Condo purchase SNA<deleted>U - money not sent properly, unable to re-send

[Leelas]

My family is currently attempting to purchase a condominium in Bangkok. The individuals in question are my parents (who are buying), my wife and I (who are living in it), and my brother (who's helping with stuff on the US side). 

 

My dad sent a lump sum of money in mid-June without doing any research about the requirements of buying property in Bangkok, and without consulting with us first. The money landed in my wife's bank account, where it's still sitting. We settled on a condo to buy last month, and attempted to get an FET on the money my dad sent. It turns out that he did not send it from his own account, but from a trust fund that he manages which does not have his name on it. Therefore, he cannot use it to purchase property in his name. 

 

My question is, how do we get that money out of the country and back in again? My wife just spoke to our bank and they say that she cannot send it to my parents or an account in their name, because they're not related by blood. She can send it to an account in my name because I am related to them, but if I try to send it to them the government will block it because according to my income I should not be able to send this amount of money. 

 

Is there any way out of this? Preferably something that can be done in about a week or two? Or, are we basically screwed here? We signed a sales contract last week before this problem had come to light, and have to close the deal by mid-January.

 

Thanks for any advice you can offer.

[The Fat Controller]

On that timescale, it sounds like your wife is going to be buying the condo !

[smutcakes]

Just to note to get the FET the money needs to be transferred in your foreign currency and then converted to baht in Thailand, rather than purchasing baht in your home country and transferring baht.

Can you just hold onto this money and start the process again?

[scubascuba3]

Just to note to get the FET the money needs to be transferred in your foreign currency and then converted to baht in Thailand, rather than purchasing baht in your home country and transferring baht.
Can you just hold onto this money and start the process again?

Are you sure it has to be foreign currency being transferred rather than thai baht? So transferwise for example couldn't be used.

[The Fat Controller]

To get a FET document, the funds MUST come in as foreign currency.

 

Also, for the OP's father to buy the condo in his name, it would have to be sent to a Thai bank account in his father's name.

 

[wirat69]

I assume FET = Foreign Exchange Transaction Form..... which I have never shown at time of purchase of any of my 5 condominiums (or should that be condominia?)

 

I understood that money sent in to Thailand by a foreign entity could be returned, so why can the money not be returned to the Original Remitter, the Trust Fund, and then transferred to an account in the name of the purchaser in US before being re-remitted to Thailand??

[Langsuan Man]

21 minutes ago, wirat69 said:

I assume FET = Foreign Exchange Transaction Form..... which I have never shown at time of purchase of any of my 5 condominiums (or should that be condominia?)

Good luck getting your condominia money back out of the country without the FET for each one

 

The OP's problem is the money was not sent by an individual but by a "trust fund" that he (the father) manages and the rules preventing the money from being sent back out is to prevent money laundering by non identified entities 

[Shibuya1]

It is easy to get that letter through most real eastate agents or lawyers. The one on Soi Six can do it. It cost me about 12000 Baht to get one for 3.4 million. I've bought at least 3 condo this way.

[teutonian]

I see this situation a lot.  

 

you Might have to send the money back to the trust and then I would recommend you transfer the funds directly to the developer. 

 

If the buyer is a private person you will need your bank cooperation to issue the FET.  

 

I have helped others expatriating funds (some people have no need for FETs). The transaction cost for receiving USD overseas in exchange for THB in Thailand is 10 percent above the bank exchange rate of the day.  

 

 

[AlQaholic]

40 minutes ago, Shibuya1 said:

It is easy to get that letter through most real eastate agents or lawyers. The one on Soi Six can do it. It cost me about 12000 Baht to get one for 3.4 million. I've bought at least 3 condo this way.

Yes, everyone knows where soi Six is.

[Peterw42]

OP, I would imagine your wife could use a company like tranferwise to send the money back out. Its a local transfer to transferwise's Thai account, then they transfer to their own US account, then a local transfer in the US. Its not your wife exporting the money its transferwise. 

[4evermaat]

TransferWise only allow inbound transfers i.e. Foreign currency >> THB. Not the other way around.

Sent from my ASUS_Z010D using Thailand Forum - Thaivisa mobile app

[scuba2day]

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 

Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

[12DrinkMore]

1 hour ago, Shibuya1 said:

It is easy to get that letter through most real eastate agents or lawyers. The one on Soi Six can do it. It cost me about 12000 Baht to get one for 3.4 million. I've bought at least 3 condo this way.

 

I have never noticed a lawyer on Soi 6, must be all the other distractions. 

[smutcakes]

53 minutes ago, scuba2day said:

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 

Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

 

It would be extremely beneficial if you were correct, but i don't believe you are, unless perhaps there are specific regulation differences for specific countries. I have not seen any mention of it in the news, or within the industry and it would be quite  substantial amendment to the current situation i am sure it would garner significant news reporting.

 

Are you buying in a Thai company name or as a foreigner under foreign ownership which has required the FET?

[Minnehaha]

2 hours ago, Langsuan Man said:

Good luck getting your condominia money back out of the country without the FET for each one

 

The OP's problem is the money was not sent by an individual but by a "trust fund" that he (the father) manages and the rules preventing the money from being sent back out is to prevent money laundering by non identified entities 

It is for many reasons.  The Bank of Thailand counts its foreign exchange very carefully.  This is the biggest reason.  They are the one demanding to see FEC from the bank and bank account before you can remit payment abroad.  

[ToddinChonburi]

I just was at Bangkok bank and yes they now issue a certificate of transfer for land office.

[ToddinChonburi]

I just was at Bangkok bank and yes they now issue a certificate of transfer for land office.

[ToddinChonburi]

The question that I could not get answered was can I use a series of Bank transfers over a period of time or does it have to be one lump sum.

