Larry Posted January 11, 2016 Share Posted January 11, 2016 (edited) I've looked all over the Internet for this one, but all I found are articles about a foreigner getting a mortgage from a Thai bank. What I'm asking is whether a foreigner who gives a Thai a loan, can have a mortgage recorded against the property with the foreigner as the lender (not the owner). If so, what are the rules for such a mortgage? I should add that the Thai and the foreigner in this case are not married, but have had a long relationship....no children. Edited January 11, 2016 by Larry Link to comment Share on other sites More sharing options...
trogers Posted January 11, 2016 Share Posted January 11, 2016 I've looked all over the Internet for this one, but all I found are articles about a foreigner getting a mortgage from a Thai bank. What I'm asking is whether a foreigner who gives a Thai a loan, can have a mortgage recorded against the property with the foreigner as the lender (not the owner). If so, what are the rules for such a mortgage? I should add that the Thai and the foreigner in this case are not married, but have had a long relationship....no children. Are you a licensed money lender? Link to comment Share on other sites More sharing options...
TheCruncher Posted January 11, 2016 Share Posted January 11, 2016 (edited) Yes you can. I have a mortgage registered in my name at the land department against a property in Thai name. I had a mortgage contract made up by a lawyer, and 1 copy of it is kept at the land office, and my name is on the back of the title deed. I forget the cost of the fee but it is something like 0.1% on the amount mortgaged. Edited January 11, 2016 by TheCruncher Link to comment Share on other sites More sharing options...
Larry Posted January 11, 2016 Author Share Posted January 11, 2016 (edited) I've looked all over the Internet for this one, but all I found are articles about a foreigner getting a mortgage from a Thai bank. What I'm asking is whether a foreigner who gives a Thai a loan, can have a mortgage recorded against the property with the foreigner as the lender (not the owner). If so, what are the rules for such a mortgage? I should add that the Thai and the foreigner in this case are not married, but have had a long relationship....no children. Are you a licensed money lender? No.... I'm not a licensed money lender. Is that necessary in order to record a mortgage???? Edited January 11, 2016 by Larry Link to comment Share on other sites More sharing options...
huawei Posted January 11, 2016 Share Posted January 11, 2016 Yes. It is a loan. Get the agreement written up, part of that agreement will be that it will registered against the property on the chanote. ( liens are permissible ).You may even be advised to keep the chanote until repayment. Link to comment Share on other sites More sharing options...
trogers Posted January 11, 2016 Share Posted January 11, 2016 I've looked all over the Internet for this one, but all I found are articles about a foreigner getting a mortgage from a Thai bank. What I'm asking is whether a foreigner who gives a Thai a loan, can have a mortgage recorded against the property with the foreigner as the lender (not the owner). If so, what are the rules for such a mortgage? I should add that the Thai and the foreigner in this case are not married, but have had a long relationship....no children. Are you a licensed money lender? No.... I'm not a licensed money lender. Is that necessary in order to record a mortgage???? No. But can be illegal if you give out multiple loans, and one assumes this as a primary business. Link to comment Share on other sites More sharing options...
simon88 Posted January 11, 2016 Share Posted January 11, 2016 This is EXACTLY NOT the type of business you as a foreigner want to involve yourself in. BECAUSE you will get shot and killed if you ever try to keep a chanote and sell a propery of a Thai National who defaults on their loan to you. Link to comment Share on other sites More sharing options...
huawei Posted January 11, 2016 Share Posted January 11, 2016 Just give it as a gift and be done with it. Link to comment Share on other sites More sharing options...
LukKrueng Posted January 12, 2016 Share Posted January 12, 2016 This is EXACTLY NOT the type of business you as a foreigner want to involve yourself in. BECAUSE you will get shot and killed if you ever try to keep a chanote and sell a propery of a Thai National who defaults on their loan to you. I guess you speak out of personal experience? Link to comment Share on other sites More sharing options...
Larry Posted January 12, 2016 Author Share Posted January 12, 2016 Thanks for the good advice. Made an appointment with a highly recommended lawyer. Both of us want to have this mortgage done so I will not have to deal with relatives, etc. I am not in the lending business, and this is a mutual agreement so I don't believe there will be any violence Larry Link to comment Share on other sites More sharing options...
Broeno Posted January 12, 2016 Share Posted January 12, 2016 This is EXACTLY NOT the type of business you as a foreigner want to involve yourself in. BECAUSE you will get shot and killed if you ever try to keep a chanote and sell a propery of a Thai National who defaults on their loan to you. I guess you speak out of personal experience? Yes. He is writing from hell. Link to comment Share on other sites More sharing options...
