JesseFrank Posted February 7, 2014 Share Posted February 7, 2014 I have in mind to put my house up for sale . The house is in the higher price range. To make it more attractive to potential buyers, I considered to partial finance it for a period of up to 5 years. What is the best, read safest and legal, way to go with this. Of course the contract will need to be made by a lawyer, but I think that I would hold on to the title deed until the house is paid, to prevent the hassle of lengthy court battles in case the buyer stops paying. The title deed is currently in Thai name. Is this my way of thinking legal, or is there another way, which ensures me that if the buyer doesn't pay it is a short pain to get him removed from the property. Link to comment Share on other sites More sharing options...
JesseFrank Posted February 7, 2014 Author Share Posted February 7, 2014 Hmm, looks like if I had asked for the cheapest happy hour i would have got better response, but this being the real estate forum ............. Link to comment Share on other sites More sharing options...
SDM0712 Posted February 7, 2014 Share Posted February 7, 2014 (edited) I have come across this a few times. You need a good lawyer to draft an agreement and you retain the title document and don't change it to the buyers name until they have made the last payment. Don't forget to pre-agree the percentage split on transfer fees which you won't know until accurately until you are about to transfer the property. Do a lease for the buyer whilst he is in the property for the period of the finance. The cheapest happy hours I know here are 99 baht. SDM Edited February 7, 2014 by SDM0712 1 Link to comment Share on other sites More sharing options...
JesseFrank Posted February 7, 2014 Author Share Posted February 7, 2014 (edited) I have come across this a few times. You need a good lawyer to draft an agreement and you retain the title document and don't change it to the buyers name until they have made the last payment. Don't forget to pre-agree the percentage split on transfer fees which you won't know until accurately until you are about to transfer the property. Do a lease for the buyer whilst he is in the property for the period of the finance. The cheapest happy hours I know here are 99 baht. SDM Thanks for the response. So it is legal to retain the title deed, and does it give me the possibility to remove them from the property on short notice if the default on the payments . I just see your lease suggestion, is a lease purchase legal, and does it carry a tax ? Edited February 7, 2014 by JesseFrank Link to comment Share on other sites More sharing options...
SDM0712 Posted February 7, 2014 Share Posted February 7, 2014 (edited) Well, I suggest you speak to a lawyer. But I would structure it more as a long term rental and at the end the ownership would pass to the tenant. Since they would be technically your tenants you would have right of possession under your tenancy agreement with them if they defaulted on repayments which would actually be rent payments. The Land office would asses the value themselves regardless for what you had sold it for on paper. I would avoid terms like financing because technically as a non- Thai being a money lender or financier is a prohibited business activity and you will be deported if the authorities decide that is what you are doing as a commercial enterprise. Take legal advice, which even though I have a real estate agency here I shy away from giving legal advice because I am not a lawyer. SDM PS Where is the house ? We are currently offering up to 95 million, although admittedly not much interest unfortunately. Edited February 7, 2014 by SDM0712 Link to comment Share on other sites More sharing options...
JesseFrank Posted February 7, 2014 Author Share Posted February 7, 2014 (edited) As I said the title deed is in Thai name, so the finance or lease would also be in Thai name, though the long time rental agreement is a good suggestion. The house is about 15 Km East of Pattaya. Do you mean you have 95 Million in portfolio ? Edited February 7, 2014 by JesseFrank Link to comment Share on other sites More sharing options...
SDM0712 Posted February 7, 2014 Share Posted February 7, 2014 Well out of my area, I asked because I was just wondering if we could help out, and by help out I mean find you a buyer and charge you 5%, 555555555!! No you mentioned that your house is in the higher price range and I meant that we are currently handling houses up to 95. S Link to comment Share on other sites More sharing options...
bkmbkk Posted February 8, 2014 Share Posted February 8, 2014 I am sure the buyer would also like some security. I am looking at property in Phuket and have seen a few owner finance suggestions. The terms are mostly very short (1 year) and although I have not seen the contracts in details, it looks like the owner is looking for a buyer to fail. You need to think of safety for the buyer as well. Maybe buyer depositing into a locked bank acc controlled by a lawyer so final payment can be done to you when all the money is there. Until than you can make a fauvarable lease contract. Link to comment Share on other sites More sharing options...
PattayaPhom Posted February 8, 2014 Share Posted February 8, 2014 Transfer to buyer with a charge recorded at land office same time for loan amount. Contractual payments made or default and repo will take place. 1% charge of loan amount at land office and again when removed. Its legal and quite common that properties are held as security against loans. Link to comment Share on other sites More sharing options...
