If you want to use land to raise funds, the key difference between mortgaging and selling land is who holds the ownership after registration and how to pay to retain or reclaim the land.
Mortgaging land: Ownership remains with the owner.
The land serves as collateral for debt repayment, and the owner retains ownership. However, if there is a default, the creditor may proceed with foreclosure according to the law.
Selling land: Ownership transfers upon registration.
The buyer receives ownership, while the seller has the right to redeem according to the terms and duration specified in the contract.
3 things to check before signing.
The net amount to be received after all expenses are deducted.
The amount to be paid and the due date according to the contract.
The source of funds to repay the debt or redeem, along with a backup plan in case the funds are delayed.
Read more.
Selling or mortgaging again when the title deed is still mortgaged.
Options when unable to find funds to redeem the sale.
Udon Thani Provincial Land Office — Land Mortgaging.
Udon Thani Provincial Land Office — Land Selling.
