FX letter for condo purchase issues

[sikishrory]

I'm going out of my mind.

I've transferred the first payment to the developer for the purchase of a condo.

I included the exact payment instruction message that was requested in the contract.

Meaning in the reference feild I have included "for the purchase of condo xxxx in xxxxx condominium project".

After this my lawyer has gone to the bank to ask about getting the required Letter from the bank. Then he has come back to me saying the bank wants the full address somehow attached to the transaction (it doesn't fit in the reference field obviously).

I contacted my overseas bank they are confused about this and never heard of anyone attaching a whole paragraph description to a transaction.

When i mention this to lawyer he just says they (overseas bank) need to do it even though i clearly tell him that's not an option.

So now I have already paid quote alot and have more payments due soon.

In my brain worst case scenario is I lose all the money I've paid already because the developer has it and i can't get the required Letter.

Really concerned but anytime i talk to lawyer or developer everyone seems pretty chilled like there's not even an issue.

Starting to lose my patience a bit.

So looking for any solution or  someone familiar with this issue

[ezzra]

Without knowing where the money was transferred to and what bank are you referring to, local or overseas, the least you can do now is get a written confirmation from the developer that they indeed received the money and with that you can sleep soundly.

[sikishrory]

I forgot to mention I transferred from my overseas bank into my Thai account then to the developer account.

[userabcd]

Maybe try escalate the matter in the local bank.

 

Consider another lawyer.

 

I trust you have a written receipt acknowledgment from the developer that the payment has been made/transferred.

 

Should you not obtain an FET before transferring money to the developer?

 

You have made a foreign transaction to your local bank account, for whatever reason you specify to get your money back out again they should issue an FET.

 

this is what should be done, so if the local bank is causing problems in violation of BOT rules then escalate to someone in BOT.

How to obtain a Foreign Exchange Transaction Form (FET)?

While transferring money into Thailand for the purchase of real estate may seem like a mundane and straightforward process, foreign buyers need to follow a specific set of procedures.

In order to obtain an FET Form that complies with all the Bank of Thailand’s regulations and Land Office requirements, foreign buyers will need to ensure the following:

1. The full purchase price of the condo is remitted in foreign currency. It is important to note that the foreign currency remittance must be converted by the receiving Thai bank.

2. The transfer should mention the foreign purchaser’s name either as the sender, receiver or at least in the purpose of transfer.

3. Mention purpose of transfer in the bank application form of the remittance transfer.

Here is an example of a purpose of transfer note:

“Money Transfer for the Purchase of [Unit Number], on [Floor], in Condominium [Full Condo Name] on behalf of [Mr. /Ms. Full Passport Name]”

 

Edited February 18, 2023 by userabcd

[sikishrory]

1 minute ago, userabcd said:

Maybe try escalate the matter in the local bank.

 

You have made a foreign transaction to your local bank account, for whatever reason they should issue an FET.

 

this is what should be done:

How to obtain a Foreign Exchange Transaction Form (FET)?

While transferring money into Thailand for the purchase of real estate may seem like a mundane and straightforward process, foreign buyers need to follow a specific set of procedures.

In order to obtain an FET Form that complies with all the Bank of Thailand’s regulations and Land Office requirements, foreign buyers will need to ensure the following:

1. The full purchase price of the condo is remitted in foreign currency. It is important to note that the foreign currency remittance must be converted by the receiving Thai bank.

2. The transfer should mention the foreign purchaser’s name either as the sender, receiver or at least in the purpose of transfer.

3. Mention purpose of transfer in the bank application form of the remittance transfer.

Here is an example of a purpose of transfer note:

“Money Transfer for the Purchase of [Unit Number], on [Floor], in Condominium [Full Condo Name] on behalf of [Mr. /Ms. Full Passport Name]”

Yeh and that's exactly what I have done. I've included a very similar reference to your point 3. Basically the same except missing the address. For example soi, street, mooban, province etc. This is the same "payment instruction message" as requested by the developer and is written in the contract that i need to include that same message. Which I've done.

However my lawyer has contacted scb to enquire about what's needed to get this letter as he says it varies bank to bank which i can understand. However he's got back to me saying they want the complete residential address included which my overseas bank can't do and it doesn't fit in the reference field.

Also it would be deviating from the message the contract says i need to follow exactly.

So at the moment:

My lawyer just refers me to my overseas bank.

The developer - not really in their job description to sort out people's individual issues.

Scb - i want to go and talk to them myself but can't get to the branch for a week due to work. This is probably the logical next step.

I may get a different answer from them to the lawyer I'm hoping but if they really insist on a full address then I have no idea what the next step would be.

I could try to "escalate" as you suggest which sounds nice in theory but that just means calling the manager over and talking to them instead. I'm not sure how i could escalate any higher than that.

 

 

[userabcd]

The banks follow BOT regulations, I don't know why they should exceed that..

 

Also I would think the developer/land office should have knowledge and experience of foreign buyers requiring the FET to purchase the property. They perhaps should not be accepting money before an FET is in place for a foreiger purchase.

 

"I'm not sure how i could escalate any higher than that. "

 

Maybe inquire at the banks head office.

