Purchase Deposit

[petercr]

I'm interested in advice regarding payment of a deposit when purchasing property.

I have recently had an offer accepted on a house purchase and had intended this to go through quickly in my Thai wife's sole name. The vendor has consulted a lawyer and has advised that we need to give the land office in Hua Hin 30days notice (See my earlier post) and as a result of this 30day delay the vendor is asking for 10% deposit (800k). I have stated that I woudl accept that condition subject to the deposit being held in escrow and a similar deposit being made by the vendor against their not proceeding with the sale. There are no agents involved

The vendor says no to paying a depsoit and still insist that I should as this is the norm.......They also say there is no escrow arrangement available in Thailand.

I am aware that agents usually ask for a deposit and start at a suggested 10% but for most people this is negotiated down to a more reasonable level. In my view it is unreasonable to risk the 10% deposit without clear protection (escrow) as so far as I'm concerned possession is everything and trying to reclaim a substantial deposit, irrespective of the contract in place, is very difficult in LOS

Am I being unreasonable???

[thaiwanderer]

Escrow is available.

I think its reasonable but its your deal and your choice whether to accept, negotiate different terms or walk away.

[dave111223]

In all property purchases i've made in Thailand 10-20K was enough for a deposit.

IMHO tell them where to stick the 800K; no doubt if he thinks you're a sucker now he'll likely try to milk you a bit more for taxes/fees on the day of the transfer at the land dept.

[silentnine]

having sold my own house here a few years ago i insisted on a 10% deposit from the buyer. 350k

my 1st interested party i accpeted a 20k deposit .. he then peeded me around for 7 weeks in the end saying he could not raise the balance

my 2nd party paid 100k deposit then after another 3 monhts confesed they could not get the mortgage arranged.

so 5 months lost ..

the 3rd and final buyer paid there deposit of 350k and happily paid the balance after 2 weeks.

so ask yourself.. if you had a house for sale for say 5million bt.. and someone offered you 20k to take it off the market .. would you ..

the larger deposit assure the seller you really are a buyer not a shopper

of course you could pay them 20k .. but if they have any sense they will continue to market the property so you could just give your 20k back if someone comes along with cash.

or even worse the vendor could end up muddled up with several people offereing deposits .

one option you could consider is go to an agent and ask them to handle the purcase for a minimal fee. then you can pay the agent..

the deposit is still non renfandable .. and the deposit will be immedialtey paid to the vendor less the agents commision .

but at least yo uwill have recourse as a contract will be there and enforcable. i know many agents who would do this for 0.5% - 1% and be happy as they do not have to do any sales just manage the sale

much depends on how long your telling them the balance for completion will be .. if your asking them to hold the house for a few days for 20k then its not unreasonable to allow you that time.. if your asking for weeks then perhapsyou need to look at it from there point also ..

are they farangs sellign to downsie to get some cash ? many people are runnign out of $ with the bad economy so they are looking for a life line . maybee offer them 20k per week while you sort out your finances..

edit..

just re read your post and it looks like its 30 days .. if you have to notify the land office that your buying and there selling and your only paying 20k deposit i guess they could be concerend its a lot of runnng around and waht would happen if you changed your mind with only 20k at stake.

offer to pay all the land ofice fees yourself in advance ..and 20k per week while you wait would be my best suggestion ... then there not out of pocket and your constnatly in touch with then alaying there fears of you pulling out.. or go the agent path i suggested as they may be able to get round the 30 day rule with a back hander

Edited May 13, 2011 by silentnine

[stgrhe]

In any fair business arrangements the golden rule is that one should not pay something for nothing. In this case I mean you gain nothing from the 30 day delay as it is outside of your control, so in my world no deposit should be paid. I mean also, in Hua Hin it is really the buyer's market, as there are so many homes and developments for sale, so it if was me I would simply tell the seller that either he accepts the situation and wait for the 30 days to pass or the deal is off.

