All contract-related fees are to be borne by the borrower.

On the Contract Date (KaiFaak - Sale with right of redemption (ขายฝาก) / Mortgage Agreement)

For Individuals (Thai Nationals)

• Registration Fee for KaiFaak (ขายฝาก) (treated the same as a sale/transfer):

2% of the appraised value or sale price, whichever is higher

• Withholding Personal Income Tax:

Calculated based on the appraised value using a progressive tax rate

• Specific Business Tax (SBT):

Exempt if the property has been held for more than 5 years or if the seller's name has been registered at the property for over 1 year

• Additional SBT:

0.5% of the appraised value or sale price, whichever is higher

For Juristic Persons (Thai Companies)

• Registration Fee for KaiFaak - Sale with right of redemption (ขายฝาก):

2% of the appraised value or sale price, whichever is higher

• Withholding Corporate Income Tax:

Calculated at 1% of the appraised value or sale price, whichever is higher

• Specific Business Tax (SBT):

Exempt if the property has been held for more than 5 years

• Stamp Duty:

Not required if SBT has already been paid

• Land Office and Document Fees:

Approximately 1,000–2,000 THB (for application forms, certified copies, etc.)

On the Redemption Date

Typical Fees for Redemption (Land Office Standard Rates)

• Redemption Registration Fee:

50 THB (standard fee)

• Application & Document Fees:

~100–200 THB (for application forms, certified copies of the title deed, etc.)

• Other Taxes/Fees:

None, provided there is no onward sale involved

Note: Redemption typically incurs only minimal fees and does not require the 2% transfer registration fee applicable at the time of contract.

The processing fee, also known as the “entry fee,” is a one-time charge incurred at the start of the transaction. There are no additional fees throughout the contract period.

At Funding Societies, we charge generally lower than most other providers in the market.

It is considered regulated (“in-system”) if the transaction is registered at the Land Office, which is mandatory.

This is because the process involves a legal transfer of ownership under Section 491 of the Civil and Commercial Code.

A legitimate KaiFaak - Sale with right of redemption (ขายฝาก) must include:

• A formal KaiFaak - Sale with right of redemption (ขายฝาก) agreement
• Transfer of ownership (the name on the title deed changes)
• A clearly specified redemption period (not exceeding 10 years)

If such a contract is made privately without registration at the Land Office, it is considered unregulated (“off-system”).

• It is recommended to renew the contract at least 30 days before the expiration date.
  If even one day passes beyond the agreed date, the seller’s right to redeem is automatically forfeited, and no legal exceptions or court appeals will be accepted.
• To renew the contract:
• Both parties must be present at the Land Office
• A formal “KaiFaak - Sale with right of redemption (ขายฝาก) Extension Agreement” must be signed and registered

Fees for Contract Renewal

The contract renewal involves a registration fee of 1% of the KaiFaak - Sale with right of redemption (ขายฝาก) value (capped at 200,000 THB) and application/document fees of approximately 100–500 THB.