Through Developer

[BEVUP]

Touched on this before & have spoken briefly with Lawyer ( farang )

Story is am planning to buy house for son in Moo Baan, for a set price ( with VERY little reduction ). Lets say 1,000.000 bht loan through Developer at 9 perc after deposit & added savings Total - 2.4 ml

Starting house for Moo Baan but with slightly bigger block

Will be paying in installments & i do know fees can average 50,000 bht through a bank

Wife cant get loan & no mention of fees of any nature

Q 1. By the sounds of this it is not a mortgage loan & i have also read i may be at greater risk if i miss a payment rather then through bank

Q 2. I worry about this one - ( will try & clarify when time actually comes ) - Told there is no Contract (onlly installment payments & reciepts )

Q 3. I would hope the property deed would be put into trust under company & not under company owners name ( Dont want to be held to ransome for some mysterious payout prior to receiving deeds )

Q 4. If developer holds Deeds would i be liable for taxes after final paymment of property hand over ( thinking maybe a transfer may be required )

Q 5 Another worry - Lets say i shall pay over 5 years , But in fact plan to pay in 3, Developer says no problem , BUT do not want to end up paying the total amount for 5 years (need to clarify their interpretation )

Q 6. We all know about this & I was thinking if there was a 3rd party on the Chanoot there would be no way of hocking or selling property if i wasnt here or a inlaw was in dire straites - Wife will have to be Guardian & can one put on title not to sell until son is of age

PS - Also asked if there is going to be Moo Baan committee, but was told company to look after all - bit curious after reading threads ( & do wander after driving through others )

Would appreciate feed back as this is for sons future & a bit of money ( rather then renting in the rural city for 15yrs of his schooling )

[AnotherOneAmerican]

You are not allowed to buy a property for your son on credit terms in Thailand.

What the lawyer and MooBaan developer seem to be suggesting is illegal, which is probably why no contract.

Please don't waste your money (and his) on a property deal this bad.

Better off to buy a cheaper property outright for the 1.4M you have directly in your son's name, with him being on the Chanote and you registered as the property manager until he comes of age.

Q6: A foreigner can be registered as the manager of the property, best not to choose your wife as manager if you have concerns.

Edited April 7, 2013 by AnotherOneAmerican

[BEVUP]

You are not allowed to buy a property for your son on credit terms in Thailand.

What the lawyer and MooBaan developer seem to be suggesting is illegal, which is probably why no contract.

Please don't waste your money (and his) on a property deal this bad.

Better off to buy a cheaper property outright for the 1.4M you have directly in your son's name, with him being on the Chanote and you registered as the property manager until he comes of age.

Q6: A foreigner can be registered as the manager of the property, best not to choose your wife as manager if you have concerns.

Thanks for reply but fogot to mention they are looking at my payslips ( guess for Guarentor ) & my wife is signing the documents but financed through developer , so i guess it will be in my wifes name or the Developers until paid off & then put into sons as me as manager

[AnotherOneAmerican]

You are not allowed to buy a property for your son on credit terms in Thailand.

What the lawyer and MooBaan developer seem to be suggesting is illegal, which is probably why no contract.

Please don't waste your money (and his) on a property deal this bad.

Better off to buy a cheaper property outright for the 1.4M you have directly in your son's name, with him being on the Chanote and you registered as the property manager until he comes of age.

Q6: A foreigner can be registered as the manager of the property, best not to choose your wife as manager if you have concerns.

Thanks for reply but fogot to mention they are looking at my payslips ( guess for Guarentor ) & my wife is signing the documents but financed through developer , so i guess it will be in my wifes name or the Developers until paid off & then put into sons as me as manager

If they are using your payslips (employed in Thailand) you should approach a few banks (particularly SCB & Krungsri), as some will give a 50% home loan on a foreigners wages. Better interest rate than developer, proper contract, proper chanote.

Relying on a change of ownership later in the game really is a 'pie in the sky' view.

The developers I have been involved with really push a contract at the earliest time possible.

Yours are being 'different', which I would find alarming.

Edited April 7, 2013 by AnotherOneAmerican

[BEVUP]

You are not allowed to buy a property for your son on credit terms in Thailand.

What the lawyer and MooBaan developer seem to be suggesting is illegal, which is probably why no contract.

Please don't waste your money (and his) on a property deal this bad.

