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stubuzz

Buying a house with installments paid directly to the owner

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Posted (edited)

Hi.

My wife has seen a house in the neighborhood that she wants to buy.  She has told me she is going to ask the owner if they will agree to accept payment in installments so we don't have to go through the bank and pay interest. Something like 50% down and the rest over 12 months.

Has anybody heard about or used this kind of arrangement before?

 

 

 

Edited by stubuzz
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1 minute ago, Pilotman said:

Unless you go to the Land Office and register the arrangement with them, and get it recorded on the chanute, the house can be sold from under you and you have no protection.

So the terms can be added to the chanote?

Would the Land Office have any pre-made contracts for this scenario?

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To add to my last, there is a process that you can enter, which is a 'rent to buy', agreement, which is simpler to draw up and may , only may, work out in the end.  Basically you agree with the owner to rent the property over x years and after that the owner will sell to you at a vastly reduced price.  This is also subject to a legal agreement between you. That is a better approach,  but you have to be prepared to walk away at the end of the rental period and just put it down as a rental that came to a natural  end. 

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3 minutes ago, stubuzz said:

So the terms can be added to the chanote?

Would the Land Office have any pre-made contracts for this scenario?

Yes, they can, I don't know if they have set wording .  I would imagine that a lawyer would help with that. 

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Posted (edited)

the only possible "deal" you might consider is IF  the owner was willing to transfer chanote to you,  THEN  you would move into the house,,,,,,,,,,,,, and make the final payments over a year as you stated.

but i don't think the owner will do that ,  do you ?

Of course,  sometimes not so easy to sell a used house,  so maybe the

owner would be motivated,  with half down and quick payment of the balance 

Edited by rumak
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I agree that it is risky. Maybe getting a lawyer to hold the chanote would work.

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If the OP is intending to put down 50% and pay off the house over 12 months, how much bank interest is that really, and is it worth the risk?  Maybe a few percent of the total?

 

As appealing as it may sound, "owner financing" reads like the first line in so many Thai real estate scams.

 

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1 hour ago, Yinn said:

Three lawyer deal.

your lawyer, seller lawyer and another lawyer hold the chanote.

MUST be different lawyer. 

MUST write from the land office on Chanote. 

MUST insurance the house. 

 

Similar to jumnong way.

 

No problem.

Better than pay bank. Also if you want to pay one year the bank will “fine penalty” for pay “to quickly”. Bank never give one year house loan. 

 

Good luck.

It is always a problem because you can never trust the other party.

 

 

 

 

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1 hour ago, impulse said:

If the OP is intending to put down 50% and pay off the house over 12 months, how much bank interest is that really, and is it worth the risk?  Maybe a few percent of the total?

 

As appealing as it may sound, "owner financing" reads like the first line in so many Thai real estate scams.

 

Bank will not give house loan for one year. 

Interest will be minimum three year x 8-12% = 24%-36%. Even if pay in one year or one month. They not care, fine if pay early. Every bank the same. 

If not believe Yinn, ask the bank yourself.

 

Plus “applications” fee. 

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56 minutes ago, bwpage3 said:

It is always a problem because you can never trust the other party.

 

 

 

 

No. 

You undersatnd “jumnong?”

same way.

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Posted (edited)

wife bought a few blocks of land from a doctor with no bank/finance needed, paid a deposit and then monthly payments, we were given receipts each payment and also a copy of the chanotes for each block, last year we asked about paying the balance in cash, he actually gave us a good discount on the agreed price and everything was done/finalized at the land office, helps when you have an honest seller.

Edited by seajae
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