Buying Condo Foreign Exchange Transaction Form (FET) question

[bear9]

Hi,

 

Im in the process of looking at some condos to buy. I started doing some research online on what would be required to purchase and found out i need a foreign exchange transaction form (FET) showing that the funds were coming in from abroad to buy the condo.

 

However in my case the funds will not be coming from abroad as the money came from within Thailand. So how is it possible to get the fet form from the bank if i already have the money in thailand which didnt come from overseas.

 

So i visited a condo to take a look at the rooms they were selling and i started asking the sales agent about foreign exchange transaction form.  Sales agent had no idea what i was talking about even when i pulled up google showing her what it was so couldnt get an answer on how that would be completed.

 

Same situation in a well known shopping mall started asking the people within the mall about the fet form and she had no idea what it was and was looking down on me as if i was asking a strange question. As she just kept repeating no you just buy the condo despite me showing her multiple times that i need this form.

 

Contacted a well known thailand condo developer company to ask them but they have been ignoring my question.

 

Went into my Thailand bank account branch to ask my bank how i could get the form from them and the person in bank had never heard of such a form despite me showing them again what it was on google.

 

So between banks and real estate companies its proving very difficult to get an answer on this. I dont want to leave a deposit or any money down incase i find out later that i need this form.

 

Does anyone have any insight into this it would be much appreciated. My money is not coming from overseas to buy the condo the money is the money came from within Thailand would that make it more difficult?

 

Thanks

[scubascuba3]

The letter shows that the money came from abroad, yours didn't so bank can't show it, maybe there's corrupt agents and banks who can do it for you, money talks usually.

 

You could put it in Thai company name but that's illegal using Thai proxies so don't be tempted 

Edited Saturday at 10:34 PM by scubascuba3

[Peterw42]

You definitely need an FET, very odd that you have found agent and bank that know nothing about it.

To obtain an FET, you will probably need to send the money out of Thailand then back in. Some banks can help with this process as they send it to an outside Thailand office of their bank for minimal fees and exchange. Also some developers can sometimes produce an FET when you buy from them, without the funds coming from outside Thailand.

 

You can use any money you have brought into Thailand to produce the FET, if you have  previously brought in money to buy a car, funds for visa etc.

Edited Saturday at 10:41 PM by Peterw42

[bear9]

19 minutes ago, Peterw42 said:

You definitely need an FET, very odd that you have found agent and bank that know nothing about it.

To obtain an FET, you will probably need to send the money out of Thailand then back in. Some banks can help with this process as they send it to an outside Thailand office of their bank for minimal fees and exchange. Also some developers can sometimes produce an FET when you buy from them, without the funds coming from outside Thailand.

 

You can use any money you have brought into Thailand to produce the FET, if you have  previously brought in money to buy a car, funds for visa etc.

 

Thank you thats useful to know that a bank or developer could help with this by sending it outside then back.

 

Also if a developer is showing a certain price for a condo is everything negotiable in terms of price to bargain it down?

[OneMoreFarang]

I bought a condo, and I didn't know the official name of this document.

I, and many others, just know that you need proof that the money has to come from abroad.

 

So maybe when you ask people, just ask them if you have cash in Thailand if that is good enough to buy. How about that document that the money has to come from outside of Thailand. 

 

As far as I know you actually need that document at the land department. So maybe the best place to ask is the land department.

[OneMoreFarang]

21 minutes ago, Peterw42 said:

You can use any money you have brought into Thailand

I am pretty sure the money has to arrive in Thailand in foreign currency like USD, EUR, etc. - not in THB.

[Mike Lister]

As you have been told, the funds to buy the property must originate from overseas, yours didn't hence your problem in obtaining an FET. In fact, you don't need an FET but you must have a bank letter stating that the funds originated from overseas, an FET is the official form but is not always required.....the bank letter however is required,

 

You may be able to pay a fee to to your bank to have them bed and breakfast those funds which would allow them to be seen as new money received from overseas, I have heard of people doing this in the past. Go talk to your bank and see if they can help.

[Peterw42]

10 minutes ago, bear9 said:

 

Thank you thats useful to know that a bank or developer could help with this by sending it outside then back.

