When engaging in land collateral agreements, the seller is typically responsible for the associated fees. While it’s possible to negotiate with the buyer to cover these fees initially, the seller ultimately remains responsible. To ensure you’re prepared, let’s explore the specific fees involved in land collateral services and the proportions to consider.
What Fees Should Sellers Prepare for Land Collateral Agreements?
For land collateral agreements, the fees required depend on whether the seller is a legal entity or an individual. Here’s a breakdown of the fees for each case:
1. For Legal Entities
The fees required for legal entities include:
- Application Fee: 5 THB per plot.
- Witness Fee: 20 THB.
- Transfer Fee: 2% of the appraised value (from the Land Office) or collateral sale price.
- Stamp Duty: 0.5% of the appraised value or collateral sale price.
- Specific Business Tax: 3.3% of the higher of the appraised or collateral sale price.
- Withholding Tax: 1% of the purchase price or government appraised value, whichever is higher.
2. For Individuals
The fees required for individuals include:
- Application Fee: 5 THB per plot.
- Witness Fee: 20 THB.
- Transfer Fee: 2% of the sale value.
- Withholding Income Tax: Calculated per the Revenue Department’s guidelines.
- Specific Business Tax: 3.3% of the higher of the appraised or collateral sale price.
- Stamp Duty: 0.5% of the collateral sale price.
3. Additional Related Fees
- Collateral Contract Renewal Fee: 50 THB per plot.
- Redemption Fee: Payable at the Land Office.
- Withholding Tax: According to the Revenue Department’s rate.
- Stamp Duty: 0.5%.
- Application and Witness Fees: 50 THB per plot.
Documents Needed for Land Collateral Agreements
To process a land collateral agreement, sellers must prepare documents based on the specific purpose, whether it’s for collateral or redemption.
For Collateral Agreements
Documents required include the original land title deed, identification card, household registration, marriage certificate (if applicable), name change certificate (if applicable), and other essential documents such as property structure documents on the land title or spouse’s consent documents.
For Redemption
Required documents include the original land title deed, identification card, household registration, marriage certificate (if applicable), and name change certificate (if applicable).
In summary, the fees for land collateral agreements are mostly regulated by law. However, sellers may negotiate with the land collateral company regarding initial fee responsibilities. For instance, the company might handle the fees initially, with the seller reimbursing later, or the seller may opt to settle these fees directly with the Land Office.
