What can go wrong when selling a home

[faq2mfh]

I have certainly learned a lot on this forum regarding what can go wrong when buying a home in HH. So my question is what can go wrong when selling a home in HH?

[margaretcarnes]

Must admit I've never sold a home in HH - but have sold a business.
I guess the principals and pitfalls are maybe pretty much the same if you sell privately. (But hope one of the property guys will give you guidance on selling through an agent.)
With a private sale I would watch out for potential buyers who offer a deposit, and balance by a certain date. Western minds view this as a 'contract' and can miss out on better offers while waiting for the balance of payment. Don't.
I would also be cautious to avoid any 'comebacks' following a private sale, and make sure it is clear what is included in the price.
Overall - using a farang agent could save hassle, and hopefully avoid the need for you to deal with the authorities yourself.
I'd also be doubtful about entrusting the sale to a Thai partner if you have one. For no other reason than they may be reluctant to insist on the asking price if faced with a 'higher class' Thai buyer.

[Super Joe]

I have certainly learned a lot on this forum regarding what can go wrong when buying a home in HH. So my question is what can go wrong when selling a home in HH?

Hi, various different implications may apply to different properties, and some can be crucial. I'd definately have a proper legal contract drawn up, particularly if it's a new'ish property on a managed development.

Just some of the possible implications:
1) Your method of ownership, ie: Limited Company, leasehold or freeehold by a Thai, and your buyers desired method of ownership, this could be a big issue if say they want the freehold from your leasehold lessor.
2) If you're leasehold, unless a specific clause has been included in your lease contract, the lessor will have the right to approve, or not, any new buyers. Ditto re: clause as to whether or not your current lease contract rights will be given by the lessor to any new buyers.
3) If leasehold, about 6 months ago the Land Office required newly structured/worded lease agreements in relation to the 2 no. extension periods. Someone has to pay a lawyer's fees to draw up this new agreement, rest assure the lessor will not be footing this bill.
4) Is it on a development where the new buyer would need to sign up to the development's management company rules and regulations regarding service fees, access rights, visitor parking, pets, building modifications to your own house, adding of structures within your own land, signing up to a residents association etc
5) Any income tax obligations liable by you on any capital gain (Inland Revenue Dept., not Land Office property sales taxes), this can vary from nothing due to a fair amount, depending on your ownership method, number of years property held etc.
6) Is property still under any warranties/guaranties from developer and/or builder, this needs to be agreed upon and not part of your responsibility.
7) Get it signed off by the buyers that they have carried out all necessary checks and confirm there are no defects of ANY kind. Ditto, they've carried out all necessary due diligence with regards to the legal documentation (land title, building permit, architectural/structural drawings, lease agreement contract, house registration etc.)


The above certainly isn't exhaustive, if you want to do it so there is absolutely no comeback or risk to you at a later date get a lawyer to draw up a watertight sales contract, there's a big old section in the law of seller's responsibilities and obligations.

SJ