To get the best terms for your mortgage or sale with right of redemption, you must treat your property like a high-value product. Valuation is both an art and a science.
1. Factors Influencing Valuation Professional appraisers use several metrics to determine the "Loan-to-Value" (LTV) ratio:
Market Comparison: Looking at the actual closing prices of similar plots within a 2-kilometer radius over the last 6 months.
Infrastructure: Land with "Public Road" access is significantly more valuable than land with "Private Road" or "Servitude" (Phara-Jam-Yom) access.
Legal Encumbrances: A property already tied up in other legal disputes or with overlapping boundaries will see a 30-50% reduction in appraised value.
2. Mandatory Documentation Checklist Prepare these documents in advance to avoid delays at the Land Office:
Original Title Deed (NS4J/Chanote): Ensure it is the "Red Garuda" version, which is the highest level of ownership.
Identification: Original ID cards and Tabien Baan (House Registration) for both parties.
Spousal Consent: If either party is married, a Letter of Consent from the Spouse is mandatory, even if the spouse's name is not on the deed.
Building Permit: If the property includes a house, the Building Permit or the "House Number Request" document helps prove the value of the structures.
3. Financial and Tax Planning Every property transaction involves government fees.
For Mortgages: The fee is generally 1% of the mortgaged amount (capped at 200,000 THB in some cases).
For Sale with Right of Redemption: Since it is a "sale," the fees are higher. You must pay a 2% Transfer Fee, Withholding Tax (based on a sliding scale), and 3.3% Specific Business Tax (if the property was held for less than 5 years).
Tip: Always negotiate who pays the fees (Seller vs. Buyer) before arriving at the Land Office to prevent the deal from collapsing at the counter.