[petercr]

having sold my own house here a few years ago i insisted on a 10% deposit from the buyer. 350k

my 1st interested party i accpeted a 20k deposit .. he then peeded me around for 7 weeks in the end saying he could not raise the balance

my 2nd party paid 100k deposit then after another 3 monhts confesed they could not get the mortgage arranged.

so 5 months lost ..

the 3rd and final buyer paid there deposit of 350k and happily paid the balance after 2 weeks.

so ask yourself.. if you had a house for sale for say 5million bt.. and someone offered you 20k to take it off the market .. would you ..

the larger deposit assure the seller you really are a buyer not a shopper

of course you could pay them 20k .. but if they have any sense they will continue to market the property so you could just give your 20k back if someone comes along with cash.

or even worse the vendor could end up muddled up with several people offereing deposits .

one option you could consider is go to an agent and ask them to handle the purcase for a minimal fee. then you can pay the agent..

the deposit is still non renfandable .. and the deposit will be immedialtey paid to the vendor less the agents commision .

but at least yo uwill have recourse as a contract will be there and enforcable. i know many agents who would do this for 0.5% - 1% and be happy as they do not have to do any sales just manage the sale

much depends on how long your telling them the balance for completion will be .. if your asking them to hold the house for a few days for 20k then its not unreasonable to allow you that time.. if your asking for weeks then perhapsyou need to look at it from there point also ..

are they farangs sellign to downsie to get some cash ? many people are runnign out of $ with the bad economy so they are looking for a life line . maybee offer them 20k per week while you sort out your finances..

edit..

just re read your post and it looks like its 30 days .. if you have to notify the land office that your buying and there selling and your only paying 20k deposit i guess they could be concerend its a lot of runnng around and waht would happen if you changed your mind with only 20k at stake.

offer to pay all the land ofice fees yourself in advance ..and 20k per week while you wait would be my best suggestion ... then there not out of pocket and your constnatly in touch with then alaying there fears of you pulling out.. or go the agent path i suggested as they may be able to get round the 30 day rule with a back hander

I note your comments about the purchaser pulling out of a deal and can understand your concerns. However in this case it is a situation that's beyond my control (and the vendor's) where the land office requires a 30day notice period, however the vendor is using this situation to argue for 10% deposit. I could complete the deal in 24hrs given a free hand and would also be happy to lodge a smaller sum that reflected any potential costs to the vendor if we withdraw from the purchase at the last moment.........That's reasonable

Using an agent seems to me to be a waste of time and money, contract or whatever agreement, it still comes down to enforcing the agreement for a return of my deposit if it all goes wrong. I also question why only the purchaser should demonstrate a financial committment when IMO it is equally relavant (and fair) that the vendor should be locked into the deal. As one other member has commented, why pay/risk a substantial sum of cash for nothing.

Anyway, given the vendor's choice of pay 10% or they will withdraw from the deal I informed them taht the deal is off

[thaiwanderer]

Anyway, given the vendor's choice of pay 10% or they will withdraw from the deal I informed them taht the deal is off

Deposit worked then. Wheat from chaffe.

[katabeachbum]

having sold my own house here a few years ago i insisted on a 10% deposit from the buyer. 350k

my 1st interested party i accpeted a 20k deposit .. he then peeded me around for 7 weeks in the end saying he could not raise the balance

my 2nd party paid 100k deposit then after another 3 monhts confesed they could not get the mortgage arranged.

so 5 months lost ..

the 3rd and final buyer paid there deposit of 350k and happily paid the balance after 2 weeks.

so ask yourself.. if you had a house for sale for say 5million bt.. and someone offered you 20k to take it off the market .. would you ..

the larger deposit assure the seller you really are a buyer not a shopper

of course you could pay them 20k .. but if they have any sense they will continue to market the property so you could just give your 20k back if someone comes along with cash.

or even worse the vendor could end up muddled up with several people offereing deposits .

one option you could consider is go to an agent and ask them to handle the purcase for a minimal fee. then you can pay the agent..

the deposit is still non renfandable .. and the deposit will be immedialtey paid to the vendor less the agents commision .

but at least yo uwill have recourse as a contract will be there and enforcable. i know many agents who would do this for 0.5% - 1% and be happy as they do not have to do any sales just manage the sale

much depends on how long your telling them the balance for completion will be .. if your asking them to hold the house for a few days for 20k then its not unreasonable to allow you that time.. if your asking for weeks then perhapsyou need to look at it from there point also ..

are they farangs sellign to downsie to get some cash ? many people are runnign out of $ with the bad economy so they are looking for a life line . maybee offer them 20k per week while you sort out your finances..

edit..

just re read your post and it looks like its 30 days .. if you have to notify the land office that your buying and there selling and your only paying 20k deposit i guess they could be concerend its a lot of runnng around and waht would happen if you changed your mind with only 20k at stake.