Edited February 18, 2023 by userabcd

[OneMoreFarang]

I purchased an condominium from a previous owner about one year ago. When I transferred the money to Thailand I was pretty sure which unit I would buy, but I was not 100% sure. This is why I wrote for the transfer "purchase of a condominium in Bangkok", not building name or anything like that. And that was perfectly fine, no problem.

 

Maybe you are missing one step: When we went to the land office to transfer the unit to my name I had to bring a letter from my bank in Thailand. On that letter from my Thai bank were all the details about the unit which I bought. The bank prepared that letter after I gave them all the details of the unit which I bought. The Thai bank prepared that letter after they received my money from overseas. 

 

It seems this letter has a standard format. It is a full page with lots of text.

Maybe ask the seller for a sample of the letter which they expect and then go with that sample to your bank so that they can prepare that for you.

 

Good luck!

 

[norbra]

Being an fx contract it would have been delivered to SCB INTERNATIONAL CENTRE for processing,so I would chase them for further advice O27222222

[omnipresent]

On 2/18/2023 at 6:38 AM, OneMoreFarang said:

This is why I wrote for the transfer "purchase of a condominium in Bangkok", not building name or anything like that. And that was perfectly fine, no problem.

I'm also in the process of transferring funds to buy property without knowing exactly which building. I've been making transfers via Wise which lets us select "Property purchase" in a dropdown list.

 

Though I've heard you may not even need to write the exact reason, as long as the bank receives funds as "International funds transfer". When you've found a place and are ready to pay, you can visit the bank to have them create a letter based on those past International funds transfers. The letter would show details of the property and that the money came from abroad. To those who have experience in the process, is my thinking correct?

[OneMoreFarang]

9 minutes ago, omnipresent said:

I'm also in the process of transferring funds to buy property without knowing exactly which building. I've been making transfers via Wise which lets us select "Property purchase" in a dropdown list.

 

Though I've heard you may not even need to write the exact reason, as long as the bank receives funds as "International funds transfer". When you've found a place and are ready to pay, you can visit the bank to have them create a letter based on those past International funds transfers. The letter would show details of the property and that the money came from abroad. To those who have experience in the process, is my thinking correct?

I can't confirm or not. I can tell what I did:

Transfer from Europe in EUR my Thai bank with info like "to purchase a condominium in Bangkok"

 

After I agreed to buy a condominium, I visited my bank to write a letter with all the details. This was done based on a sample letter. It looked not like a form but like a one page written document.

I used this document at the land office when the condominium was transferred to my name.

 

[Mike Teavee]

14 minutes ago, omnipresent said:

I'm also in the process of transferring funds to buy property without knowing exactly which building

Same here & (maybe naively) I just assumed that I only needed to show that the funds came from overseas so have been using the “Funds For Long Term Living in Thailand” reason with Wise (am pretty sure “Property Purchase” wasn’t an option when I 1st started using them but at that time had no interest in buying anything so probably wouldn’t have noticed it if there were).
 

End of the day of it doesn’t work that way I’ll just send the money to the UK (or Singapore depending on FX rates) & transfer it back with the correct information.

 

There no longer seems to be restrictions on sending money outside of Thailand but I have proof that I brought it in from overseas if there were.  .
 

[treetops]

On 4/3/2023 at 9:47 AM, omnipresent said:

I'm also in the process of transferring funds to buy property without knowing exactly which building. I've been making transfers via Wise which lets us select "Property purchase" in a dropdown list.

Note that these will only show up as international transfers in a couple of Thai banks.  There's a way to prove it at others but it's a bit convoluted.  Details are on Wise' website.

[CandiceTT]

On 2/18/2023 at 12:54 PM, userabcd said:

Maybe try escalate the matter in the local bank.

 

Consider another lawyer.

 

I trust you have a written receipt acknowledgment from the developer that the payment has been made/transferred.

 

Should you not obtain an FET before transferring money to the developer?

 

You have made a foreign transaction to your local bank account, for whatever reason you specify to get your money back out again they should issue an FET.

 

this is what should be done, so if the local bank is causing problems in violation of BOT rules then escalate to someone in BOT.

How to obtain a Foreign Exchange Transaction Form (FET)?

While transferring money into Thailand for the purchase of real estate may seem like a mundane and straightforward process, foreign buyers need to follow a specific set of procedures.

In order to obtain an FET Form that complies with all the Bank of Thailand’s regulations and Land Office requirements, foreign buyers will need to ensure the following:

1. The full purchase price of the condo is remitted in foreign currency. It is important to note that the foreign currency remittance must be converted by the receiving Thai bank.

2. The transfer should mention the foreign purchaser’s name either as the sender, receiver or at least in the purpose of transfer.

3. Mention purpose of transfer in the bank application form of the remittance transfer.

Here is an example of a purpose of transfer note:

“Money Transfer for the Purchase of [Unit Number], on [Floor], in Condominium [Full Condo Name] on behalf of [Mr. /Ms. Full Passport Name]”

 

As to "must be converted by the receiving Thai bank......"

What is the reason behind the policy?

 

my bank issued the confirmation letter but check the second one "withdrawn money from the baht account of a person residing outside the country"

 

now the seller's agent told me it won't be accepted by the land office but my bank said it will....

I'm confusing.....