Berkshire Posted January 12, 2016 Share Posted January 12, 2016 Thanks for the good advice. Made an appointment with a highly recommended lawyer. Both of us want to have this mortgage done so I will not have to deal with relatives, etc. I am not in the lending business, and this is a mutual agreement so I don't believe there will be any violence Larry Make sure to ask the lawyer the obvious question...which is: In the event you and the GF/partner break-up and said individual refuses to repay the "loan," what recourse do you have? I mean, you can't exactly take possession of the house. Link to comment Share on other sites More sharing options...
TheCruncher Posted January 12, 2016 Share Posted January 12, 2016 Thanks for the good advice. Made an appointment with a highly recommended lawyer. Both of us want to have this mortgage done so I will not have to deal with relatives, etc. I am not in the lending business, and this is a mutual agreement so I don't believe there will be any violence Larry Make sure to ask the lawyer the obvious question...which is: In the event you and the GF/partner break-up and said individual refuses to repay the "loan," what recourse do you have? I mean, you can't exactly take possession of the house. No you can't take possession, but you can force a sale from which the proceeds are to cover the debt. Link to comment Share on other sites More sharing options...
fekman Posted January 12, 2016 Share Posted January 12, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. Link to comment Share on other sites More sharing options...
prakhonchai nick Posted January 12, 2016 Share Posted January 12, 2016 Years ago, my wife (now ex) and I bought a house we had built in Jomtien. Cash payment. In those days a farangs wife could not buy property. The chanote was issued in the ex's Fathers name, and the lawyer drew up a mortgage contract indicating that I had loaned a substantial amount to the Father in law, to enable him to buy the house. It was a safeguard to prevent anyone selling the property without my consent or knowledge When the house was eventually sold, It was necessary for me to sign papers stating the loan had been repaid, to enable the sale to go through. In addition, because ex FiL was aged over 60. ex MiL had to come to Pattaya land office with him to sign off on the sale also. Link to comment Share on other sites More sharing options...
nauseus Posted January 12, 2016 Share Posted January 12, 2016 It can be done - mine was done 18 years ago at the same time we (me and de facto wifey) made our wills. I was surprised but that is what out law company advised. My missus was happy to do it. Not cheap but possible. Link to comment Share on other sites More sharing options...
Capt Rob Posted January 12, 2016 Share Posted January 12, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. Not clear from the OP's details but is the other party his partner and living together ? If so then you can also take out a usufruct in addition to the loan document. This person's info regarding the legality is conflicting with most advice - however in the event your partner predeceases you and you have been willed the property you have some time to sell to recoup your 'loan' Link to comment Share on other sites More sharing options...
crazykopite Posted January 12, 2016 Share Posted January 12, 2016 Thanks for the good advice. Made an appointment with a highly recommended lawyer. Both of us want to have this mortgage done so I will not have to deal with relatives, etc. I am not in the lending business, and this is a mutual agreement so I don't believe there will be any violence Larry BbMake sure to ask the lawyer the obvious question...which is: In the event you and the GF/partner break-up and said individual refuses to repay the "loan," what recourse do you have? I mean, you can't exactly take possession of the house. The person giving the mortgage would be the holder of the titled paper until the final payment is made just as if the bank was loaning the money !!!! Link to comment Share on other sites More sharing options...
Nomyai Posted January 12, 2016 Share Posted January 12, 2016 I've looked all over the Internet for this one, but all I found are articles about a foreigner getting a mortgage from a Thai bank. What I'm asking is whether a foreigner who gives a Thai a loan, can have a mortgage recorded against the property with the foreigner as the lender (not the owner). If so, what are the rules for such a mortgage? I should add that the Thai and the foreigner in this case are not married, but have had a long relationship....no children. Are you a licensed money lender? Is op sane? Link to comment Share on other sites More sharing options...
swissie Posted January 12, 2016 Share Posted January 12, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. EXACTLY ! By issuing a loan secured by property, makes the Farang a proxy-owner of the land = Illegal, no matter what the "highly recommended" Thai Lawyer says. A Farang can lend money to a Thai when the collateral consists of gold bullion, cars, 2 truck-loads or T-shirts imported from Cambodia etc,etc, but never if there is "landed property" involved. And, like "fekman" mentioned above, the magic word is "Unenforceable". = Can the Farang wait for 2 to 3 years until a court verdict is spoken, that will most likely be in his disfavor ? AND: When it comes to a court matter, the "highly recommended lawyer" that set up the watertight deal, will not be working at the same law-office anymore. Cheers. Link to comment Share on other sites More sharing options...
