{"id":1554,"date":"2025-12-09T13:10:09","date_gmt":"2025-12-09T06:10:09","guid":{"rendered":"https:\/\/www.pacharakritproperty.com\/?p=1554"},"modified":"2026-02-25T17:48:37","modified_gmt":"2026-02-25T10:48:37","slug":"what-is-the-difference-between-a-sale-with-right-of-redemption-and-a-mortgage","status":"publish","type":"post","link":"https:\/\/www.pacharakritproperty.com\/en\/what-is-the-difference-between-a-sale-with-right-of-redemption-and-a-mortgage\/","title":{"rendered":"What is the difference between a sale with right of redemption and a mortgage?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1554\" class=\"elementor elementor-1554 elementor-1143\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-18cf275 e-con-full e-flex e-con e-parent\" data-id=\"18cf275\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-cec788f e-flex e-con-boxed e-con e-parent\" data-id=\"cec788f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-dab8157 e-con-full e-flex e-con e-child\" data-id=\"dab8157\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-62f871b elementor-widget elementor-widget-heading\" data-id=\"62f871b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span>Tip<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ea8b58c elementor-widget__width-initial elementor-widget elementor-widget-heading\" data-id=\"ea8b58c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What is the difference between a sale with right of redemption and a mortgage?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c13532 elementor-widget__width-inherit elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"6c13532\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-680c1d2 elementor-widget elementor-widget-image\" data-id=\"680c1d2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"420\" src=\"https:\/\/www.pacharakritproperty.com\/wp-content\/uploads\/2025\/12\/IMG_5425-1024x537.jpeg\" class=\"attachment-large size-large wp-image-1553\" alt=\"\" srcset=\"https:\/\/www.pacharakritproperty.com\/wp-content\/uploads\/2025\/12\/IMG_5425-1024x537.jpeg 1024w, https:\/\/www.pacharakritproperty.com\/wp-content\/uploads\/2025\/12\/IMG_5425-300x157.jpeg 300w, https:\/\/www.pacharakritproperty.com\/wp-content\/uploads\/2025\/12\/IMG_5425-768x403.jpeg 768w, https:\/\/www.pacharakritproperty.com\/wp-content\/uploads\/2025\/12\/IMG_5425.jpeg 1400w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09ed9ae elementor-widget elementor-widget-text-editor\" data-id=\"09ed9ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><b><span dir=\"auto\">What is the difference between\u00a0<a>a sale<\/a>\u00a0with right of redemption and\u00a0<\/span><a><span dir=\"auto\">a mortgage ?<\/span><\/a><\/b><\/p><p><span dir=\"auto\">What are the differences between\u00a0&#8221;\u00a0<\/span><strong><span dir=\"auto\">sale with right of redemption<\/span><\/strong><span dir=\"auto\">\u00a0&#8221; and &#8221;\u00a0<\/span><strong><span dir=\"auto\">mortgage &#8220;?<\/span><\/strong><\/p><p><span dir=\"auto\">Many people have heard of &#8220;sale with right of redemption&#8221; and &#8220;mortgage,&#8221; but only a few truly understand the difference, as some transactions and operations are very similar. Today, Pacharakrit Property Co., Ltd., a leading real estate investment consulting firm specializing in sale with right of redemption and mortgages, will help everyone understand and differentiate between the two. Let&#8217;s take a look.<\/span><\/p><p><b><span dir=\"auto\">What is\u00a0<a>a sale with right of redemption ?<\/a><\/span><\/b><\/p><p><span dir=\"auto\">A sale with a right of redemption is a transaction where your property is used as collateral for a loan. The property serves as security for the repayment of the debt and interest within a specified period. The property immediately becomes the property of the &#8220;buyer&#8221; from the date of the contract. If the property cannot be redeemed within the agreed period, it automatically transfers ownership without the need for a court case. Importantly, all such transactions must be conducted in the presence of an official at the Land Department.<\/span><\/p><p><b><span dir=\"auto\">The procedures and conditions for a sale<\/span><\/b><span dir=\"auto\">\u00a0with right of redemption are as follows:<\/span><\/p><p><span dir=\"auto\">1. The buyer (broker, investor, individual, legal entity, or other non-bank organization) will have the property appraised and valued. On average, the price will be approximately 40-70% of the appraised value.<\/span><\/p><p><span dir=\"auto\">2. The buyer in a deposit scheme must set an interest rate that does not exceed 15% per annum, as permitted by law.<\/span><\/p><p><span dir=\"auto\">3. Once the price has been agreed upon, an appointment must be made to finalize the sale and repurchase agreement with the land department.