This might occur in the West very often but does not in Thailand. Firstly a pledge is where one give another movable property in exchange for a service or performance which needs to be rendered. As an example I will give my car to you which I own on condition that you paint my apartment block. A good way of thinking of a pledge is to think of bartering in modern times. There are rules to a pledge as it is in the Thai Civil Code Section 747. These are the rules for a pledge and how it is registered in Thailand as it is a contract.
The registration fees for the pledge are as follows:
1. The pledge registration fee is 2% of the value of the transaction.
2. There is stamp duty of 0.5% and/or a business tax of 3.3%
3. Other fees such as witness’s fees and evaluation fees.
The pledge cancellation fees are as follows:
1. The pledge application fees are 55 baht.
2. Other fees such as witness’s fees.
If you are considering a pledge or lease agreement or any property or bartering agreement then speak to one of our lawyer in Thailand either in Bangkok, Pattaya, Hua Hin, Samui, Chiang Mai or Phuket about drafting a pledge agreement in Thailand.