LennyW Posted February 8, 2014 Share Posted February 8, 2014 You need clauses about what the purchaser can build,alter,extend during the loan term . Link to comment Share on other sites More sharing options...
LennyW Posted February 8, 2014 Share Posted February 8, 2014 Well out of my area, I asked because I was just wondering if we could help out, and by help out I mean find you a buyer and charge you 5%, 555555555!! No you mentioned that your house is in the higher price range and I meant that we are currently handling houses up to 95. S 5% Link to comment Share on other sites More sharing options...
SDM0712 Posted February 8, 2014 Share Posted February 8, 2014 I can do 1.5% in my Harrow on the Hill Branch!!!! LOL! Link to comment Share on other sites More sharing options...
Showbags Posted February 8, 2014 Share Posted February 8, 2014 I can do 1.5% in my Harrow on the Hill Branch!!!! LOL! What area do you concentrate on....we have some land in Khao Yai for sale. Link to comment Share on other sites More sharing options...
SDM0712 Posted February 8, 2014 Share Posted February 8, 2014 I have one Branch in NW London and one in Phuket, so just those areas right now. Opening associated offices in Melbourne and Grenada later this year. Link to comment Share on other sites More sharing options...
Showbags Posted February 8, 2014 Share Posted February 8, 2014 Why Melbourne ? Link to comment Share on other sites More sharing options...
SDM0712 Posted February 8, 2014 Share Posted February 8, 2014 Why Melbourne ? I'm afraid the answer is quite boring. A couple of people who worked for me in London have moved overseas, one to Grenada, and one to Melbourne. I've had the UK firm for a long time and for some reason when I set up here in Phuket we attracted a lot of interest. It seems that as essentially an English firm is was assumed (rightly!) that we would operate to a higher standard then the norm over here. In fact all my paperwork, AST etc are virtually the same as I use in the UK. I think my guys might experience a similar effect in Grenada, but I'm not so sure about Melbourne. SDM Link to comment Share on other sites More sharing options...
Showbags Posted February 8, 2014 Share Posted February 8, 2014 Melbournes a tough crowd. I might have a property for sale there one day..... I hear the Chinese are buying up big again of late, it died off for last 12/18 months, but back again. I have a story from an agent near my property and a well known shop in a trendy area was up for auction. There was a reserve of circa $2.5million and 2 chinese bidders entering a bidding war took it to somewhere around $3.4. Link to comment Share on other sites More sharing options...
SDM0712 Posted February 8, 2014 Share Posted February 8, 2014 The property world can be crazy, believe me I could tell you far more crazy stories, but we are so far off topic that this thread is stating to remind me of "History Today"... SDM For anyone who doesn't know " History Today" I really hope this link works .. Link to comment Share on other sites More sharing options...
cheeryble Posted February 14, 2014 Share Posted February 14, 2014 Pattayaphom has it right any sensible buyer will require a transfer you DON'T just hold the papers you get a lien on the property registered it cannot be resold without clearance of the debt. (Though PP I don't recall paying 1% I did give an interest free loan on a property once) Sent from my iPad using ThaiVisa app Link to comment Share on other sites More sharing options...
JesseFrank Posted February 14, 2014 Author Share Posted February 14, 2014 Pattayaphom has it right any sensible buyer will require a transfer you DON'T just hold the papers you get a lien on the property registered it cannot be resold without clearance of the debt. (Though PP I don't recall paying 1% I did give an interest free loan on a property once) Sent from my iPad using ThaiVisa app When I buy a new car on finance, I also don't get hold of the registration book and the car gets registered in the finance companies name, right ? Link to comment Share on other sites More sharing options...
cheeryble Posted February 15, 2014 Share Posted February 15, 2014 (edited) Papers yes are often "held by the bank" but I think this is more of a psychological thing the owner can of course go to the LO and request a new set. It's the registered lien that prevents a sale until the debt's paid off. I would consider any mortgagor who didn't want the property in their own name to be gullible. Sent from my iPad using ThaiVisa app Edited February 15, 2014 by cheeryble Link to comment Share on other sites More sharing options...
Farma Posted February 15, 2014 Share Posted February 15, 2014 The wife and family have bought and sold several properties this way. They have a lawyer draw up the agreement. The agreement is similar to hire purchase. If the buyer fails to meet the agreement the seller keeps the property. That agreement is then registered with the land office. The property owner (seller) holds the chanote. On final payment, buyer and seller attend the land office where the final payment is exchanged for chanote and ownership transferred. Link to comment Share on other sites More sharing options...