<\/span><\/p><p><span dir=\"auto\">4. At the Land Department, once a sale with right of redemption contract is made, registered, and all fees are paid, the seller receives the agreed-upon amount. The buyer immediately acquires ownership of the land.<\/span><\/p><p><span dir=\"auto\">5. The redemption period must be at least 1 year and no more than 10 years.<\/span><\/p><p><b><span dir=\"auto\">The fees for a sale with right of redemption at the Land Department<\/span><\/b><span dir=\"auto\">\u00a0are as follows:<\/span><\/p><p><span dir=\"auto\">1. Transfer fee for sale with right of redemption: 2% of the appraised value of the land or the sale price.<\/span><\/p><p><span dir=\"auto\">2. Specific business tax of 3.3% (for cases where ownership has been held for less than 5 years or the name has been on the household registration for less than 1 year).<\/span><\/p><p><span dir=\"auto\">3. Stamp duty 0.5% (in cases where specific business tax is not payable)<\/span><\/p><p><span dir=\"auto\">4. Income tax.<\/span><\/p><p><b><span dir=\"auto\">The fees for loan redemption at the Land Department<\/span><\/b><span dir=\"auto\">\u00a0are as follows:<\/span><\/p><p><span dir=\"auto\">1. Redemption fee: 50 baht per plot.<\/span><\/p><p><span dir=\"auto\">2. Stamp duty 0.5%<\/span><\/p><p><span dir=\"auto\">3. Income tax.<\/span><\/p><p><b><span dir=\"auto\">Note:<\/span><\/b><span dir=\"auto\">\u00a0If redeeming real estate from a sale with right of redemption\u00a0<\/span><b><span dir=\"auto\">, **\u00a0<\/span><\/b><b><span dir=\"auto\">no specific business tax will be payable\u00a0<\/span><\/b><b><span dir=\"auto\">**.<\/span><\/b><\/p><p><b><a><span dir=\"auto\">What is a mortgage<\/span><\/a><span dir=\"auto\">\u00a0?<\/span><\/b><\/p><p><span dir=\"auto\">A mortgage is essentially a sale with a right of redemption. It involves using your property as collateral for a loan, with the property serving as security for the repayment of the debt and interest within a specified period. The property remains yours, not the mortgagee&#8217;s. If the mortgagor defaults on the loan, the mortgagee can only file a lawsuit in court to claim damages; they cannot immediately seize the property or land.<\/span><\/p><p><b><span dir=\"auto\">The procedures and conditions for a mortgage<\/span><\/b><span dir=\"auto\">\u00a0are as follows:<\/span><\/p><p><span dir=\"auto\">1. Compare the interest rates of different places.<\/span><\/p><p><span dir=\"auto\">2. Prepare the documents for the loan application.<\/span><\/p><p><span dir=\"auto\">3. The collateral will be appraised by a professional appraisal company (this step involves negotiating with the mortgagee regarding the location and method of the appraisal).<\/span><\/p><p><span dir=\"auto\">4. Notification of approved loan amount and interest rate (upon approval).<\/span><\/p><p><span dir=\"auto\">5. Loan documents and mortgage agreements must be completed at the Land Department.<\/span><\/p><p><b><span dir=\"auto\">The fees for mortgage registration at the Land Department<\/span><\/b><span dir=\"auto\">\u00a0are as follows:<\/span><\/p><p><span dir=\"auto\">1. Mortgage registration application fee: 5 baht per plot.<\/span><\/p><p><span dir=\"auto\">2. Mortgage registration fee: 1% of the loan amount, but not exceeding 200,000 baht.<\/span><\/p><p><span dir=\"auto\">3. Stamp duty (For every 2,000 baht of mortgage fee, a stamp duty of 1 baht will be charged, but not exceeding 10,000 baht).<\/span><\/p><p><b><span dir=\"auto\">The fees for loan redemption at the Land Department<\/span><\/b><span dir=\"auto\">\u00a0are as follows:<\/span><\/p><p><span dir=\"auto\">1. There are only service fees and charges of 100-200 baht per plot.<\/span><\/p><p><b><span dir=\"auto\">Summarize the differences between a sale with right of redemption and a mortgage.<\/span><\/b><\/p><table><tbody><tr><td><b><span dir=\"auto\">section<\/span><\/b><\/td><td><b><span dir=\"auto\">Sale with right of redemption<\/span><\/b><\/td><td><b><span dir=\"auto\">mortgage<\/span><\/b><\/td><\/tr><tr><td><span dir=\"auto\">fee<\/span><\/td><td><ul><li aria-level=\"1\"><span dir=\"auto\">For registration, the seller must pay a fee at a rate of 2% of the appraised value.<\/span><\/li><li aria-level=\"1\"><span dir=\"auto\">Withholding tax on income is calculated based on the land&#8217;s appraised value.<\/span><\/li><li aria-level=\"1\"><span dir=\"auto\">A specific business tax of 3.3% will be applied to the appraised value of the land or the sale with right of redemption price, whichever is higher (applicable only to sales with right of redemption that meet the specified criteria).<\/span><\/li><li aria-level=\"1\"><span dir=\"auto\">The stamp duty is 0.5% of the appraised value of the land or the sale with right of redemption price, whichever is higher. However, if the specific business tax has already been paid, the stamp duty will be waived.