Buying Property In The Name Of A Minor/Child

[chiangmaibruce]

I was reading an article the other day concerning the pros and cons of buying a property in the name of a child in Australia. Refer http://discover.realestate.com.au/buying/property-childs-play-how-kids-can-own-homes

It raised an issue that I haven't read about occurring in Thailand. In Australia a contract can't be enforced against a minor. If a child was party to a contract in relation to (say) the purchase of a condo, and subsequently did not pay, then I gather no action could be taken to penalise them. As a result (the article stated) many vendors will not agree to a sale where the buyer is a minor. I guess that would mean that a parent would have to buy the property (pay stamp duty) then transfer to the child (and pay stamp duty again - depending on state laws).

Does anyone have experience of property vendors in Thailand refusing to enter into a contract of sale with a minor? Or (in Thailand) when parents buy property for a child do they sign the contract as guardian (if so, does this require court approval?) and thus they are held liable for non-performance? Most of the issues that occur when people go down this path in Thailand, seem to rise up later - mainly when trying to register the title change at the Land Dept

Could anyone who has been involved in a property puchase for a child please advise ... thanks

[yoshiwara]

A child cannot buy or sell a property. However, a child's legal interests can be represented through for example a trust.

[chiangmaibruce]

Yes, one would have thought that legally a child could not enter into a contract, but a trust isn't an option in Thailand.

So when people (in Thaivisa for example) say there are "buying land in the name of their child", how exactly do they do it? The options would seem to be:

1.Contract in the name of the child's parent/guardian and signed by that person, and the land is initially registered in the name of that person. Immediately then the property is gifted and transferred into name of the child (with presumably a second tax payment on transfer)

2. Contract in the name of the child's parent/guardian and signed by that person, but upon transfer from the previous owner the land is placed immediately into the name of the child

3. Contact is in the name of the child and the child seals the contract with a mark, or the contract is signed on behalf of the child by a guardian. Property registered in the name of the child and only one transfer tax payable.

So who has actually been through this process, and how did you do it?

[TommoPhysicist]

You pay cash, full amount, then put the kids name and ID number on the Chanote.

Both parents sign the chanote on behalf of the child.

One parent is nominated as head of the household, this can be a foreigner, but doesn't have any right to sell.

At most land offices it isn't a problem. It can't be sold until the kid is 20.

(without a court order, that just won't be given)

Trying to buy something that doesn't exist may be different.0

I've always suspected that those land offices that refuse, are actually covering for the Thai parent that refused consent (that parent thinking they will get the property in their name), but I may be totally wrong there.

Edited June 3, 2012 by TommoPhysicist

[Mario2008]

Per above, you pay the ful amount when buying. It might be with a loan, but not with the land from the minor as a guarantee.

Land belongs to the minor, with no strings atached. (Unless maybe as part of the gift of the land, you give a childland with a usefruct already on it). Selling or renting land that belongs to a minor needs prior court aproval, which one must show at the land office.

[chiangmaibruce]

OK, so based on feedback so far ... in Thailand you get around the contract issue because there isn't one ... just a handing over of cash at the time of title transfer. This would not work with, for example, buying a condo off-the-plan, but then I guess relatively few people would want to/need to buy a condo in the name of a minor.

Edited June 3, 2012 by chiangmaibruce

[harrry]

A child cannot buy or sell a property. However, a child's legal interests can be represented through for example a trust.

Trusts are not legal in Thailand.