Buying with instalments - how to prove overseas funding?

[hrrecruiter]

Hi All,

 

I'm a foreigner and have already purchased a 2nd hand property in Thailand,  I'm familiar with the steps. I am now considering purchasing a brand new property, the developer offers a payment plan in which you pay a deposit then several smaller installments until the final bigger payment when the property is ready.

 

When I paid cash for my 2nd hand it was easy, one transfer from my overseas bank to Thailand, went to the bank once, then got that document that is the proof my transfer was overseas. How do I go if I have to make, say over 20 payments? 

 

Thank you

 

 

[theguyfromanotherforum]

These pre-construction installments (which you pay once a month, right?) don't have to be from overseas. They can be from your or anybody's Thai bank account. It is only the lump sum at the end when you take over the possession that needs to come from overseas. 

[KittenKong]

1 hour ago, theguyfromanotherforum said:

These pre-construction installments (which you pay once a month, right?) don't have to be from overseas. They can be from your or anybody's Thai bank account. It is only the lump sum at the end when you take over the possession that needs to come from overseas. 

Not so. At the time of transfer he should provide FET(s) to at least the declared value of the unit. The developer may be able to facilitate this via some friendly banker but either way it has to be done.

 

The OP has a couple of simple options:

 

1. He can transfer all the money in one go to his bank account here, and then send the payments to the developer as needed from his Thai bank account using internet banking. His bank will provide one FET for that main transfer.

2. Or he can make several small transfers to his bank here and then send them on to the developer as needed. The bank will give him an FET (or other forex advice note) for each incoming transfer, and that will be acceptable for the Land Office.

 

I would never transfer money directly from my overseas account to a third party here. Always send it to your own Thai bank, exchange it, and then send it on from there as a local THB transfer.

[Peterw42]

OP, Check with the developer, I think you will find the Developers can generate the FET/FETs from their accounts showing you as the "sender" of the funds. The land office accepts an FET showing you as either the receiver or the sender of the funds. So very important to "send" the funds from an account in your name.

 

"To qualify for foreign condo ownership registration the foreign exchange transaction forms or other bank documents must show the foreign buyer's name either as the sender or receiver of the money from the overseas bank."

 

https://www.thaicontracts.com/articles/8-thai-law-isn-t-simple/72-fet-form-foreign-currency-exchange-form.html

[Peterw42]

8 hours ago, KittenKong said:

The developer may be able to facilitate this via some friendly banker but either way it has to be done.

That is usually the case, the developer can generate the FETs showing the purchaser as "sending" the funds.

If you find the blurb from the Land office it says, an FET showing funds into Thailand as either the sender or the receiver.

 

 

[Peterw42]

10 hours ago, theguyfromanotherforum said:

These pre-construction installments (which you pay once a month, right?) don't have to be from overseas. They can be from your or anybody's Thai bank account. It is only the lump sum at the end when you take over the possession that needs to come from overseas. 

Thats not the case, 100% of the funds need to be accounted for with FET, not just the final payment.

[KittenKong]

1 minute ago, Peterw42 said:

If you find the blurb from the Land office it says, an FET showing funds into Thailand as either the sender or the receiver.

That's interesting and not something I have come across before. Presumably that was decided on specifically to cover purchases of off-plan condos.

[ozmeldo]

On 11/30/2018 at 12:22 AM, KittenKong said:

Not so. At the time of transfer he should provide FET(s) to at least the declared value of the unit. The developer may be able to facilitate this via some friendly banker but either way it has to be done.

 

The OP has a couple of simple options:

 

1. He can transfer all the money in one go to his bank account here, and then send the payments to the developer as needed from his Thai bank account using internet banking. His bank will provide one FET for that main transfer.

2. Or he can make several small transfers to his bank here and then send them on to the developer as needed. The bank will give him an FET (or other forex advice note) for each incoming transfer, and that will be acceptable for the Land Office.

 

I would never transfer money directly from my overseas account to a third party here. Always send it to your own Thai bank, exchange it, and then send it on from there as a local THB transfer.

Are you stating to send it in X currency and have it convert to THB when it hits your bank 

 

OR

 

Have a X foreign currency account and send over the foreign currency, then exchange it?

 

Personally, I'm thinking in terms of second hand unit or one that has been completed. I'd never put deposits and pay installments.

 

Thanks for your respected opinion

[KittenKong]

8 minutes ago, ozmeldo said:

Are you stating to send it in X currency and have it convert to THB when it hits your bank

OR

Have a X foreign currency account and send over the foreign currency, then exchange it?

Whatever you do you must have the exchange performed here. That's the only really important part. Never send THB from abroad if you want to buy a condo with it.

 

Up to you whether you want to have an FCD (currency) account here or just a THB account, also up to you whether you send small amounts from time to time or just one big transfer. Obviously if you have a THB account and you send several small currency transfers to it then you will end up with several small FET notices to present to the Land Office, but that should not be a problem.

You would also need to consider what the various transfer, receipt and exchange fees would add up to depending on which way you do it.