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Securing title deed

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I have a buyer for my land and house. He offers me to pay a 30% deposit in 12 monthly installments. During that time i will stay in the house. After the 12 months he will come with the bank and get a mortgage for the reminder.

Of course the title deed will only be transferred when the mortgage is approved and the total sum paid.

The buyer ask me how he can be guaranteed that on the 12 month I don't disappear with the 30% deposit and the title deed, or even sell the property to someone else.I understand his concern, but I want to be safe myself also.

Any suggestions how this is done ?

Whatever you do remember that his getting a mortgage is not a given, you need to have a plan to cover the eventuality that he cannot obtain financing.

How about this:-

I don't think Thailand has escrow legislation per-sé, but you could place the deed with a mutually acceptable lawyer to hold until the monies have been paid (monies also to be held by the lawyer). If he fails to get the mortgage he gets the money back (or an agreed percentage of it), you retrieve the deeds.

"I don't want to know why you can't. I want to know how you can!"

  • Author

Whatever you do remember that his getting a mortgage is not a given, you need to have a plan to cover the eventuality that he cannot obtain financing.

How about this:-

I don't think Thailand has escrow legislation per-sé, but you could place the deed with a mutually acceptable lawyer to hold until the monies have been paid (monies also to be held by the lawyer). If he fails to get the mortgage he gets the money back (or an agreed percentage of it), you retrieve the deeds.

I yesterday discovered that SCB has Escrow agent service, so I will have to contact them about the details.

http://www.scb.co.th/en/wholesale-banking/Corporate_trust/escrow_agent

Why would I have to give him back any of the deposit if he fails to secure the mortgage. Is this some kind of law ?

I'm not gonna take the house off the market for a year to walk away with a few peanuts, do I ?

The escrow service (or reliable lawyer --- oxymoron?) is good idea. You have valid concern about failure to perform by the buyer. The standard practice in USA is to specify in the purchase contract (you do have a purchase contract, yes?) that the deposit (Or some part of it) be made non-refundable for any reason; this would be to compensate you for taking the property off the market.

  • Author

So I made the call to SCB. Took the usual 15 calls and extreme headaches before someone actually understood what I was inquiring about.

At the end I got called back by someone responsible for the Escrow service, who told me that it doesn't exist.

So why you publish it on your website then?

Well we're working on it, but some laws changed, and we hope to be able to provide these service in the future.

Thainess at it's best gain.

  • 2 months later...

The escrow services SCB promotes refers to the Escrow Act which is not applicable in your case. You are right that - apart from that law - there is no escrow legislation and, therefore, the buyer should not trust on an escrow arrangement out of the scope of the law.

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