offer to pay all the land ofice fees yourself in advance ..and 20k per week while you wait would be my best suggestion ... then there not out of pocket and your constnatly in touch with then alaying there fears of you pulling out.. or go the agent path i suggested as they may be able to get round the 30 day rule with a back hander

I note your comments about the purchaser pulling out of a deal and can understand your concerns. However in this case it is a situation that's beyond my control (and the vendor's) where the land office requires a 30day notice period, however the vendor is using this situation to argue for 10% deposit. I could complete the deal in 24hrs given a free hand and would also be happy to lodge a smaller sum that reflected any potential costs to the vendor if we withdraw from the purchase at the last moment.........That's reasonable

Using an agent seems to me to be a waste of time and money, contract or whatever agreement, it still comes down to enforcing the agreement for a return of my deposit if it all goes wrong. I also question why only the purchaser should demonstrate a financial committment when IMO it is equally relavant (and fair) that the vendor should be locked into the deal. As one other member has commented, why pay/risk a substantial sum of cash for nothing.

Anyway, given the vendor's choice of pay 10% or they will withdraw from the deal I informed them taht the deal is off

There is one more solution

In every Muang there is a government office where you can deposit a cashier check on the agreed purchase amount. Check released to seller when transfer completed. Safe for both.

[dave111223]

having sold my own house here a few years ago i insisted on a 10% deposit from the buyer. 350k

my 1st interested party i accpeted a 20k deposit .. he then peeded me around for 7 weeks in the end saying he could not raise the balance

my 2nd party paid 100k deposit then after another 3 monhts confesed they could not get the mortgage arranged.

so 5 months lost ..

the 3rd and final buyer paid there deposit of 350k and happily paid the balance after 2 weeks.

You seem to have agreed strange terms with regards to the deposit; normally in sales i've been involved with the deposit buys you a month (maybe 6 weeks) to complete the sale or the deposit is gone.

Why would you agree to hold the property for 3 months, or 7 weeks etc...? Maybe you're problem is not the amount of the deposit, but the amount time you are giving people with the deposit.

I can understand your case of getting messed around, especially if marketing the property at considerable expense; however i feel that your scenario differs from most property sales in Thailand.

Thais "Marketing" their property in Thailand most of the time consists of putting a hand drawn phone number of the front door (or maybe no sign at all!) If the seller is really with it they may even have posted a message somewhere on an obscure forum with 100x100 pixel image.

Property is not "taken off the market" after the deposit is received; you can pretty much guarantee that if a better offer comes in you'll get the deposit bunged back to you (no matter how much it was) with some lame excuse about their grandmother dying and the property no longer being for sale.

20K is a considerable amount of money considering that for that money they person maybe has spent a couple of days of their time (ie 1 day to show you the property and another to meet you and agree on terms/sign contract)

[Khun Jean]

Well sometimes you just have to use your judgement and take a risk.

I just paid a 10% deposit for a 2Mb land sale and all i got is someone who i know his word and a piece of paper that is called a contract.

Until now "knock on wood" never had a problem.

However 800k is an amount that is too large to risk in my opinion. Wait the 30 days and buy it with at least 10% discount because you can pay cash and as mentioned before it is a buyers market.

[Lannatyne]

Why has no one suggested getting a purchase & sale contract drawn up to reflect terms? You can even include a clause to cover this Hua Hin 30-day thing.

Amongst various standard purchase / sale clasues, insert something like this taken from a previous deal I did:

Clause 3.

The Buyer agrees to complete performance of the payment in cleared funds of the sales price (less deposit already paid) prior to, or on the day, the transfer of the ownership rights to the land is registered. Payment is to be made in Thai baht cleared funds to a bank and account nominated by the Seller.

Clause 4.

The Seller agrees to register the transfer of the land according to Clause 1. free of any encumbrance (save for Clause 8) at the Land Registration Office XX to the Buyer, upon receipt of agreed price in cleared funds by Xth, month, 2011.

Get a lawyer to help you do this, then you'll have a legal contract in Thailand which the seller can't get out of. It ties you in, but it would allow you to sue for the property if the seller didn't deliver by the agreed date. If HH are asking for 30 days for some reason, then put the completion date as something like 6 weeks after you pay deposit - a couple of weeks margin for error, in other words. Simple as that.

[Khun Jean]

double post.

Edited May 13, 2011 by Khun Jean

[personchester]

Why has no one suggested getting a purchase & sale contract drawn up to reflect terms? You can even include a clause to cover this Hua Hin 30-day thing.

