Boonperm Nakdam said today that new legislation that was recently introduced by the government separates land purchase agreements from civil and commercial codes and provides clear guidelines to ensure fairness.
The new law requires the lender to inform the borrower when an agreement is close to its deadline; otherwise, the agreement will automatically be postponed for six months. The repurchase amount must not exceed the principal, plus 15% in interest. In the event of the death of either party, the agreement can be inherited by the person’s heir. Furthermore, the borrower will retain the right to repurchase the land up to one year following the agreement’s deadline.
Boonperm says once implemented, the law will eliminate unfair repurchase agreements, which currently affect around 100,000 borrowers or one million rai per year.