[scubascuba3]

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 
Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

So this certificate of transfer of inbound funds is issued irrespective of currency? I.e can transfer THB or GBP

[smutcakes]

32 minutes ago, scubascuba3 said:

2 hours ago, scuba2day said:

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 
Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

So this certificate of transfer of inbound funds is issued irrespective of currency? I.e can transfer THB or GBP

For me i dont really care about the FET or not, my main concern is the ability to transfer money to Baht and hold it overseas for future purposes to counter possible potential currency fluctuations. I just find it incredibly difficult to believe they have done away with the whole FET and not one news channel/webpage has picked up on it.

[scubascuba3]

For me i dont really care about the FET or not, my main concern is the ability to transfer money to Baht and hold it overseas for future purposes to counter possible potential currency fluctuations. I just find it incredibly difficult to believe they have done away with the whole FET and not one news channel/webpage has picked up on it.

You may be right although I'm not surprised, you get guff reported on here and important stuff like that is missed

[pipeflaw]

Have your wife go to Phnom Penh and open an account at a bank (she will need a 6 month visa to do so which will take a couple of days to get with an agent-don't try to do it yourself). If the money is still in USD, leave it in USD.  If it is in baht, try to get the Thai bank to change it to USD.  If they won't change it, then leave it.  Check out exchange rates before all currency exchanges.  After she has all necessary paperwork and gets her visa, she goes to PP, gets her 6 month visa, and opens the Cambo bank account.  I would suggest using Advance Bank of Asia Ltd (ABA Bank) it is privately owned and solid.  She should open an account in USD and which allows easy transferability of funds.  She should take some additional funds with her so that after the transfer she has at least USD500 left in the account after she sends the money back.  She should send the money into a new joint account you and her have at a different Thai bank than used before.  Then both of you can be on the chanote for the condo to be purchased, assuming it is foreign quota.

[scuba2day]

3 hours ago, smutcakes said:

 

It would be extremely beneficial if you were correct, but i don't believe you are, unless perhaps there are specific regulation differences for specific countries. I have not seen any mention of it in the news, or within the industry and it would be quite  substantial amendment to the current situation i am sure it would garner significant news reporting.

 

Are you buying in a Thai company name or as a foreigner under foreign ownership which has required the FET?

Foreign ownership. Not a major amendment or change, just replaced one form with another.

Edited December 19, 2017 by scuba2day

[scuba2day]

2 hours ago, scubascuba3 said:

4 hours ago, scuba2day said:

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 
Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

So this certificate of transfer of inbound funds is issued irrespective of currency? I.e can transfer THB or GBP

No, that is not what I said. The Baht is the currency of the country so you either need to transfer in Baht or transfer in some currency and convert it to Baht. There is no change in this regard. I was just saying the form is now different. 

[MW72]

I know nothing about the laws concerning property purchase in Thailand but could your wife not purchase the property in her name then sell it to your parents for a token amount of say THB 1,000? Maybe this would raise red flags but worth a thought. I am sure someone on here could point out what's wrong with that suggestion.

[smutcakes]

30 minutes ago, scuba2day said:

No, that is not what I said. The Baht is the currency of the country so you either need to transfer in Baht or transfer in some currency and convert it to Baht. There is no change in this regard. I was just saying the form is now different. 

Well currently you cannot transfer in Baht, the whole aspect of the SET is you remit foreign currency from abroad and it is exchanged to THB within Thailand. So if you are saying you can now convert to baht abroad, and transfer baht into Thailand and still get the FET or the equivalent of the FET it is a considerable change. (for the better)

[scubascuba3]

No, that is not what I said. The Baht is the currency of the country so you either need to transfer in Baht or transfer in some currency and convert it to Baht. There is no change in this regard. I was just saying the form is now different. 

Ok. Post #3 suggested it was something different "money needs to be transferred in your foreign currency and then converted to baht in Thailand, rather than purchasing baht in your home country and transferring baht"

It gets confusing when posters contradict each other

[smutcakes]

6 minutes ago, scubascuba3 said:

Ok. Post #3 suggested it was something different "money needs to be transferred in your foreign currency and then converted to baht in Thailand, rather than purchasing baht in your home country and transferring baht"

It gets confusing when posters contradict each other

In needs to be transferred into Thailand IN FOREIGN CURRENCY. Check any available information. It has not changed. You cannot get an FET transferring BAHT from abroad.

[simoh1490]

5 hours ago, scuba2day said:

First words of advice. Don't take anything you read on these forums as being correct or current. Some knowledgeable posts here however many are complete nonsense.  In this case, I would talk with the funds transfer department at the main branch of Bangkok Bank (on the second floor) about your situation. I found them to be knowledgeable and they can communicate in English. 

Just as an FYI, you can certainly transfer Thai Baht from outside the country for purchase of a condo. I have a Thai Baht account in Hong Kong which is why I made the enquiries. In the past, there was a different form for inbound funds transfers in Thai baht. However, there has been a Bank of Thailand change recently (I purchased a condo six weeks ago) and there is no longer a FET form. The bank now issues a certificate of inbound funds transfer for all inbound transfers which is needed at the land office.

The FET does still exist but is only issued if specifically requested, the LO will however accept a bank foreign currency exchange note in lieu of it.

 

As a foreigner in Thailand, you cannot buy a condominium in your own name, in the foreign 49% quota, using imported THB, you can use such funds to buy a 51% quota condominium however. If as a foreigner you want to buy a 49% unit in your own name you are required to show that foreign currency was brought into Thailand, THB will not qualify in that respect.

 

BTW there has not been any rule change whatsoever, it has always been the case that a FET equivalent could be used and that FET's were only issued on request, even 16 years ago.

Edited December 19, 2017 by simoh1490