TheCruncher Posted January 12, 2016 Share Posted January 12, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. EXACTLY ! By issuing a loan secured by property, makes the Farang a proxy-owner of the land = Illegal, no matter what the "highly recommended" Thai Lawyer says. A Farang can lend money to a Thai when the collateral consists of gold bullion, cars, 2 truck-loads or T-shirts imported from Cambodia etc,etc, but never if there is "landed property" involved. And, like "fekman" mentioned above, the magic word is "Unenforceable". = Can the Farang wait for 2 to 3 years until a court verdict is spoken, that will most likely be in his disfavor ? AND: When it comes to a court matter, the "highly recommended lawyer" that set up the watertight deal, will not be working at the same law-office anymore. Cheers. Being mortgagor doesn't make you the proxy owner of the land. If that was so the land department wouldn't approve the mortgage. No need to create new laws to sound knowledgeable on the subject. And why would the court decide in disfavor of the mortgagor if he is a foreigner? The law is the law even in Thailand. Sounds as if you have some sour grapes to swallow. Link to comment Share on other sites More sharing options...
swissie Posted January 13, 2016 Share Posted January 13, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. EXACTLY ! By issuing a loan secured by property, makes the Farang a proxy-owner of the land = Illegal, no matter what the "highly recommended" Thai Lawyer says. A Farang can lend money to a Thai when the collateral consists of gold bullion, cars, 2 truck-loads or T-shirts imported from Cambodia etc,etc, but never if there is "landed property" involved. And, like "fekman" mentioned above, the magic word is "Unenforceable". = Can the Farang wait for 2 to 3 years until a court verdict is spoken, that will most likely be in his disfavor ? AND: When it comes to a court matter, the "highly recommended lawyer" that set up the watertight deal, will not be working at the same law-office anymore. Cheers. Being mortgagor doesn't make you the proxy owner of the land. If that was so the land department wouldn't approve the mortgage. No need to create new laws to sound knowledgeable on the subject. And why would the court decide in disfavor of the mortgagor if he is a foreigner? The law is the law even in Thailand. Sounds as if you have some sour grapes to swallow. Was going to discuss this in further detail with you. But after reading the sentence: "And why would the court decide in disfavor of the mortgagor if he is a foreigner? The law is the law even in Thailand". Right then, I knew, that this would be an exercise in futility. Cruncher, it is customary in this Forum, that by telling a joke, you finish the sentence with something like a By not doing this, many readers would actually classify this as a serious comment ! Cheers. Link to comment Share on other sites More sharing options...
username1 Posted January 17, 2016 Share Posted January 17, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. I'm trying to find more information regarding this. Could you point me to your sources/how did you find out that foreigner can't loan money to, or borrow money from Thais? Link to comment Share on other sites More sharing options...
norfolkandchance Posted January 17, 2016 Share Posted January 17, 2016 Wish I had money to loan Link to comment Share on other sites More sharing options...
Khutan Posted January 17, 2016 Share Posted January 17, 2016 I have done it a few times. My wife got a pad of "tear-off" loan agreements, like a pad of paper. I mostly lend to those that I want to Exercise the Lien........ Link to comment Share on other sites More sharing options...
fekman Posted January 18, 2016 Share Posted January 18, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. I'm trying to find more information regarding this. Could you point me to your sources/how did you find out that foreigner can't loan money to, or borrow money from Thais? I never read the law. I'm going by what my lawyers told me when I presented them with a loaning strategy to protect my interest if I decided to open a business in LOS. Link to comment Share on other sites More sharing options...
TheCruncher Posted January 18, 2016 Share Posted January 18, 2016 Most lawyers will help you do this only because they want the fees. I looked into this, and foreigners cannot loan money to, or borrow money from Thais. If (when) the doodie hits the fan, your agreement/lien/mortgage etc won't be worth the paper its written on. Unenforeceable. I'm trying to find more information regarding this. Could you point me to your sources/how did you find out that foreigner can't loan money to, or borrow money from Thais? I never read the law. I'm going by what my lawyers told me when I presented them with a loaning strategy to protect my interest if I decided to open a business in LOS. So just to say, your lawyer is different. Link to comment Share on other sites More sharing options...
dksharron Posted January 24, 2016 Share Posted January 24, 2016 I have done this many times. A foreigner can lend money to a Thai as a mortgage. It is registered at the land office. The land office has the papers for everything. The loan is completely secure, and I have forced sales from court, to the auction house. Never lend over 60% Anyone who tells you different is wrong. You can PM me if you have any questions. Link to comment Share on other sites More sharing options...
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