Amongst various standard purchase / sale clasues, insert something like this taken from a previous deal I did:

Clause 3.

The Buyer agrees to complete performance of the payment in cleared funds of the sales price (less deposit already paid) prior to, or on the day, the transfer of the ownership rights to the land is registered. Payment is to be made in Thai baht cleared funds to a bank and account nominated by the Seller.

Clause 4.

The Seller agrees to register the transfer of the land according to Clause 1. free of any encumbrance (save for Clause 8) at the Land Registration Office XX to the Buyer, upon receipt of agreed price in cleared funds by Xth, month, 2011.

Get a lawyer to help you do this, then you'll have a legal contract in Thailand which the seller can't get out of. It ties you in, but it would allow you to sue for the property if the seller didn't deliver by the agreed date. If HH are asking for 30 days for some reason, then put the completion date as something like 6 weeks after you pay deposit - a couple of weeks margin for error, in other words. Simple as that.

I have purchased property several times, and have never done any of the above suggestions, when we agreed the purchase we did a simple letter of agreement /contract, then we went to the land-office, the seller presented his "property-deeds" together with the joint letter-contract containing the selling price, the land office gave the tax payment details (which is shared 50/50 between buyer & seller), and then gave us the date to come again to complete the deal.

On that date I would provide two "bankers drafts" one for the total selling price, and the other for my share of the tax payment, then the deal was officially completed, all very simple really.

[katabeachbum]

having sold my own house here a few years ago i insisted on a 10% deposit from the buyer. 350k

my 1st interested party i accpeted a 20k deposit .. he then peeded me around for 7 weeks in the end saying he could not raise the balance

my 2nd party paid 100k deposit then after another 3 monhts confesed they could not get the mortgage arranged.

so 5 months lost ..

the 3rd and final buyer paid there deposit of 350k and happily paid the balance after 2 weeks.

You seem to have agreed strange terms with regards to the deposit; normally in sales i've been involved with the deposit buys you a month (maybe 6 weeks) to complete the sale or the deposit is gone.

Why would you agree to hold the property for 3 months, or 7 weeks etc...? Maybe you're problem is not the amount of the deposit, but the amount time you are giving people with the deposit.

I can understand your case of getting messed around, especially if marketing the property at considerable expense; however i feel that your scenario differs from most property sales in Thailand.

Thais "Marketing" their property in Thailand most of the time consists of putting a hand drawn phone number of the front door (or maybe no sign at all!) If the seller is really with it they may even have posted a message somewhere on an obscure forum with 100x100 pixel image.

Property is not "taken off the market" after the deposit is received; you can pretty much guarantee that if a better offer comes in you'll get the deposit bunged back to you (no matter how much it was) with some lame excuse about their grandmother dying and the property no longer being for sale.

20K is a considerable amount of money considering that for that money they person maybe has spent a couple of days of their time (ie 1 day to show you the property and another to meet you and agree on terms/sign contract)

90 days is rather normal, as it is how long it takes banks to process a loan application if it is not in a new development approved by banks headoffice

[dave111223]

90 days is rather normal, as it is how long it takes banks to process a loan application if it is not in a new development approved by banks headoffice

i've had loans approved by 2 banks in 30 days for second hand properties, no banks that i went to said it would take 90 days.

(I have some banks reject the loan also, but they were all rejected within a few weeks)

Example Bangkok Bank 14 days:

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Loans/Home%20Loans/How%20to%20Apply/Pages/How%20we%20process.aspx

Which bank are you referring to that takes 90days?

Edited May 14, 2011 by dave111223

[thaiwanderer]

Why has no one suggested getting a purchase & sale contract drawn up to reflect terms? You can even include a clause to cover this Hua Hin 30-day thing.

Amongst various standard purchase / sale clasues, insert something like this taken from a previous deal I did:

Clause 3.

The Buyer agrees to complete performance of the payment in cleared funds of the sales price (less deposit already paid) prior to, or on the day, the transfer of the ownership rights to the land is registered. Payment is to be made in Thai baht cleared funds to a bank and account nominated by the Seller.

Clause 4.

The Seller agrees to register the transfer of the land according to Clause 1. free of any encumbrance (save for Clause 8) at the Land Registration Office XX to the Buyer, upon receipt of agreed price in cleared funds by Xth, month, 2011.

Get a lawyer to help you do this, then you'll have a legal contract in Thailand which the seller can't get out of. It ties you in, but it would allow you to sue for the property if the seller didn't deliver by the agreed date. If HH are asking for 30 days for some reason, then put the completion date as something like 6 weeks after you pay deposit - a couple of weeks margin for error, in other words. Simple as that.

