices interpret things that way, but I don't believe Thai law supports that position. Contracts between spouses require extra careful preparation, but it can and has be done.

[olsen]

It happened twice for me as a broker in Nakhon Si Thammarat. Wife bought the land and wanted to lease it out for her husband. This was rejected by the land office.

So I just mention this from experience.

Other land offices can interpret the law differently I guess.