House Sale With Owner Financing

[jbrain]

Ok,I sold my house which is registered in company name to another foreigner.Deal is that he pays 2/3 in cash and the remaining 1/3 in monthly installments over 3 year with a fixed interest.The buyer agrees that we just change director at the end of the contract,so that no landoffice is involved, and that he only receives the title deeds after everything has been fully paid.

So in fact I agree to give him a mortgage over 3 years.

As there will happen no transfer at the landoffice, I think it is a bit dangerous to write a mortgage contract and mention the purpose as a house sale,while the buyer of course will find it unsecure if only the sale of a company is announced in the contract.After all, that way I can sell the house and he will end up with an empty company.

I can go to a lawyer to make a contract, but since they charge me 10K to write the piece of paper and I'm a cheap skint,I give it a try here to give me an example of a legal contract which I can copy.

[johnnyk]

Make it a personal debt, that he owes you xxx baht payable on dd/mm/yyyy. You have the chanote until he pays in full so its in his interest to pay.

[jbrain]

Make it a personal debt, that he owes you xxx baht payable on dd/mm/yyyy. You have the chanote until he pays in full so its in his interest to pay.

I understand that,and actually I have no real fears on losing out,however you never know.

My only concern is how to make up the contract, as the guy buys a house but technically I assume there is no sale of a house.

[yankee99]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

[canman]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

I did the same and it is the only way to protect both parties.

[jbrain]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Thanks for the advice, but I understand that if I make the buyer director straight away he as a director can sell the house which is registered in company name even before

the mortgage is registered.

Because I can in that case only make a mortgage with the company, and will have to make him director first .Correct?

[canman]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Thanks for the advice, but I understand that if I make the buyer director straight away he as a director can sell the house which is registered in company name even before

the mortgage is registered.

Because I can in that case only make a mortgage with the company, and will have to make him director first .Correct?

This is where you really need a lawyer.

[jbrain]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Another issue I see is when the company doesn't pay the mortgage,I will have to start 2 lawsuits.

One to make the company pay and a second to remove the director from the house, which he actually rents from the company.

I'm afraid that I will even have no rights to removing the director from a house which is not my property.

[yankee99]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Thanks for the advice, but I understand that if I make the buyer director straight away he as a director can sell the house which is registered in company name even before

the mortgage is registered.

Because I can in that case only make a mortgage with the company, and will have to make him director first .Correct?

I have done a few of these deals and never a problem. I let my lawyer handle it. I know you dont want to pay but penny wise dollar foolish.....

I dont remember the order director or mortgage first but a real lawyer can sort it out....All done the same day...

[yankee99]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Another issue I see is when the company doesn't pay the mortgage,I will have to start 2 lawsuits.

One to make the company pay and a second to remove the director from the house, which he actually rents from the company.

I'm afraid that I will even have no rights to removing the director from a house which is not my property.

You have to look at it from the seller and buyers view....with a mortgage you will at least have real property security. Without one the buyer can sue for what? cash that is spent.....

[jbrain]

You are not selling the house you are selling the company which owns the house. The buyer is a fool if he is not made director. He has no protection as the director can basically do what he wants......

The proper way would to do it is make the buyer the director and then register a mortgage at the land office. This is the only way to protect both parties...

Another issue I see is when the company doesn't pay the mortgage,I will have to start 2 lawsuits.

One to make the company pay and a second to remove the director from the house, which he actually rents from the company.

I'm afraid that I will even have no rights to removing the director from a house which is not my property.

You have to look at it from the seller and buyers view....with a mortgage you will at least have real property security. Without one the buyer can sue for what? cash that is spent.....

I don't really understand your last line, but to make it clear, of course this is a 2 party deal and both should have security.Me a bit more than the other ofcourse

But my point was that the buyer will move into the house from day one of course.

If the comapny doesn't pay the mortgage I will have to go to court with them,which can take a few years if they play it right.

In the mean time I guess I will not be able to take legal steps against the person who is occupying the house as I'm suing the company at that time and not the director,and the director will have a rental contract with the company.

So after all it will take a few years to get the mortgage lawsuit cleared, after which I can start all over again to remove the tenant, which will take another few years.