Transferring funds from overseas to a developer for condo purchase. What is the process?

[sikishrory]

I'm having trouble understanding the steps involved. Particularly in regards to the documents and who gets them and when and what they are.

I've heard of FET and "credit advice".

At the moment I know I need to transfer the cash to a developers local account. But I don't know if I need to contact the local bank first or get any documents prior or what the process is to get those documents after.

I have heard that should I want to move these funds back out of Thailand in the future then I would need to produce some kind of document from when they were originally transferred into Thailand.

I believe the developer may also require some of these documents for their records.

I asked the developer and my legal advisor but everyone is pretty chill about it and not really giving me the answers i'm looking for, which is basically the process step by step. 

It seems important and I don't want to screw it up.

[scubascuba3]

Don't do it, don't buy off plan, buy one already built, much much lower risk 

[OneMoreFarang]

We had a couple of threads like this in this forum, maybe search for them.

 

Important is that you send the funds from the foreign country in EUR or USD and not in THB!

The currency conversion has to happen in Thailand.

And when you transfer the money then write something like: for buying property in Thailand (or name of property, location, etc.)

Those are the important parts which you should make sure are done correctly because you can't change them anymore once they happened.

Then, after the funds arrive in Thailand, you can get the required documents.

 

Personally I would certainly not transfer money directly to the developer from outside of Thailand. I would always transfer it to my personal bank account. And then later from that account to the developer.

 

[1FinickyOne]

you need the bank swift code, name and # of the account - - then have your bank transfer the money... 

 

I think unless you have a special relationship w/your bank, you need to be in your home country to initiate the transfer...

 

maybe there are other ways but it is not complicated....

 

I hope you are sending the money to a well known development company... they can go bust... 

[rankric]

Strange query, needs information relating to a condo purchase and in the same query asking how to get the funds out of country.

 

Flipping fast maybe but completely unprepared. Enjoy.

[ThailandRyan]

18 minutes ago, rankric said:

Strange query, needs information relating to a condo purchase and in the same query asking how to get the funds out of country.

 

Flipping fast maybe but completely unprepared. Enjoy.

Why are you being so obtuse.  One day the money may need to he repatriated and the OP wants to ensure he goes about doing the right things when transferring the money into the country

[Etaoin Shrdlu]

I second OneMoreFarang's suggestion that you transfer funds into your own account and not the developer's.

 

I'm not sure how you would get the Thor Tor 3 (FET) document from the developer's bank. This is the form you will need in order to prove you brought the funds into Thailand and also to get them out if/when you want to repatriate the funds. Much easier to get this from your own bank.

 

Transfer the funds USD, Euro or other non-Thai currency and let your bank convert to baht. 

 

 

[sikishrory]

Thanks for the replies.

So I simply transfer the funds from foreign currency into the receiving account where it will be converted to baht. 

Then I need to visit the bank only after the funds have arrived and request an FET form and that's it. Done?

That's how I am understanding it?

There was another thing called credit advice that was mentioned. What is it? Do I need it?

I also thought it best to transfer the funds to my own account then disperse them as needed as it is a number of different payments. Yet my legal advisor said in this case it would be better to deposit directly. I feel like then I will be unable to get the FET which is needed. Also i'm not sure I will be able to see the converted figure anywhere as it's not my account.

I will ask the bank tomorrow.

 

[Sandboxer]

As mentioned:

 

Always into your own account.

 

Avoid off plan if at all possible UNLESS it is an extremely well known top developer with a PERFECT track record of completion and quality.

 

 

 

 

[omnipresent]

On 1/31/2023 at 8:19 AM, OneMoreFarang said:

Important is that you send the funds from the foreign country in EUR or USD and not in THB!

The currency conversion has to happen in Thailand.

Would transferring from your own Wise account be accepted?

 

I'm thinking if it originates from Wise as non-THB and you choose "International" tab (see screenshot below of Wise interface), it'd be OK, but it'd be good to hear the real experience of others who've actually done such a transfer from Wise for condo purchase.

 

[omnipresent]

On 1/31/2023 at 8:19 AM, OneMoreFarang said:

I would always transfer it to my personal bank account.

Would multiple THB bank accounts (instead of having all funds for purchase in a single account) be accepted?

There are a few reasons one may want to spread funds across different banks.

[treetops]

On 2/8/2023 at 6:30 PM, omnipresent said:

Would transferring from your own Wise account be accepted?

