Buying Condo In Pattaya. How Long Does The Papperwork Take?

[abril371]

Hi everyone,

A friend of mine was recommended to buy a condo in a new built house in Pattaya. Then he asked me if i was intrested to share the condo with him. I said yes. Now, we have a few things to clear out first and i was hoping some expert could help us!

1- Let say we come down to pattaya on monday morning ( this monday 4 June! ), see the condo and decide we buy it! Just how long time is needed for the papperwork? We can be there maximum 2 working days! Is it enough??? We have to leave Thailand tuesday night.

2- How do we do as forigners? Register a company that owns the condo and we own 50% each of the company? Do we need to open bank accounts? I was said we have to pay an amount on buying first and then pay 45 month/15000 bath and at the end of that time pay whatever is left.

3- Do both buyers need to be present at the moment of registration/buying?

Kind regards

Abril371

[twix38]

Can't help with it all, but a little advice.

Don't buy in a hurry

ONLY buy a condo that can be owned ina foreigner's name (49% of building) This means the Company scheme is irrelevant and redundant as you will own legally in your own name(s).

Guess this maybe too late from the dates, but good luck

[nitram]

If you are only lodging a deposit on the condo then two days will be OK.....BUT..... Your problem will be that only 49% of the total condo units can be owned by a foreigner and after the 49% is taken up then those that are left must go via the "sham" company route (which is not recommended these days).

As a foreigner you do not need to have a company but can buy it in joint names.... if you can register your condo at the Lands Department in time.

Developers tend to advertise that a foreigners can legally own this condo...and then proceed to try and sell 70% to 80% to foreigners. The developer is not responsible if you cannot register your foreign ownership in time.

You will not have to open a bank account but you must be able to prove that the funds for purchasing came from your account overseas (with an "Foreign Exchange Transaction Form" issued by the bank).

These forms are only issued if you send more than $20,000 US in funds.... so if you are paying monthly installments, then you need to make sure that you have to pay in advance so that you qualify for the FETF from the bank. Without the FETF then you will not be able to have the condo in your name.

I suggest that you go and see a lawyer to obtain all the latest information regarding purchasing a condo.

You also need to understand signing "Power of Attorneys" so that someone can act on your behalf at the Lands Department (other than the developer)

Do NOT rush into this deal without knowing what is required.

[Tyke]

If you are only lodging a deposit on the condo then two days will be OK.....BUT..... Your problem will be that only 49% of the total condo units can be owned by a foreigner and after the 49% is taken up then those that are left must go via the "sham" company route (which is not recommended these days).

As a foreigner you do not need to have a company but can buy it in joint names.... if you can register your condo at the Lands Department in time.

Developers tend to advertise that a foreigners can legally own this condo...and then proceed to try and sell 70% to 80% to foreigners. The developer is not responsible if you cannot register your foreign ownership in time.

You will not have to open a bank account but you must be able to prove that the funds for purchasing came from your account overseas (with an "Foreign Exchange Transaction Form" issued by the bank).

These forms are only issued if you send more than $20,000 US in funds.... so if you are paying monthly installments, then you need to make sure that you have to pay in advance so that you qualify for the FETF from the bank. Without the FETF then you will not be able to have the condo in your name.

I suggest that you go and see a lawyer to obtain all the latest information regarding purchasing a condo.

You also need to understand signing "Power of Attorneys" so that someone can act on your behalf at the Lands Department (other than the developer)

Do NOT rush into this deal without knowing what is required.

Nitram,

about the FET form - are u saying that if all the funds for buying a condo are not transferred from abroad at the same time, even if the total amount eventually transferred to buy a single condo is greater than $US20,000, then a FET form will not be issued for the full amount? For example, I am buying a condo for $US60,000. I have already transferred the equivalent of $US16000 to pay for installments on the off-plan condo up to September (at that time I was not issued with a FET, the bank saying I will get one when I purchase the condo, I assume on registration day - a first question is - would I have got a FET then if the total amount transferred at that time was at least $US20,000 - or are FETs only issued at the time of condo registration?). In September. I will transfer a further $US45000 to pay the balance. My second question is - are you saying that I will eventually only get a FET for the $US45000, in which case I couldn't register it, or will the bank add the 2 sums up and give me a FET for the full amount transferred in 2 lots?

[nitram]

I do not want to mislead you, but I was told that the amount transferred each time had to be equal or more than $20,000 US otherwise a FET form will not be issued. If you have many deposits and they are all under $20,000....This did NOT qualify to have a FETF issued. But as long as your final payment is OVER the $20,000US then everything will be fine. Just make sure that you inform your overseas bank that you put a statement on the transfer form to state the reason for the transfer. e.g. Purchase of condo at "such and such address" for each transfer.

If you are paying in installments....then send 2 or 3 payments at a time to qualify.

When you go to the bank in Thailand and ask for an FET form, it is usaully issued within a couple of days of the transfer at the Lands Department, as it is only valid for a few days. Although, take into account that some banks ask for at least 1 week to get the form ready. I have bought a few condos here and each time it seems to vary.

When I bought my condos, the deposit was always in cash (no FETF) but the balance was over $20,000US and therefore I had the FETF from the bank for the Lands Department.

Edited June 3, 2007 by nitram

[Tyke]

I do not want to mislead you, but I was told that the amount transferred each time had to be equal or more than $20,000 US otherwise a FET form will not be issued. If you have many deposits and they are all under $20,000....This did NOT qualify to have a FETF issued. But as long as your final payment is OVER the $20,000US then everything will be fine. Just make sure that you inform your overseas bank that you put a statement on the transfer form to state the reason for the transfer. e.g. Purchase of condo at "such and such address" for each transfer.