JesseFrank Posted February 15, 2014 Author Share Posted February 15, 2014 Papers yes are often "held by the bank" but I think this is more of a psychological thing the owner can of course go to the LO and request a new set. It's the registered lien that prevents a sale until the debt's paid off. I would consider any mortgagor who didn't want the property in their own name to be gullible. Sent from my iPad using ThaiVisa app They are not simply held by the bank, the car gets registered in the finance companies name, and get only registered in the buyers name after the finance is fully paid off. Link to comment Share on other sites More sharing options...
cheeryble Posted February 15, 2014 Share Posted February 15, 2014 (edited) The wife and family have bought and sold several properties this way. They have a lawyer draw up the agreement. The agreement is similar to hire purchase. If the buyer fails to meet the agreement the seller keeps the property. That agreement is then registered with the land office. The property owner (seller) holds the chanote. On final payment, buyer and seller attend the land office where the final payment is exchanged for chanote and ownership transferred. Hi FarmaI'm kinda surprised to hear the LO would put a lien on the chanot this way round (because it has to be on he chanot to be meaningful) Ah well live and learn. Sent from my iPad using ThaiVisa app Edited February 15, 2014 by cheeryble Link to comment Share on other sites More sharing options...
JesseFrank Posted February 15, 2014 Author Share Posted February 15, 2014 The wife and family have bought and sold several properties this way. They have a lawyer draw up the agreement. The agreement is similar to hire purchase. If the buyer fails to meet the agreement the seller keeps the property. That agreement is then registered with the land office. The property owner (seller) holds the chanote. On final payment, buyer and seller attend the land office where the final payment is exchanged for chanote and ownership transferred. Can the documents you use for the agreement be compared with a Deed ? http://en.wikipedia.org/wiki/Deed Link to comment Share on other sites More sharing options...
Mudcrab Posted February 15, 2014 Share Posted February 15, 2014 As I said the title deed is in Thai name, so the finance or lease would also be in Thai name, though the long time rental agreement is a good suggestion. The house is about 15 Km East of Pattaya. Do you mean you have 95 Million in portfolio ? You are selling on behalf of the Thai owner? Why be so concerned. Let another Thai get a mortgage...problem solved. Maybe consider dropping your price if no offers are forthcoming. Link to comment Share on other sites More sharing options...
Mudcrab Posted February 15, 2014 Share Posted February 15, 2014 I can do 1.5% in my Harrow on the Hill Branch!!!! LOL! And ..again....translate into English Link to comment Share on other sites More sharing options...
Farma Posted February 15, 2014 Share Posted February 15, 2014 JesseFrank I honestly couldn't give you the exact legal terms for the transaction. I sit on the sidelines when it comes to property transactions. Looking at the wiki page the closest I can see would be an agreement where both parties are required to sign. In my western way of thinking I would say the legal agreement is similar to hire purchase or lease purchase. Its an agreement where the purchaser is leasing/renting the property until the final payment is made. The agreement is registered against the property at the land office. This prevents the seller from selling and/or subject to the agreement, mortgaging the property during the term of the agreement. The typical agreement i'm familiar with is for a period of 18 months. The buyer places an initial large (25%+) deposit followed by 3 equal payments 6 months apart. My first experience with this method of property transaction was maybe 7 years ago. Large completed rows of shophouses were being sold as individual shophouses this way. Since then I've seen family and friends buy and sell land, shophouses and established private homes this way. I'm sure a Thai lawyer will be familiar with this method. Link to comment Share on other sites More sharing options...
djhotsox Posted February 15, 2014 Share Posted February 15, 2014 Could it be done this way: Start a Thai Company (or use an existing one if you have). Put the property "into" the Company as a company asset. Allocate shares in the company to the new buyer equal to his initial investment. Have lawyer draw up agreement that buyer makes payments on specific dates to accumulate more shares in the company. Ultimately "the Company" is bought out by the buyer thus transferring ownership of property as well. Would this work? Link to comment Share on other sites More sharing options...
JesseFrank Posted February 15, 2014 Author Share Posted February 15, 2014 And who's gonna pay two times all transfer taxes ? Link to comment Share on other sites More sharing options...
.png.3b3332cc2256ad0edbc2fe9404feeef0.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now