No Need For Funds To Come From Abroad For Condo Purchase If...?

[Magdalen]

Hi, am considering buying a condo in Bangkok. My funds are in Thailand and not my home country. The selling agent, who I do basically

trust though am not completely convinced about her competency, has told me that since this is a 'sale before transfer' (it is a new

development) and that the seller has just paid a downpayment and their name does not yet appear on any title deed. there is NO need

for funds to come from overseas. She calls this 'kai dao' (forgive me if this is transliterated incorrectly) and the regulation that funds

have to come from overseas does not apply. 

 

Anyone heard of this or had a similar experience?  TIA

[Peterw42]

It doesnt sound entirely correct, however, developers do have the ability to create the FET from their account. Somehow they create a document that the land office accepts as funds from overseas.

Just get it written into any sales contract, sale is null and void, full refund if not foreign title.

 

I would be more concerned as it appears you are buying an existing contract. There are 1,000s of condos for sale, no need to complicate things by taking over someone elses contract etc. Insist on a straight sale, less complicated. Also the purchase price wont include later costs when it does transfer to you, the actual transfer fee, the one off sinking fund payment, electricity meter and connection (maybe even a developer charge for foriegn title) etc etc. 

 

People fipping contracts are cheaper for a reason.

 

 

[Pravda]

Sounds legit

[vukovar77]

Do not do it.Down payment on this way is dangerous in Thailand.All of middle person want only fee from You and profit.There is so much unsold condos here and no need to rush.It will be much cheaper soon.

[USNret]

2 hours ago, vukovar77 said:

It will be much cheaper soon.

This has been my mantra for the last 12 years, as I keep waiting for that "inevitable" crash.  Naturally, I will then swoop in to grab some condos cheap.  Still waiting!  The condo market in Thailand overall, and BKK in particular, is horrifically dysfunctional.  In no other economy would prices remain boosted as high as they are, with this obvious oversupply of product.

[Ketyo]

I bought from someone who had paid a deposit pre-transfer - but had to get the funds sent from overseas to get the FETs. The selling agent (developer) came with me to the Thai clearing bank to help me get the FETs. I need to use the FETs for my visa. Immigration dept check the FETs thoroughly and in fact had a 20 minute chat with the clearing bank to make sure they were genuine the first time I applied for the visa.

 

Maybe it's true that there is some way the agent can make FETs for you but it doesn't sound entirely convincing and I am not familiar with it. The written rules on FET seem quite strict.. e.g. the funds are supposed to come from an overseas account in your name to a Thai account in your name (I have had problems explaining this to immigration before because I used a cheaper intermediary rather than my bank to transfer the funds).....

 

I would double check with someone you trust. A lawyer perhaps or another agent.

[sfokevin]

50 minutes ago, USNret said:

In no other economy would prices remain boosted as high as they are, with this obvious oversupply of product.

You obviously do not follow the Chinese real estate market... 

[newnative]

    Taking over a contract can sometimes have advantages.  My partner and I have done it twice.  In both cases we were able to secure condo contracts relatively inexpensively in really excellent locations in the projects.  The two condos ended up being our two most profitable condo flips to date.  Both buildings were popular to begin with but we had the added advantage of the superior locations in the projects. 

     So, can be a good thing.  In both our cases, we were dealing with established builders--Sansiri and SC Asset--and they assisted greatly with the change in buyers and everything went smoothly.  We only buy off-plan--whether as initial buyers or by taking over a contract--with well-known, large, established builders.  One of the condos was bought in Thai quota so we didn't need the FET but we did need it for the other one.  

[YT3k72Em]

You do not need foreign currency yet because you are not actually owning it yet.

You are buying the contract to buy once the condo is finished.  Kai dao = selling the "down" or the downpayment. The previous buyer is selling his contract and downpayment to you. (ie., he's flipping for a profit without having to come up with the full amount of the purchase price)

 

When the condo is finished and a title deed is ready to be issued you will need to show the FET for the full purchase price, including whatever downpayment you have already paid.

[Aussieroaming]

I bought a brand new apartment in Bangkok with money already in my Thai bank (joint) account and had to retrospectively show proof of origin as the money had been deposited over a number of years. I felt this was beneficial, so that it might ease removal of that money O/S in the future if needed and if I sell.

[watcharacters]

On 3/18/2019 at 10:43 AM, YT3k72Em said:

The previous buyer is selling his contract and downpayment to you. (ie., he's flipping for a profit without having to come up with the full amount of the purchase price)

 

 

Is this commonly done in Thai real estate?  

 

[KittenKong]

6 minutes ago, watcharacters said:

Is this commonly done in Thai real estate? 

Yes. It is common for units to be sold at a big discount at launch, presumably so that the developer can appear to have a hit on his hands. List prices then rise, though all prices are always very negotiable.

 

Smoke and mirrors.

 

You also have the people who paid a deposit at launch but dont have the funds to complete. They want to sell too.