Purchasing Land

[geordie]

I am just about to Purchase some land for the children for when they get older. The cost of the land is reasonable, but the seller is asking for another 10.000 baht to change the name on the deed title. I live in the Northeast of Thailand (Sakon Nakhon), is this about right for the cost of changing the names.

I am in the states at the moment and my wife is dealing with this.

Thanks in advance.

[Thaipwriter]

I am just about to Purchase some land for the children for when they get older. The cost of the land is reasonable, but the seller is asking for another 10.000 baht to change the name on the deed title. I live in the Northeast of Thailand (Sakon Nakhon), is this about right for the cost of changing the names.

I am in the states at the moment and my wife is dealing with this.

Thanks in advance.

Hi, There are various taxes that have to be paid at the land office which total roughly 6% of the goverment valuation of the land.

The figure you are paying is irrelavant.

Best to let your wife deal with this as the tax requested will probably spiral upwards remarkably when a farang is involved.

How much land are you buying and for how much?

[geordie]

Thanks for the quick responce Thaipwriter.

We are purchasing the land for 180.000 baht. My wife will be dealing with everything, as i said i am in the states working, my wife is Thai. The reason i was asking is because i do not know about the taxes etc. Rather than the seller sorting out the land name transfer, could my wife do it at a lesser cost. Maybe it is just me but it sounds odd them asking for an extra 10.000 Baht to sort out the transfer.

Its is 1 Rai that we are buying.

Thanks for the info anyway.

Geordie

Edited January 15, 2006 by geordie

[Thaipwriter]

well 6% of 180,000 is 10800 so things kind of add up.

One thing that i did not mention is that its customary for the buyer and seller to split the taxes. this happens with Thais but farangs get the full whack normaly.

I would think that on this occassion they are asking for all the funds for the taxes to come from your pocket!

Ask you wife to clarify who is footing the bill.

[geordie]

Thanks for that info Thaipwriter. I am not really concerned to much if i pay all the taxes, but as you mentioned when a Farang is involved the price of things do tend to rise. I think that i am getting the land reasonably cheap, as about 1 1/2 years ago i was offered 1 Rai next to the one i am purchasing now and they wanted 300.000 baht for that. So i will give them the 10.000.

Thanks for replying, the info is much appreciated.

Cheers Geordie

[N&M]

The taxes have changed somewhat, unless the upcountry rates are different, which I doubt.

But transfer fees are 2% of the sale price. Stamp duty is 0.5% of the sale price.

Splitting the fees are not neccessarily the norm, there seems to be 'a what ever we can get away with' clause when selling land. I have seen the splitting of the costs, I have seen the seller pay all and I have seen the buyer pay all. So basically it is whatever you arrange and bargain for.

When we bought land, the seller paid the costs, but as can be expected, he built that into his sale price.

At the land office, it is a general rule that the 'actual' sale price will be negotiated lower with a small fee under the table, so as to pay less taxes. Our land went from 5.4mil to 4mil at the office to decrease taxes plus 'something' under the table from the seller to facilitate this.

So, the 10k sounds a little high, but for the sake of rocking the boat on such a small amount.....'up to you'

[geordie]

Thanks N&M,

i talked to the wife last night and told her to make sure what they mean about the 10.000 baht, if that is for the full name change and taxes etc, then i will be happy with that. I do not want to give them the 10.000 and then have to pay the taxes aswell.

Thanks for your's and Thaipwriter's info it is really appreciated.

All the best Geordie