Better off to buy a cheaper property outright for the 1.4M you have directly in your son's name, with him being on the Chanote and you registered as the property manager until he comes of age.

Q6: A foreigner can be registered as the manager of the property, best not to choose your wife as manager if you have concerns.

Thanks for reply but fogot to mention they are looking at my payslips ( guess for Guarentor ) & my wife is signing the documents but financed through developer , so i guess it will be in my wifes name or the Developers until paid off & then put into sons as me as manager

If they are using your payslips (employed in Thailand) you should approach a few banks (particularly SCB & Krungsri), as some will give a 50% home loan on a foreigners wages. Better interest rate than developer, proper contract, proper chanote.

Relying on a change of ownership later in the game really is a 'pie in the sky' view.

The developers I have been involved with really push a contract at the earliest time possible.

Yours are being 'different', which I would find alarming.

Unfortunately still working abroad, otherwise i would try & get one of those low interest rate loans of Bangkok bank who I bank with

& yes i do worry about such dealings without a contract but lawyer ( Farang & thai ) working together didnt seem to phased as no specific answer was given for this, only that i was paying installments hence no contract.

[AnotherOneAmerican]

Don't do it.

[BrianCR]

AnotherOneAmerican, on 07 Apr 2013 - 09:22, said:

You are not allowed to buy a property for your son on credit terms in Thailand.

What the lawyer and MooBaan developer seem to be suggesting is illegal, which is probably why no contract.

Please don't waste your money (and his) on a property deal this bad.

Better off to buy a cheaper property outright for the 1.4M you have directly in your son's name, with him being on the Chanote and you registered as the property manager until he comes of age.

Q6: A foreigner can be registered as the manager of the property, best not to choose your wife as manager if you have concerns.

I do believe that under the age of 21 ownership of property is not possible and certainly if the property is on credit

[thaiwanderer]

inability of son to hold encumbered property is irrelevant since neither he (or his mum or OP) will apparently hold the property in any way before paid in full...and even then...no contract, amongst other issues here, huge red flag

Edited April 7, 2013 by thaiwanderer

[AnotherOneAmerican]

I do believe that under the age of 21 ownership of property is not possible and certainly if the property is on credit

You are 50/50 incorrect/correct, sir.

A Thai of any age may own Thai property, a Thai under 21 may not be in debt.

Edited April 8, 2013 by AnotherOneAmerican

[BEVUP]

Thanks all

My thoughts exactly about obtaining a contract - looks like i shall have to get lawyer to draw one up since developer doesnt see the need

& yes i do know child cant hold property under debt (finance)

Was always worried if no contract that anything was possible at end of day & still need to clarify as to who shall hold titles when this does happen

i am presuming my wife would if she is signing for installments to repay the loan that was financed by the Developer hence the 9 perc & no fees what so ever & me as guarantor

This is where i got a funny feeling when i said ok 5 years to pay back ( maybe 1.5 ml ) just a figure & then actually pay it in 2 (for maybe 1,2 ml ) & end up with the Developer saying but you said 5 so you owe us - Not good if hes holding Titles

& certainly am taking all your advice as i really do know better on such an issue & was looking for the good advice i recieved since i know there are others that may have ventured down this track

thanks

[thaiwanderer]

Thanks all

My thoughts exactly about obtaining a contract - looks like i shall have to get lawyer to draw one up since developer doesnt see the need

& yes i do know child cant hold property under debt (finance)

Was always worried if no contract that anything was possible at end of day & still need to clarify as to who shall hold titles when this does happen

i am presuming my wife would if she is signing for installments to repay the loan that was financed by the Developer hence the 9 perc & no fees what so ever & me as guarantor

This is where i got a funny feeling when i said ok 5 years to pay back ( maybe 1.5 ml ) just a figure & then actually pay it in 2 (for maybe 1,2 ml ) & end up with the Developer saying but you said 5 so you owe us - Not good if hes holding Titles

& certainly am taking all your advice as i really do know better on such an issue & was looking for the good advice i recieved since i know there are others that may have ventured down this track

thanks

based on what you've said i suspect the developer will remain the landowner and the loan won't be referred to on the title at all - a contract outside of that is especially weak

physically holding the title document is of no great protection either

negotiations as to cost of early redemption are of little significance against these issues