<\/span><\/li><\/ul><\/td><td><ul><li aria-level=\"1\"><span dir=\"auto\">For registration, the mortgagor must pay a fee at a rate of 1% of the mortgage amount.<\/span><\/li><\/ul><\/td><\/tr><tr><td><span dir=\"auto\">Guarantee<\/span><\/td><td><span dir=\"auto\">In a conditional sale agreement, the seller is obligated to immediately transfer ownership of the property to the buyer.<\/span><\/td><td><span dir=\"auto\">The mortgagor is not required to transfer ownership of the property to the buyer under a conditional sale agreement.<\/span><\/td><\/tr><tr><td><span dir=\"auto\">Right to use property.<\/span><\/td><td><span dir=\"auto\">The seller has no right to use the property sold under a right of redemption until the entire property is redeemed.<\/span><\/td><td><span dir=\"auto\">The mortgagor has the right to continue using the property.<\/span><\/td><\/tr><tr><td><span dir=\"auto\">Redemption period<\/span><\/td><td><p><span dir=\"auto\">The redemption period for property begins from the time of the sale with right of redemption, as defined by law for both types of property.<\/span><\/p><ul><li aria-level=\"1\"><span dir=\"auto\">Real estate less than 10 years old.<\/span><\/li><li aria-level=\"1\"><span dir=\"auto\">Movable property, not older than 3 years.<\/span><\/li><\/ul><\/td><td><span dir=\"auto\">Mortgage laws do not specify a time limit in the contract; the mortgagor can repay the debt to the mortgagee until the full amount is paid.<\/span><\/td><\/tr><\/tbody><\/table><p><span dir=\"auto\">So, from the information we&#8217;ve compiled, you can see that sale with right of redemption and mortgage have many similarities, but also many differences. Therefore, readers should carefully study the information before entering into any legal transaction. Having a consultant or expert to provide advice and guidance will make legal transactions smoother and easier to understand.<\/span><\/p><p><a><span dir=\"auto\">Pacharakrit Property Co., Ltd.<\/span><\/a><span dir=\"auto\">\u00a0is a leading real estate investment consulting firm specializing in property sales, mortgages, and loan applications. We are trusted by\u00a0numerous organizations and individuals. If you are interested in having us be a part of your project, providing trusted advice and support, please contact us.<\/span><\/p><p><b><span dir=\"auto\">Note:\u00a0<\/span><\/b><b><span dir=\"auto\">The criteria for consideration are as determined by the company.<\/span><\/b><\/p><p><b><span dir=\"auto\">For more information, please inquire.<\/span><\/b><\/p><p><span dir=\"auto\">Tel:\u00a0<\/span><a><span dir=\"auto\">02-096-2962<\/span><\/a><\/p><p><span dir=\"auto\">Line: @Pacharakrit.ppt or click\u00a0<\/span><a href=\"https:\/\/lin.ee\/xqcU1Y1\"><span dir=\"auto\">https:\/\/lin.ee\/xqcU1Y1<\/span><\/a><\/p><p><span dir=\"auto\">E-mail : Pacharakrit.property@gmail.com<\/span><\/p><p><b><span dir=\"auto\">Thank you for the information from:<\/span><\/b><span dir=\"auto\">\u00a0www.tb.co.th and www.landprothailand.com<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is the difference between\u00a0a sale\u00a0with right of redemption and\u00a0a mortgage ? What are the differences between\u00a0&#8221;\u00a0sale with right of redemption\u00a0&#8221; and &#8221;\u00a0mortgage &#8220;? Many people have heard of &#8220;sale with right of redemption&#8221; and &#8220;mortgage,&#8221; but only a few truly understand the difference, as some transactions and operations are very similar. Today, Pacharakrit Property [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-1554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tip"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the difference between a sale with right of redemption and a mortgage? - pacharakrit<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pacharakritproperty.com\/en\/what-is-the-difference-between-a-sale-with-right-of-redemption-and-a-mortgage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the difference between a sale with right of redemption and a mortgage? - pacharakrit\" \/>\n<meta property=\"og:description\" content=\"What is the difference between\u00a0a sale\u00a0with right of redemption and\u00a0a mortgage ? What are the differences between\u00a0&#8221;\u00a0sale with right of redemption\u00a0&#8221; and &#8221;\u00a0mortgage &#8220;? Many people have heard of &#8220;sale with right of redemption&#8221; and &#8220;mortgage,&#8221; but only a few truly understand the difference, as some transactions and operations are very similar. 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What are the differences between\u00a0&#8221;\u00a0sale with right of redemption\u00a0&#8221; and &#8221;\u00a0mortgage &#8220;? Many people have heard of &#8220;sale with right of redemption&#8221; and &#8220;mortgage,&#8221; but only a few truly understand the difference, as some transactions and operations are very similar. 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