 

I'm thinking if it originates from Wise as non-THB and you choose "International" tab (see screenshot below of Wise interface), it'd be OK, but it'd be good to hear the real experience of others who've actually done such a transfer from Wise for condo purchase.

I've not done it personally but Wise works OK, only not for the reason you mention.  An overview of the process can be found here:

 

 

https://wise.com/help/articles/2932335/guide-to-thb-transfers

 

[Red Phoenix]

Yes, instead of transferring the funds straight from your Bank abroad to your Thai bank-account, do make use of WISE. It will save you a lot in bank-charges and exchange-rate conversion.  Also with WISE it is recommended - if you have time - to check the conversion rate regularly (it changes every minute) and do the transfer when it is 'high'.  Currently it is approx 36,- THB per Euro (but some months ago you got +38 THB, and during high season 3 weeks ago it had dropped to 35.5 THB). 

cheers and success!

[Dante99]

On 1/31/2023 at 3:19 PM, OneMoreFarang said:

Personally I would certainly not transfer money directly to the developer from outside of Thailand. I would always transfer it to my personal bank account. And then later from that account to the developer.

 

That sure makes good sense.

[Xanthe]

On 2/2/2023 at 9:53 PM, Sandboxer said:

Avoid off plan if at all possible UNLESS it is an extremely well known top developer with a PERFECT track record of completion and quality

Please name a couple top developers in Pattaya and their current ongoing project. Want to look around what's available. 

[phetphet]

On 1/31/2023 at 4:19 PM, Etaoin Shrdlu said:

I second OneMoreFarang's suggestion that you transfer funds into your own account and not the developer's.

 

I'm not sure how you would get the Thor Tor 3 (FET) document from the developer's bank. This is the form you will need in order to prove you brought the funds into Thailand and also to get them out if/when you want to repatriate the funds. Much easier to get this from your own bank.

 

Transfer the funds USD, Euro or other non-Thai currency and let your bank convert to baht. 

 

 

+ 1 for OneMoreFarang's suggestion. Send it to your own bank first. Then get the FET. Then send to developer.

 

If it is off plan. Certainly don't give the developer the lot up front. Rather staged payments at agreed levels of completion.

 

 

Lots of cowboys out here.

 

[bokningar]

After many years reading post at this forum, I had it that the process was very easy. Send money, buy property in wife/girlfriends name. Keep sending money until no more to send. Get kicked out and at best the ex buy you a ticket back home. And you get back home in the winter in flip-flops and shorts. But I might just have read the wrong treads and looked at the wrong documentaries on TV. Never tried it myself. And in all fairness a lot of guys seams to be happy with their investments.  

[Delight]

 It s not very efficient to transfer foreign currency to Thailand.. I would use Wise or equivalent to buy the Thai Baht.

If you use SWIFT then it is known to the bank that  the monies were imported.

Even less cost is not to use SWIFT but use the dropdown on the Wise website (when they ask to detail the reason for the transfer) and specify 'Long term stay in Thailand.

This will specify that the transfer has the code FTT.

This stands for ' Foreign Telegraph Transfer'

 

With that in place -and at the appropriate time the bank will issue the FET .

The typical stages are :

1) Transfer the Thai Baht to the developer.  Make sure that the building is not just a building-but a Condominium Juristic Person . The contract between the developer  and you will specify terms of payment. Nothing will happen until the developer has been paid. At that stage you will also have to pay one years common fee.

With this complete  you should be able to move in.

 

2) To do the transfer of the condominium title deed to your name-you will require the services of the  Condominium Juristic Manager (JPM). He/she will calculate the transfer fees-typically you have to pay- and you will have to provide the FET -obtained from your bank.

 

The developer cannot issue a FET. Only a bank can do this.

 

You will then receive your Condominium Title Deed with your name on the back-this will be written using Thai script.

You will also get a 2nd piece of paper detailing the appraised value of the condo. typically it is lower than the market price. The transfer fees are based on this lower price-about 6% of this lower price

[smutcakes]

When i did mine, i transferred straight to developer and they organized the FET form for me and handed it over to me on transfer.

[Delight]

8 hours ago, smutcakes said:

When i did mine, i transferred straight to developer and they organized the FET form for me and handed it over to me on transfer.

Would you still advise that approach?

[smutcakes]

8 hours ago, Delight said:

Would you still advise that approach?

Depends on the quality of developer. If its a well reputed developer listed on the stock exchange i dont see why not. If its a two bit operation started out of nowhere Thai or Farang with little or no track record then no.