If you are paying in installments....then send 2 or 3 payments at a time to qualify.

When you go to the bank in Thailand and ask for an FET form, it is usaully issued within a couple of days of the transfer at the Lands Department, as it is only valid for a few days. Although, take into account that some banks ask for at least 1 week to get the form ready. I have bought a few condos here and each time it seems to vary.

When I bought my condos, the deposit was always in cash (no FETF) but the balance was over $20,000US and therefore I had the FETF from the bank for the Lands Department.

Nitram,

thx for this, but if only the balance of greater than $US20,000 has been transferred with an accompanying FET issued how can u register the condo - doesn't a FET need to be taken to the registry office for the FULL amount, not just the balance of payments?

[nitram]

I've never asked the Lands department whether they have checked the full amount. When I go to the Lands Department the "purchase price" has always been stated as being the same as the valuation price (less tax that way). Since I have always paid the deposit by cash, my balance amount has always been more than the valuation price. If questioned, I will say that the extra money was sent from overseas for new furniture or renovations. But I have never been asked.

But if you are making partial payments each month, then I would borrow 800,000 Baht (or equivalent amount from your home country) and deposit into your Thai bank account and then transfer each monthly balance to meet your requirements. This way you will meet the FETF requirements.

If this is too difficult or not feasible for you, then without the valid FETF you may have to go down the "company ownership" way. But please, I am not a lawyer, I give my advice based on my experience in good faith. I would suggest that you double check with a legal representative or talk with the bank.

[Asianrider]

If you sell the condo within 5 years is there sales tax to pay ? how much? is this normally borne by the seller or the buyer ?

[nitram]

If you sell the condo within 5 years is there sales tax to pay ? how much? is this normally borne by the seller or the buyer ?

There is a 2% Stamp Duty and a 3.3% Business Tax plus a Withholding Tax based on the value of the property and the length of time it is owned. Property tax is usually paid on what the property is valued at (By the Lands Department) and not the sale value (Less tax that way)

Its a complicated formula. Either go to this web site to work out the tax owed Tax Formula

or to this site for an Explanation of Fees

As for who pays..... its negotiable. Sometimes its better if the buyer does NOT agree to 50/50 split as he ends up paying for the business tax and withholding tax (which should be bourne by the Seller)

[Tyke]

If you are only lodging a deposit on the condo then two days will be OK.....BUT..... Your problem will be that only 49% of the total condo units can be owned by a foreigner and after the 49% is taken up then those that are left must go via the "sham" company route (which is not recommended these days).

As a foreigner you do not need to have a company but can buy it in joint names.... if you can register your condo at the Lands Department in time.

Developers tend to advertise that a foreigners can legally own this condo...and then proceed to try and sell 70% to 80% to foreigners. The developer is not responsible if you cannot register your foreign ownership in time.

You will not have to open a bank account but you must be able to prove that the funds for purchasing came from your account overseas (with an "Foreign Exchange Transaction Form" issued by the bank).

These forms are only issued if you send more than $20,000 US in funds.... so if you are paying monthly installments, then you need to make sure that you have to pay in advance so that you qualify for the FETF from the bank. Without the FETF then you will not be able to have the condo in your name.

I suggest that you go and see a lawyer to obtain all the latest information regarding purchasing a condo.

You also need to understand signing "Power of Attorneys" so that someone can act on your behalf at the Lands Department (other than the developer)

Do NOT rush into this deal without knowing what is required.

Hi,

I have heard recently from an estate agent that an appointment has to be made at the land office and this could take up to 4 weeks. Now this is in Bangkok - is it also true (if at all) in Pattaya?

[spacebass]

If you are only lodging a deposit on the condo then two days will be OK.....BUT..... Your problem will be that only 49% of the total condo units can be owned by a foreigner and after the 49% is taken up then those that are left must go via the "sham" company route (which is not recommended these days).

As a foreigner you do not need to have a company but can buy it in joint names.... if you can register your condo at the Lands Department in time.

Developers tend to advertise that a foreigners can legally own this condo...and then proceed to try and sell 70% to 80% to foreigners. The developer is not responsible if you cannot register your foreign ownership in time.

You will not have to open a bank account but you must be able to prove that the funds for purchasing came from your account overseas (with an "Foreign Exchange Transaction Form" issued by the bank).

These forms are only issued if you send more than $20,000 US in funds.... so if you are paying monthly installments, then you need to make sure that you have to pay in advance so that you qualify for the FETF from the bank. Without the FETF then you will not be able to have the condo in your name.

I suggest that you go and see a lawyer to obtain all the latest information regarding purchasing a condo.

You also need to understand signing "Power of Attorneys" so that someone can act on your behalf at the Lands Department (other than the developer)

Do NOT rush into this deal without knowing what is required.

Hi,

I have heard recently from an estate agent that an appointment has to be made at the land office and this could take up to 4 weeks. Now this is in Bangkok - is it also true (if at all) in Pattaya?

1) In Pattaya you roll up,as early as possible (8.30 opening time) preferably not on a Monday or Friday,and you could be out by midday. No appointment.

2) You can get a letter from the bank that details your importation of foreign exchange, (standard practice for under 20kUS) this will get the condo in your name, but may be less helpful in assisting you reexporting your money one day, than a fetf. It is true you cannot apply multiple fetf to one transaction.

Edited June 8, 2007 by spacebass

[Asianrider]

Nitram thanks for this useful information