Buying Land With Chanote Currently In Bank. What Is My Guarantee?

[vincentc]

Hi,

About to buy a plot of land worth roughly 700k THB. Daughter of the owner has a loan (that she fails to pay back) with the bank of about 180k and for which the Chanote 'is in the bank'.

After talking to daughter and the bank, they want us to pay the debt amount at the bank first. Then it takes the bank a week to 'release' the Chanote after which we can go to the land department to transfer the ownership.

I wonder what guarantee we have when we pay down the 180k. I think nothing stops them from taking the 180k and then calling off the deal.

I discussed this with the bank manager, but he was too novice/untrained/unskilled to come up with a proper suggestion, hence my question to the Thaivisa community.

Did a land deal last year, which was worth much more and there the bank manager came with us to the land department and all was settled over there among the 3 parties involved (buyer, seller, bank).

Not sure if it is the lower amount that is the reason why the bank manager does not want to join the land department meeting or if the situation is slightly different.

Thanks for your advice!

[InterestedObserver]

Did a land deal last year, which was worth much more and there the bank manager came with us to the land department and all was settled over there among the 3 parties involved (buyer, seller, bank).

YES, that's what you do.

[Tanaka]

Agree with IO. There is no reason why it should take the bank a week to give back the chanot. Your problem would be that the owner then would have a debt free chanot and if they refuse to go to the Land Office to clear the sale, you have been had.

[silsburyhill]

Bit off topic, but doesn't any lender have to have his/her debt registered on the Chanote at the Land Office? That is to say, if one owed money to another party, whether it be a bank or accountant etc, would this debt NOT be enforceable if unregistered? Morally, yes. But, legally?

[eljeque]

The land owner and bank need to go to the land office in order to clear the registered mortgage which has a notation placed on the back of the chinote.

I may be paranoid, but if you paid the bank for her debt, she and the bank could simply go to the land office and then clear her debt.

If you are able to arrange for her and the bank to meet you at the land office and clear the loan and make the sale all in one, then move forward. If not, then look elsewhere.

As other posters have already said, this is the ONLY way it is done.

Listen to no explanations. Walk away if this is not the way they want to do it.

[steve187]

Do it your way or no way.