Selling My House Over 10 Years With Me Giving The Mortgage

[duffel54321]

This sounds like a good deal but I am worried about what happens if the buyer misses payments or worse again stops paying at all that I will get caught up in a lot of legal disputes and bribe paying etc etc, if a contract is signed by both parties, is it a legal and binding document regardless of the conditions that we both signed or is it a case of who you know, any advice or experience would be great

Cheers

[Khun Jean]

I would change it into a rent and first buy option.

That way you can get rent, and when you find a buyer the tenant has first rights to buy it and if they can't or don't want you are free to sell it, maybe with a 3-6 months notice.

Another way is rent and guaranteed option to buy. You make a contract with rental payments and when at least 3 monthly payments are not paid the rental contract is cancelled.

After x years of rent the tenant can buy for a small amount.

All rent paid is yours and for the tenant it is a great motivator to keep payments on time and finish the complete term.

Edited March 15, 2012 by Khun Jean

[mrbojangles]

You would have to make sure the contract is solid but the fact you would be getting 25% deposit should be a big enough incentive for the buyer to carry on with the payments. Just like any bank would do, if they default on the payments, you grab it back.

[lannarebirth]

Here's the problem with the whole deal. You need an escrow. Not just for your protection but more importantly for the buyers. How would a buyer feel after making 10 years of payments only to find out the seller just got a fresh loan against the property at the bank? I assume you're not going to surrender the Chanote till its paid in full, right?

[Khun Jean]

double post..

Edited March 15, 2012 by Khun Jean

[Khun Jean]

Here's the problem with the whole deal. You need an escrow. Not just for your protection but more importantly for the buyers. How would a buyer feel after making 10 years of payments only to find out the seller just got a fresh loan against the property at the bank? I assume you're not going to surrender the Chanote till its paid in full, right?

A contract longer than 3 years has to be registered. It will be noted on the chanote.

Include clauses to protect both sellers and buyers rights.

No escrow needed.

[lannarebirth]

Here's the problem with the whole deal. You need an escrow. Not just for your protection but more importantly for the buyers. How would a buyer feel after making 10 years of payments only to find out the seller just got a fresh loan against the property at the bank? I assume you're not going to surrender the Chanote till its paid in full, right?

A contract longer than 3 years has to be registered. It will be noted on the chanote.

Include clauses to protect both sellers and buyers rights.

No escrow needed.

Unhuh, and when you're dead in 10 years who's going to execute? Even if you're not, and you want to mess with the guy, how many years will he have to spend in court?

I actually had someone who wanted to buy some land from me on a RE Contract. I was in favor of it because it was sure stream of local currency. Then I got to wondering why you never see any sales done in that manner here. Then it came to me, no escrow to protect buyers rights (very limited anyway). I think I talked the guy out of a sale, but better that than misunderstandings and courts.

[ballbreaker]

Here's the problem with the whole deal. You need an escrow. Not just for your protection but more importantly for the buyers. How would a buyer feel after making 10 years of payments only to find out the seller just got a fresh loan against the property at the bank? I assume you're not going to surrender the Chanote till its paid in full, right?

Escrow accounts are not used for payment of mortgage loan any place I have ever lived. Typically an escrow account is set up during contract negotiations so funds are protected until such time that ownership is transferred and any mortgage loans are recorded on property title (chanote). The funds are then dispersed according to the contract agreement.

An escrow account may also be set up to collect funds on a monthly basis for payment of yearly property taxes and any insurance required by mortgage holder.

I would think the OP does need to insure he names another entity in mortgage contract that will assume mortgage as the lender and receive remaining payments should he die.

[Boater]

you need a very good contract here !!!, as ' Offically ' it cant be called a mortgage, as legally Foreigners cannot lend money in Thailand !

i do know a lawyer who has done this before, and can prepare the contracts, but they are not cheap , but he knowes what he is doing, and neither party will have a headache 5 or 10 years down the line

[lannarebirth]

Here's the problem with the whole deal. You need an escrow. Not just for your protection but more importantly for the buyers. How would a buyer feel after making 10 years of payments only to find out the seller just got a fresh loan against the property at the bank? I assume you're not going to surrender the Chanote till its paid in full, right?

Escrow accounts are not used for payment of mortgage loan any place I have ever lived. Typically an escrow account is set up during contract negotiations so funds are protected until such time that ownership is transferred and any mortgage loans are recorded on property title (chanote). The funds are then dispersed according to the contract agreement.

An escrow account may also be set up to collect funds on a monthly basis for payment of yearly property taxes and any insurance required by mortgage holder.

I would think the OP does need to insure he names another entity in mortgage contract that will assume mortgage as the lender and receive remaining payments should he die.

Escrow works differently here, it is not simply for "closing". Thailand is way behind in Escrow law but they have taken some actions to remedy that

http://www.thailawforum.com/Escrow-Business.html

Many condos here are sold "off plan", ie. before they are constructed. The buyer makes a deposit, sends a payment along every month and then on completion of the condo (assuming it is ever completed) pays the balance owing and takes ownership. Many many horror stories here of unscrupulous builders/sellers not returning monies. That's why you use an escrow.

[Khun Jean]

In Thailand an escrow gives exactly what extra security???

It is just another party that holds your money, probably one that has much less assets then the developer.

Big banks are the only one that would be able to give the feeling of security, but i bet the escrow services will be in separate legal entities.

Proof me wrong.

[AyG]

A Thai house can become very run down long before 10 years is up. You risk that the lender stops paying and you end up with a worthless hovel.

[dksharron]

The land office has a mortgage paper right there.

I have done this dozens of times

Mortgage law is beneficial for both parties.

The loan is written on the back of the chinote, so no one can "sell" it before the buyer pays it off.

The interest rate is written onto the very small contract sheet at the land office.

The land office keeps a copy on the chinote, and the lender and the borrower both receive copies.

The lender holds the chinote.

Always get at least 30% down, in case of the borrower defaulting.

Someone above mentioned that foreigners cannot loan money here. Yes, we can.

I have lent, sued and taken property through the court system more than a few times.

If you would like more info, PM me.