 

Also if a developer is showing a certain price for a condo is everything negotiable in terms of price to bargain it down?

Any price is negotiable, they may not move by much, but you can try. Its harder to negotiate with a developer as its often installments or progress payments as the place gets built.

[newnative]

     Good answers already regarding the FET document.  This used to be called a Tor Tor 3 so some of the people you encountered might just know it by that term.  I would not put much stock into anything a sales clerk at a mall kiosk tells me.  

     I would recommend first deciding what area you want to be in and then research what is available.  Do some thinking about what amenities you would like the condo project to have to fit your lifestyle.  Be aware that many big projects sporting lots of units in the 30 sqm range will likely have  multiple units purchased by investors that will be doing Airbnb short-term rentals, even though rentals of less than 30 days are illegal in Thailand. 

    If your project having the feeling of a hotel rather than a residence is no problem for you, not a concern then.  If that could be a concern, you might consider a project with fewer, larger units.  These projects do not as easily lend themselves to short-term rentals and investors have a harder time buying multiple units and operating an illegal boutique hotel within the condo project.

     Whether buying a condo from a new project or a resale, you certainly can negotiate.  If you show up without a real estate agent, you should at least get a 3% reduction in the price that would be paid to the agent for bringing you, the buyer, to the seller. 

     I would always recommend buying in foreign quota.  The condo will be in your name, it will be more valuable and easier to sell should you ever decide to sell, and you avoid all the yearly paperwork involved in owning a condo in company name.   Take your time, educate yourself about what is available in the area you want, and good luck.

[MrJ]

going price in Pattaya is about 1% from the purchase price for this document (many property agents working with banks and/or money exchanges)

Edited Sunday at 03:57 AM by MrJ

[bear9]

Thanks for the replies from everyone this is some useful information for me going forward

 

Kind Regards

[Seeall]

On 6/16/2024 at 5:13 AM, bear9 said:

Hi,

 

Im in the process of looking at some condos to buy. I started doing some research online on what would be required to purchase and found out i need a foreign exchange transaction form (FET) showing that the funds were coming in from abroad to buy the condo.

 

However in my case the funds will not be coming from abroad as the money came from within Thailand. So how is it possible to get the fet form from the bank if i already have the money in thailand which didnt come from overseas.

 

So i visited a condo to take a look at the rooms they were selling and i started asking the sales agent about foreign exchange transaction form.  Sales agent had no idea what i was talking about even when i pulled up google showing her what it was so couldnt get an answer on how that would be completed.

 

Same situation in a well known shopping mall started asking the people within the mall about the fet form and she had no idea what it was and was looking down on me as if i was asking a strange question. As she just kept repeating no you just buy the condo despite me showing her multiple times that i need this form.

 

Contacted a well known thailand condo developer company to ask them but they have been ignoring my question.

 

Went into my Thailand bank account branch to ask my bank how i could get the form from them and the person in bank had never heard of such a form despite me showing them again what it was on google.

 

So between banks and real estate companies its proving very difficult to get an answer on this. I dont want to leave a deposit or any money down incase i find out later that i need this form.

 

Does anyone have any insight into this it would be much appreciated. My money is not coming from overseas to buy the condo the money is the money came from within Thailand would that make it more difficult?

 

Thanks

Tit most of the agents and condo sellers I just backpackers trying to get some commission they don't want to know anything that I want to do anything they just want to sell the fastest possible totally unprofessional.. the form is an interesting subject they opted years ago had to be over 50k USD get the form anyhow since then there are various banks that will allow you to send out to million with without it just have to find the right manager in the right day and the right bank typical Thailand good luck let us know how you go and by the way add up other money in coming methods to go pay with the bank and get your best price there are other tricks to which I won't go into here.. have fun I did

 

On 6/16/2024 at 5:37 AM, Peterw42 said:

You definitely need an FET, very odd that you have found agent and bank that know nothing about it.

To obtain an FET, you will probably need to send the money out of Thailand then back in. Some banks can help with this process as they send it to an outside Thailand office of their bank for minimal fees and exchange. Also some developers can sometimes produce an FET when you buy from them, without the funds coming from outside Thailand.

