What is Sale with Right of Redemption?
Sale with Right of Redemption
Khai Fak is a long-established legal structure under Thai law where a property owner sells an asset with a clearly defined right to repurchase it within an agreed period.
Ownership rights, redemption terms, and timelines are registered at the Land Office, providing legal certainty to all parties.
Why we choose Khai Fak:
- Clearly defined redemption rights and timelines
- Transparent legal structure registered at the Land Office
- No ambiguity on ownership or enforcement
- Asset-backed downside protection
- Faster execution than traditional bank financing
Khai Fak allows property owners to access liquidity while preserving a defined right to reclaim their asset — without relying on speculative assumptions or informal agreements.
Khai Fak vs Bank Financing
A Practical Alternative When Timing Matters
Khai Fak
- Designed for asset owners who require liquidity when banks are unable to assist
- Focuses on property quality rather than credit history
- No monthly repayment obligations
- Clearly defined redemption amount and timeline
- Legally registered structure with transparent outcomes
Traditional Bank Financing
- Heavily dependent on credit approval and income documentation
- Often unavailable during restructuring or temporary downturns
- Monthly repayment pressure can restrict business recovery
- Lengthy approval processes and inflexible covenants
Risk Management Approach
Every transaction includes:
- Conservative effective LTV
- Valuation discount from market price
- Clear redemption terms
- Pre-defined exit planning
Legal documentation is reviewed before execution. We prioritise clarity over complexity.
Risk Disclosure
- • Khai Fak transactions involve legal and financial risks
- • Failure to redeem within the agreed period may result in ownership transfer under Thai law
- • Markham Capital does not guarantee restructuring, extension, or future liquidity events