Why Compare Costs Before Deciding?
The same property can result in very different financial outcomes depending on whether it is sold early or left to enforcement. Understanding total costs upfront helps minimize losses and improve debt resolution.
Costs of Selling Before Litigation
Typical costs include:
✅ Brokerage fees (payable upon successful sale)
✅ Transfer fees and taxes (often shared)
✅ Marketing/valuation costs (per service terms)
❌ No court fees
❌ No litigation attorney fees
❌ No accrued interest from prolonged proceedings
This stage offers the best chance to achieve market pricing.
Costs of Enforcement and Foreclosure
Once enforcement begins through the Legal Execution Department, costs commonly include:
❌ Court fees
❌ Legal fees
❌ Accrued interest during proceedings
❌ Enforcement administration fees
❌ Auction and notice costs
❌ Below-market sale prices
Debts may still remain after the sale.
Cost Overview Summary
Pre-Litigation Sale
Lower total costs
Control over price and timing
Better chance of full debt settlement
Enforcement
Higher total costs
No control
Risk of residual debt
Item | Selling Before Litigation | Legal Enforcement (Thai Law) |
|---|---|---|
Auction / Forced Sale Fees | 0% | 2–3% of sale price (GCC) |
Amount Paid to Creditors (Execution) | 0% | 1% of amount seized/attached (GCC) |
Bid Competition Fee | 0% | 1% of highest bid price (GCC) |
Interest During Legal Process | No ongoing interest | Continues accruing (no fixed %) |
Likely Auction Price vs Market | — | 10–30% below market if no bidders at early rounds |
Example Calculation (Property Price: 1,000,000 THB)
Selling Before Litigation vs Legal Enforcement
Assumptions (Approx.)
Market price: 1,000,000 THB
Enforcement sale price: ~20% below market
Auction fee: 2%
Payment-to-creditor fee: 1%
Interest & legal costs during process: ~5%
Comparison Table (THB)
Item | Sell Before Litigation | Legal Enforcement |
|---|---|---|
Sale Price | 1,000,000 | 800,000 |
Auction / Sale Fee | 0 | 16,000 |
Payment to Creditor Fee | 0 | 8,000 |
Interest & Legal Costs | 0 | 50,000 |
Net Proceeds (before transfer taxes) | 1,000,000 | 726,000 |
Value Lost | — | ≈274,000 THB |
Summary: Enforcement can reduce net value by approximately 27–30%.
This example clearly shows that selling a property before litigation helps preserve significantly more asset value compared to legal enforcement.
Why Auctions Reduce Overall Costs
Pre-litigation auctions encourage transparent competition, reducing negotiation friction and pushing prices toward true market value.
Property Auction House manages valuation, marketing, auctions, and closing coordination.
FAQ
Q: Are enforcement costs higher than selling early?
A: Generally yes, due to added legal and administrative fees.
Q: Is there a chance to retain surplus funds by selling early?
A: Yes, because prices are closer to market with lower costs.
Q: Does foreclosure always clear the debt?
A: Not always; remaining balances may persist.
Q: Do auctions really achieve better pricing?
A: Competition often improves price outcomes.