 

You can use any money you have brought into Thailand to produce the FET, if you have  previously brought in money to buy a car, funds for visa etc.

Notice under 50K USD 

 

[sikishrory]

I was told the money needs to come from outside even if you have it in Thailand.

They all might know nothing about it but I think the developer is as interested in the form as you.

In my case the developer of course requested that the payments coming from outside Thailand be transferred into their account.

In this case I think they are the ones who get the form. That seemed a bit weird to me as if ever you want to send that money out of Thailand in the future you are supposed to have that form to show where the money came from originally.

So I just transferred to my local account then from there to the developer.

I remember also asking about this in SCB and the "manager" had no idea what I was talking about. It's quite incredible.

My lawyer made enquiries with them over the phone and in typical Thai style they made it sound quite convoluted and not without some possible difficulties.

I highly recommend you to just do it via email. I have had probably about 5 of these forms now from 2 different banks and doing it via email they do it by the actual rules and not some whacky requirements made up in branch based on how they feel about you. You also don't need to try and educate the staff about what it is. They just do it.

The document is referred to in different terminlogy that also confuses things. "Credit Advice". "FRC Inward Transfer". FET.

You can't just email them and say send it. You need to call them on the phone and then tell them to email it to you.

It should clearly state that the money is for buying a condo in the instruction message that you add when you do the transfer.

Also - Unrelated but I would be sure to check the capital of the company selling condos. I used a lawyer to conduct due diligence (recommended) and he found out of date chanotes and some of the companies standing in shopping malls selling only have 4 million baht to their name.

[john donson]

On 6/16/2024 at 5:13 AM, bear9 said:

Hi,

 

Im in the process of looking at some condos to buy. I started doing some research online on what would be required to purchase and found out i need a foreign exchange transaction form (FET) showing that the funds were coming in from abroad to buy the condo.

 

However in my case the funds will not be coming from abroad as the money came from within Thailand. So how is it possible to get the fet form from the bank if i already have the money in thailand which didnt come from overseas.

 

So i visited a condo to take a look at the rooms they were selling and i started asking the sales agent about foreign exchange transaction form.  Sales agent had no idea what i was talking about even when i pulled up google showing her what it was so couldnt get an answer on how that would be completed.

 

Same situation in a well known shopping mall started asking the people within the mall about the fet form and she had no idea what it was and was looking down on me as if i was asking a strange question. As she just kept repeating no you just buy the condo despite me showing her multiple times that i need this form.

 

Contacted a well known thailand condo developer company to ask them but they have been ignoring my question.

 

Went into my Thailand bank account branch to ask my bank how i could get the form from them and the person in bank had never heard of such a form despite me showing them again what it was on google.

 

So between banks and real estate companies its proving very difficult to get an answer on this. I dont want to leave a deposit or any money down incase i find out later that i need this form.

 

Does anyone have any insight into this it would be much appreciated. My money is not coming from overseas to buy the condo the money is the money came from within Thailand would that make it more difficult?

 

Thanks

 

my money was in thailand since 2009, converted FCD euro account to THB in 2011

 

KASIKORN bank, also wanted to buy a condo, pretend the money never existed, as I closed my FCD in 2011...  even I have an original FET transaction paper that they 'bought' my euros and converted and deposited on my KASIKORN Account

 

transaction is too old , more than 10 years, so go F yourself and sent it back

 

new tax rule now and I will not be paying 35% extra tax on my savings to bounce them out and in...

 

rent it is...

 

good luck... if you have residency, no problem apparently...

 

 

[john donson]

22 hours ago, MrJ said:

going price in Pattaya is about 1% from the purchase price for this document (many property agents working with banks and/or money exchanges)

 

please more info, pm welcome

[MrJ]

On 6/17/2024 at 9:50 AM, john donson said:

 

please more info, pm welcome

can't tell names....check the big money exchanger (yellow/black) and ask for manager....most real estate agent can assist as well

[Sigmund]

Don't buy...rent. Far to much corruption and hassles if you sell and want the money sent back abroad.