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Non Performing Loans

from Peter Just a short note. My house was purchased as an NPL through Thai Farmers bank (or their NPL branch known as Progress Management LTD). As some of you might know, when you buy an NDL from the bank there is a usually protocol that states that you the buyer assumes all transfer taxes. After we’d signed the contract and met at the land transfer office to do the deal, the final bill was not 98,000 as I had expected but 240,000! When I asked why, they said there was now a 3.5 per cent sellers tax for houses sold within five years. I explained that I was the “Buyer” not the “seller”. But the bank person explained that I had signed a contract which stated all transfer fees. I went through the roof and lodged a formal complaint with the bank.

At which point they said they would having a meeting to discuss the issue. For the next week, I had figured it was a no win situation (what bank actually would say they were wrong when their customer signed an agreement.) Well, its a happy ending cause the bank actually agreed and paid the 142,000!

So there is justice out there! Beware, make sure if you deal with an NPL, to find out all the details.

editor: good point. I haven’t dealt with NPLs (Non Performing Loans) — would be interested to find out more about it and how the price compared to the market price. I’ve run into this surcharge for land parcels previously transferred within the past 5 years, normally it is the seller who picks this up. Good job on getting the bank to pay it!

1 Comment

  1. An excellent point and goes to reinforce what I have always maintained in the land of lies check, cross check and check again, dont rush.

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