Gateway to litigation only.

[thaiwanderer]

I have purchased property several times, and have never done any of the above suggestions, when we agreed the purchase we did a simple letter of agreement /contract, then we went to the land-office, the seller presented his "property-deeds" together with the joint letter-contract containing the selling price, the land office gave the tax payment details (which is shared 50/50 between buyer & seller), and then gave us the date to come again to complete the deal.

On that date I would provide two "bankers drafts" one for the total selling price, and the other for my share of the tax payment, then the deal was officially completed, all very simple really.

Both parties wished to do the deal there.

[Nawtier]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

[thaiwanderer]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

A bit contradictory.

(and why use a bare contract rather than escrow?)

Edited May 14, 2011 by thaiwanderer

[katabeachbum]

90 days is rather normal, as it is how long it takes banks to process a loan application if it is not in a new development approved by banks headoffice

i've had loans approved by 2 banks in 30 days for second hand properties, no banks that i went to said it would take 90 days.

(I have some banks reject the loan also, but they were all rejected within a few weeks)

Example Bangkok Bank 14 days:

http://www.bangkokba...%20process.aspx

Which bank are you referring to that takes 90days?

In Phuket and Hua Hin I have sold properties to buyers lending money in SCB, Kasikorn and Ayudhya. All requiered 70-90 days.

[personchester]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

For vendors to pay a penalty (double the amount of the paid deposit) if the pull out of the deal for whatever reason, is part of a silly little contract and should be crossed out before you (as vendor signs it) when I sell property and I noted that condition I erased it, otherwise no deal, on one occasion a keen buyer (Thai) insisted on giving a deposit to secure the sale, the deposit he offered was 20 K. with such a small deposit I did not bother to erase the penalty section, but with those massive deposits as outlined in the postings here, the deposit penalty section (should they exists) must be erased.

A deposit from a potential buyer gives him a purchase priority, nothing more, thus the property is still open for sale with all the usual for sale signs and adverts in full view activity, thus a vendor can not accept this silly penalty section.

[petermueller]

Escrow is available.

I think its reasonable but its your deal and your choice whether to accept, negotiate different terms or walk away.

can somebody explain ESXROW what it is

thanks

[Nawtier]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

For vendors to pay a penalty (double the amount of the paid deposit) if the pull out of the deal for whatever reason, is part of a silly little contract and should be crossed out before you (as vendor signs it) when I sell property and I noted that condition I erased it, otherwise no deal, on one occasion a keen buyer (Thai) insisted on giving a deposit to secure the sale, the deposit he offered was 20 K. with such a small deposit I did not bother to erase the penalty section, but with those massive deposits as outlined in the postings here, the deposit penalty section (should they exists) must be erased.

A deposit from a potential buyer gives him a purchase priority, nothing more, thus the property is still open for sale with all the usual for sale signs and adverts in full view activity, thus a vendor can not accept this silly penalty section.

So you were honest John from honest johns car yard hey ??

I would never buy a property from you that is for sure.

[trogers]

Seems no one has answered this issue with respect to contract law.

The property owner and the buyer both willingly enters into a sales and purchase contract. If either party breaks the contract, the other party can seek remedy in a civil court. The consideration from each party that forms the contract is the said property from the seller, and the 10% down payment from the buyer.

Thus, what is this problem about 10% being an unreasonable amount as consideration from the buyer?

If you are referring to a booking fee to reserve the property so that a buyer has a couple of weeks to consider if he wants to enter into a sales and purchase contract, then the amount is up to both parties to agree upon.

[PattayaParent]

Escrow is available.

I think its reasonable but its your deal and your choice whether to accept, negotiate different terms or walk away.

can somebody explain ESXROW what it is

thanks

http://dictionary.reference.com/

for anything else there's Google,

[dave111223]

In Phuket and Hua Hin I have sold properties to buyers lending money in SCB, Kasikorn and Ayudhya. All requiered 70-90 days.

Kasikorn: http://www.kasikornbank.com/EN/Personal/Loans/KHomeLoan/Pages/KHomeLoanKasikorn.aspx

Loan Turnaround Time

Around 7 business days for Loan Turnaround Time in case all completed documents are submitted to the bank

I can attest to this as i've had a mortgage application denied by them it only took 1-2 weeks before i heard the result.

