Land Price Agreed! What Do I Need To Do Now?!

[sutton1001]

Have agreed to pay 600k for a plot if land. The guy who is selling wants 50k to do the paperwork and swap name etc in to my wife's!

This to me sounds way high?! Or maybe I'm wrong. So my questions are what do we do regarding paper work etc. Is it straight forward? And where do we do the exchange of funds so as I don't get ripped of etc etc. The guy wanted a down payment but I have declined and said that I will do the whole thing on Monday when my funds clear from England.

Thanks. Jay

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[rgs2001uk]

He is ripping you off.

What paperwork, its done at the land office.

Sounds to me as if he wants you to pay the tax he should be paying.

Take cheque payable to this guy with you to the local land office, the land office will tell you the amount of tax to be paid, they can tell you in advance, that way you get an idea of how much he will pocket.

[sutton1001]

Thanks for the reply rgs2001uk. As I thought! Do you have any idea how much the land name Chang is roughy?! Just so I am aware of what to expect so this idiot can't try to pull a fast one?! Thanks again.

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[rgs2001uk]

I dont know what you agreed on, 600k for the land and 50k for the costs, or 600k for the land and you pay the costs (which wont be 50k).

If I were you I would offer him 550k for the land and 50k for the costs, that way it still costs you 600k all in.

I would also get a copy of the chanote and go to the land office and ask them how much tax to be paid if land sold at 600k.

I know whats going to happen here, matey boy wants to do the paperwork, he will list the sale price as say 400k, lets assume he bought for 200k, he now pays tax on a 200k profit.

You then decide to sell the land for say 800k, you will be hit with a tax bill on 400k profit, because he lied as to the correct sale price.

The actual cost to change the chanote is peanuts.

You are actually buying land with a chanote I trust.

As I mentioned earlier, go with him and have the correct sale price listed, give him a cheque at the land office is the usual way.

The other problem is, many of these people dont have the actual cash to pay the tax, the solution is, give a cheque for say 580k and give him 20k in cash to pay the tax.

The bottom line is, how much do you want to buy this land?

PS, in every land office I have been in, there is a large sign behind the counters that will list the rates of tax, if you dont read Thai take the mrs with you.

[Pib]

Yeap, you would be getting rippd off BIG TIME. At the land office the administrative cost to change ownership/names on a chanote is only a couple hundred baht....peanuts as mentioned above. Been there, done that when the Thai wife and I bought our Bangkok home/land along with putting my name on the chanote with usufruct rights. Now if there is some tax due on the land then that is something you need to work out with the seller as to who will pay what. Definitely only give the cashiers cheque/final payment at the land office....any interim payment you might give is strictly a down-payment deal between the seller and buyer....mostly to give the seller a warm fuzzy...to help ensure the buyer don't back out at the last minute. You should also do some more research to ensure the current owner owns the land free and clear...or is the chanote/land ownership document encumbered because the owner owes money/used the land title to finance a loan or is still paying a mortgage on it. Have him give you a copy of the land title and then you and the wife go to the land office and ask if it's free and clear to buy, taxes that would be due, etc.

Edited January 9, 2013 by Pib

[hgma]

general question related to topic.

Would you, or anyone, buy sell, trade, live, the same way @ your homecoutry.

as the prophet calling out in the desert, loads of people start buying , and selling without ANY notion of rules, language and consequents.

What is wrong with getting some professional (foreign) legal aid in these matters.

[dave111223]

I think people should give the seller the benefit of the doubt as he may have meant that 50K was to cover the taxes at the land office and not just "paperwork" (still way to high for 600K land).

I would go to the land office find out the real amount of tax that will be paid and then renegotiate to pay half of it (so it tax will be 15K, offer to pay 7.5K etc..).

[BEVUP]

general question related to topic.

Would you, or anyone, buy sell, trade, live, the same way @ your homecoutry.

as the prophet calling out in the desert, loads of people start buying , and selling without ANY notion of rules, language and consequents.

What is wrong with getting some professional (foreign) legal aid in these matters.

Yes exactly

May seem cheap compered to western countries but certainly no drop in the ocean

Sounds like 1 Rai of land & wuold want to have power /water & good frontage

& NOR SOR 4 ( SHANOOT)

Many try sell POR SOR 3 ( inwhich should only be passed down through family for agricultural use )

Oh first of all he is ripping yu off

When wife bought hers we engaged a lawyer & also put usufrut on

Not sure about stand alone land but transfer fee of 2%

I dont think i paid that as i only paid to the uncle said price ( & since was selling to neice the price dropped from 3000 bht to 600 bht )

Later found out you could do Usufrut for 300 bht

Paid lawyer 15,000 bht for everthing signe / sealed & delivered at land office in triplicate & stamped

Had relative in land office so could check land prices

[Khun Jean]

general question related to topic.

Would you, or anyone, buy sell, trade, live, the same way @ your homecoutry.

as the prophet calling out in the desert, loads of people start buying , and selling without ANY notion of rules, language and consequents.

What is wrong with getting some professional (foreign) legal aid in these matters.

In our home country there would be legal ways to get back at a lawyer that gives wrong advice. In Thailand you can't, hence most lawyers in Thailand will do what you ask them to do, legal or not and sa "no problem".

The best advice is to get the knowledge first from official information sources (government websites are a good start), get a lawyers help to find the info that is needed and triple check it.

Confirm with other experiences, then when ready make the decision to buy in you Thai friends/wifes name.

[jamescollister]

general question related to topic.

Would you, or anyone, buy sell, trade, live, the same way @ your homecoutry.

as the prophet calling out in the desert, loads of people start buying , and selling without ANY notion of rules, language and consequents.

What is wrong with getting some professional (foreign) legal aid in these matters.

Yes exactly

May seem cheap compered to western countries but certainly no drop in the ocean

Sounds like 1 Rai of land & wuold want to have power /water & good frontage

& NOR SOR 4 ( SHANOOT)

Many try sell POR SOR 3 ( inwhich should only be passed down through family for agricultural use )

Oh first of all he is ripping yu off

When wife bought hers we engaged a lawyer & also put usufrut on

Not sure about stand alone land but transfer fee of 2%

I dont think i paid that as i only paid to the uncle said price ( & since was selling to neice the price dropped from 3000 bht to 600 bht )

Later found out you could do Usufrut for 300 bht

Paid lawyer 15,000 bht for everthing signe / sealed & delivered at land office in triplicate & stamped

Had relative in land office so could check land prices

Just wondering, did your high priced lawyer mention section 1469 of the civil code, or did it slip his mind while you were giving him money. Jim

[ballbreaker]

OP here are the tax and fee rates payable upon transfer.

• Transfer Fee 2% of the appraised value of the property
  
• Business Tax 3.3% of the registered (sale) value or appraised value (whichever is higher) but not paid if owned over 5 years
  
• Stamp Duty 0.5% of the registered value if owned over 5 years.
  
• Withholding tax;
  
  • if the seller is a company withholding tax is fixed at 1% over the registered sale value or appraised value (whichever is higher)
    
  • if the seller is a private person withholding tax is calculated at a progressive rate based on the appraised value of the property
    

OP you as buyer should only pay the Transfer fee at most and seller should be responsible for the other three on the above list. All terms and sale price should be in a contract you sign with seller. Also there is no need to hand over any part of purchase price or transfer fees until you get to the land office and paperwork is ready for signatures.