Self financing condo sale

[starship]

I have a S.E Asian foreigner expressing interest in purchasing my condo. They are not living or working in Thailand and so have been unable to get a mortgage here (although they have enquired). They are unable to get a mortgage in their own country for a condo of my value (under 2 million) only on more expensive condos which they don't want and probably can't afford anyway. They do not have the funds to purchase outright so have asked about financing.

I have been considering this but I am not sure of the legality or potential problems involved. Obviously at the end of a proposed financing period they would want to transfer to their own foreign name (condo is in foreign name currently). I've seen ads over the years with foreigners offering self financing on the purchase - is this possible?

They want to pay over a two year period. 'IF' I did this how would be the best way to go about it? Is there anyone else who has already done this?

'IF' I did this I was thinking the procedure would be something like:

1. Create and both sign a mutually agreed sale document. Does this need to be done by a lawyer or can you do it yourself?

2. Buyer pays and transfer a deposit to me (the seller).

3. Buyer pays installments over the finance period.

4. At the end of the finance period buyer and seller go to Land Office to transfer Chanote to buyers name and pay taxes.

Obviously like any finance agreement I would hold the Chanote until the monies are paid in full.

My main thought was potential problems with the buyer obtaining a Tor Tor 3 to enable transfer to their name at the end of the finance period and any potential problems when changing the Chanote. If they paid a deposit and then paid installments over a two year term would they still be issued with the Tor Tor 3 for the full amount and additionally also because there's a two year gap between a deposit remittance and the final monthly remittances? Obviously they would also need to transfer in foreign currency to obtain this, and thinking about it I guess they would need to transfer from their account abroad to their account in Thailand to my account here to get it.

This is another slight problem as they currently do not have a Thai bank account. They have enquired at a few banks but so far have been refused. I know advice on this forum is to try other banks/branches and I will suggest this. Actually, is it completely necessary for them to have a Thai bank account to be able to get a Tor Tor 3 and put in their own name. How does it work for foreign/institutional investors for example who buy properties from overseas and are not actually present for the sale?

I am also slightly concerned about a possible scenario where a buyer might want to cancel the agreement for any reason. How could I protect myself against this as a potentially mid-finance cancellation could be very problematic for me. Any other potential problems you can foresee?

All advice appreciated

Thanks

[johnnyk]

Too many ifs. Sell to someone who has the money without strings, ropes and hawsers attached.

[ezzra]

Don't get involved in any potential legal headache, you're a foreigner, they're foreigners,

and in case of legal problems the court system will serves you right here, not your language,

not your mother land, cash or loan from Thai bank, don't sell any other way...

[PattayaPhom]

I get customers like this everyday, want to buy but havnt the money. Find a commited buyer in a position to purchase.

[davejones]

Or ask him to finance via a private individual who is willing to take on the risk. I've heard people on here offering money. That means you get the money in full and the possible headaches are left to someone willing to take them on.

[FiftyTwo]

Self financing over two years.

Lease purchase agreement for the two years, 24 payments with the last payment the purchase payment.

That way if they don't make a payment, they lose the lot, and you can sell again.

I wouldn't do it though, cash or clear off is easiest.

Edited December 28, 2013 by FiftyTwo

[starship]

The suggestion for them to find their own private financing makes sense and would take the burden off me. Too many 'if's' as you say. This is my concern. I think you've clarified the situation for me, a cash sale is required .

Thanks.

[cheeryble]

Unless you need the money fast I disagree with most here and would do the sale unless you can replace them with regular buyers easily.

If I could get a mortgage rate on all my funds I'd be a pretty happy man.

Once they have paid you something you are at a distinct advantage whatever happens.

[Aussieroaming]

Sounds like a firkin lot of hard work to get a sale.