Lend money in Thailand, from an article published in the magazine in Thailand
Lend money in Thailand: how to protect yourself through proper legal guarantees
… Neither for Love, nor for money, neither for the sky …
Despite popular wisdom clearly admonishes us to quote the old proverb “lend money to a friend … you lose money and friend,” it is true that, living in a country so far away and so different from ours, (and our eyes lacking in on healthcare and social!), we could find ourselves in both was trench warfare: it cannot deny the request for a loan or worse, having absolute necessity.
This article will try to explain how we can dispel the saying goes through the proper use of the instruments permitted by law and to obtain, or provide legally, the highest standards possible in cases where we can find creditors or debtors of anyone.
We start from the first case, that don’t have, for various reasons that apply and you are forced to not being able to say no.
For example, “I want to pick up Tirak never pichai. And never ever sabai Mama. ” Or “John! I’m sick and i don’t have the money to treat myself and would like to return to Italy … “and more”.
How to do then to combine our good heart with our right to return to what generously lent?
Well the law provides us with several “Tools” such as we chose the three in our opinion the most effective and simple application, two absolutely legitimate, the third, banned in Italy when run in collateral for a loan, but very popular and very effective even ‘ improper and hazardous. More precisely: the contract of loan, the mortgage and sale with Covenant of redemption (Khai Faak).
Lend money in Thailand. You can, but with caution.
Before continuing, I would like to mention that the wear is a felony, in my humble opinion, one of the most sinister and mean-spirited, it’s not so certainly dedicated to potential lenders, those whom Dante puts it, with good reason, in the third circle of hell.
“and since the usurer takes another way,
nature itself and its follower
otherwise, he disdains he pon Saliba.
Fraud, whence every consciousness is the grip,
can man use on him that he trusts ‘n
and in what imborsa not get engaged … “
but to the men and women with a good heart who generously do not know or cannot deny a loan for those who have needs.
I should like also to stress that loan money is a voluntary act. If the borrower does not have enough funds to return because it has not been shown any good as collateral, it will be very difficult that you can recover what carelessly bestowed.
Let us look at this a little more closely. ”
It may seem obvious that anyone going to pay money in Thailand, even large and in cash, to protect itself by drawing up a contract, I assure you that in most cases it’s not. The vast majority of loans, particularly from the Italians to other Italians or the families of their fellow Thais, are usually not accompanied by any legal guarantee.
As in any contract a “loan agreement”, why have a solid legal value, requires the affixing of signatures of the Contracting Parties (debtor and creditor) on each page, the subscription by two testimani (preferably attach copies of documents by all signatories), proof of payment, the agreed deadline shown are for return, an indication of the interest owed by the debtor that by law, shall not be greater than 15% per year (if they aren’t indicated, the law recognizes the right to a 7% a year) and, if possible, an indication of the collateral. The latter may consist of movable, immovable property register (eg. cars, boats, tractors, houseboats! etc) or in real estate.
If a guarantee of the loan were made immovable property register or real estate, you can register your contract to the appropriate Government Office and apply at the same mortgage.
Real estate mortgage
Real estate mortgage is a legal institution ancient originating from Roman law and now present in almost every country in the world. The Thai civil code reads: a mortgage is a contract by which a person, called the mortgagor, gives a right to another person, known as the beneficiary of the mortgage or mortgage lender, guaranteeing the execution of an obligation, without handing over (put) the benefit to the mortgagee.
No property can be mortgaged except by its rightful owner at the moment of switching on the mortgage. It is also possible to encumber individual property to guarantee the debt of others.
With respect to the execution of the mortgage, the mortgagee may submit a civil action in court to obtain an order for seizure and sale, consistently through public auction, property mortgaged. But be careful: If the consideration received is less than the amount due, the debtor will not be held liable for the difference. In other words the seizure of the well and the public sale of the same extinct “per se” the debt in its entirety regardless of the same entity.
The mortgage on the property will be registered at the land registry of relevance (Land Office) at the cost of one per cent of debt registered.
There are no limitations or restrictions for foreigners who can be lawfully registered as mortgage lenders.
Sale redemption agreement
Sale with agreement to ransom in theory is not a form of guarantee of a debt. As mentioned above, recent judgments of the Court of appeal, were declared illegal in our country (Italy) the use of a legislative instrument that today appears to very ambiguous and certainly very risky for the seller-borrower.
Basically the sale with agreement to ransom is a registered contract and final, through which ownership of an asset sold passes to the buyer subject to a notice, by virtue of which the seller can buy back the asset within a stipulated time frame at an agreed price.
A practical example
An example will help us better understand the concept and the numerous hidden consequences that such a contract could bring.
Suppose we have an absolute and urgent need for money. We cannot in any way identify the amount that we need, but we own a nice apartment that we bought, for example, for ten million baht. We plan to sell it, but the market is depressed and get a fair price would be slow and difficult.
Mr. Guy becomes aware of our willingness to sell and think about making a deal. Gives half of it, but with the agreement, “Covenant”, which you can redeem it in one year, two or three at an agreed price, larger than received and increased interest and maintenance charges.
In the case of goods coming from you redeemed within the specified period (not more than 10 years of real estate and movable property not later than 5) the good will be considered as ever purchased by the buyer and go back to the previous owner. If, however, will not be redeemed on expiry of the period prescribed, the ownership of the asset will pass automatically to the buyer. Les Jeux sont faits!
You can imagine what and how many misuse such a “legal instrument” may lend itself to begin with, for example, by the possibility of a mendacious (and illegal) but hardly detectable statement on sale price and therefore to ransom. So all that remains is some advice: be very, very careful or how do we ask the question “If someone Rome can I ask a favor?” answer “and as no! Just ask li numme deaf “(for an accurate translation can be enjoyed at one of the Embassy’s confidence).
Lend money in Thailand is an article published in the magazine in Thailand.