07/09/2016
Kaifak (in Thai: #ขายฝาก) is a financial transaction which the seller sells a property unto the buyer which the seller also reserves an to repurchase it back at a predetermined price and within a set time frame. It is very similar to a loan and yet distinctively different in laws, risks and to both the lender (buyer ) or seller (borrower.) As in lending, in the event of defaults, the lender would have to hire legal teams to serve proper legal notices and initiate foreclosure process. In all foreclosure proceedings must be judicated. This means that it will take time, a lot of time. As the result, this supposedly simple process can potentially be a very prohitively expensive and lasting many years or forever, sometimes. As the borrower’s defenses, borrower could use all types of loopholes in the laws as defenses against foreclosing lender. Therefore money may not be as and simple as everyone think.
In a perfect world, if a property owner wants , he would borrow against his assets and gets money from lender right away. If borrower fails to repay the loan plus interest, lender can simply take his assets pledged. But with today’s sophistication of laws and loopholes, that simple process is no longer the best remedy in the event of default.
solves these problems. Since Kaifak is not a but a simple straight-sale, buyer(lender) is not required to do a thing if seller(borrower) chooses not to the property. This eliminates the foreclosure costs and time to take title for lender(buyer). For the seller(borrower), he has just an option but not an obligation to buy and he is off the hook and faces no other worries such as deficiency judgement in foreclosures. Therefore, Kaifak is sure -win for both parties