SCB and Ayudhya don't seem to publish their processing times on their websites. But i applied for loan at Ayudhya and inquiry on loan at SCB, neither had a 70-90 day processing time.

Seems to me like the buyers were giving you a nice little story about loan times in order to get you to sign a longer period contract.

[personchester]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

For vendors to pay a penalty (double the amount of the paid deposit) if the pull out of the deal for whatever reason, is part of a silly little contract and should be crossed out before you (as vendor signs it) when I sell property and I noted that condition I erased it, otherwise no deal, on one occasion a keen buyer (Thai) insisted on giving a deposit to secure the sale, the deposit he offered was 20 K. with such a small deposit I did not bother to erase the penalty section, but with those massive deposits as outlined in the postings here, the deposit penalty section (should they exists) must be erased.

A deposit from a potential buyer gives him a purchase priority, nothing more, thus the property is still open for sale with all the usual for sale signs and adverts in full view activity, thus a vendor can not accept this silly penalty section.

So you were honest John from honest johns car yard hey ??

I would never buy a property from you that is for sure.

Your last posting is indicative of the fact that you are not a businessman, otherwise your commercial views on this matter would have come from a different mental strata, but, never mind ... you view is your view, and you are entitled to it.

[katabeachbum]

Pay 100k and enter a contract where if you pull out of the deal....you loose the 100k....if they pull out of the deal they must refund the 100k plus the same amount as a penalty....so 200k in total...

Is incentive for them not to pull out.

800k way to much.

I have paid 5% at most.......another time only 50k on a 4mil deal.

For vendors to pay a penalty (double the amount of the paid deposit) if the pull out of the deal for whatever reason, is part of a silly little contract and should be crossed out before you (as vendor signs it) when I sell property and I noted that condition I erased it, otherwise no deal, on one occasion a keen buyer (Thai) insisted on giving a deposit to secure the sale, the deposit he offered was 20 K. with such a small deposit I did not bother to erase the penalty section, but with those massive deposits as outlined in the postings here, the deposit penalty section (should they exists) must be erased.

A deposit from a potential buyer gives him a purchase priority, nothing more, thus the property is still open for sale with all the usual for sale signs and adverts in full view activity, thus a vendor can not accept this silly penalty section.

So you were honest John from honest johns car yard hey ??

I would never buy a property from you that is for sure.

Your last posting is indicative of the fact that you are not a businessman, otherwise your commercial views on this matter would have come from a different mental strata, but, never mind ... you view is your view, and you are entitled to it.

well I have to agree

making a pre purchase/pre sale agreement and paying a deposit I would want to be sure seller will allow me to complete the purchase, thus want seller to refund double deposits if he choose to cansell

[katabeachbum]

In Phuket and Hua Hin I have sold properties to buyers lending money in SCB, Kasikorn and Ayudhya. All requiered 70-90 days.

Kasikorn: http://www.kasikornb...anKasikorn.aspx

Loan Turnaround Time

Around 7 business days for Loan Turnaround Time in case all completed documents are submitted to the bank

I can attest to this as i've had a mortgage application denied by them it only took 1-2 weeks before i heard the result.

SCB and Ayudhya don't seem to publish their processing times on their websites. But i applied for loan at Ayudhya and inquiry on loan at SCB, neither had a 70-90 day processing time.

Seems to me like the buyers were giving you a nice little story about loan times in order to get you to sign a longer period contract.

longer period pre sale/ pre purchase agreement means higher deposit required, so i dont mind. Made good earnings on deposits only

Thinking of it, Kasikorn Phuket didnt manage in 90 days. Spendt 80 days to send someone to valuate property. So pre buyer had to increase deposit to get another month

as said single properties, not central approved projects.

on the other hand I have seen SCB pay out in land office for project property 3 days after initial contact

What they brag about in websites doesnt really match what happens in the provinces

[thewhites1212]

The seller is not unreasonable asking for a reservation contract deposit, 10% is not standard , 3-5% is standard via most developments or home owners. This usualy secures the sale period of having the final contract drawn up or transfer via land office.

Once the seller recieves this payment he should take the home off the market . If for any reason you pull out of the sale , most cases you will lose the reservation deposit. In the reservation contract the owner usually stipulates a reasonable timescale for the finalised contract to be drawn , which in most cases is 4-6 weeks.

Escrow accounts are expensive and its down to the buyer in most circumstances to safeguard his depoit via a legal reservation contract which is agreed by both parties.