Procedures To Obtain A 'foreign Exchange Transaction Form"?

[mcgbilly]

I am hopeing someone can help me with this. I am intending to buy a small condo, (500,000-750,000baht) in November or December. This condo is for a temporary place to live while accumulateing money to build a house next year. My Thai wife and I don't need a larger or more expensive condo just for the year it will take to finish saving enough money to build. We may keep it as a place to stay when in Bangkok occasionally, or sell or rent it out it after that. Unless I am mistaken, I think there is a time limit I must keep it anyway. I am a newbie here and look to you more experienced folks for any help you may be able to provide.

My questions:

1; What do I need to do to obtain the "Foreign Exchange Transaction Form" (Tor Tor 3, I think) in order to satisfy any Gov. Agencys, or Banks etc. to conduct the purchase of a condo in my name, and do it as hassle free as possible?

2;Can I transfer the funds in 2 seperate transactions?

3; Am I correct to assume there is a minimum limit of $20,000 USD to obtain the document?

4; When and how do I obtain the document? When the funds are transfered into my Bangkok bank? Should I contact the bank in Thailand before transfering funds?

5; What happens to any remaining funds left after the purchase? Free for me to access?

6; Is there any further info that I may not be aware of concerning requirements to purchase a Condo?

7; Is Bank of Bangkok a good bank for this type of transaction, or is there a bank someone might recommend?

8; How can I assure the seller is correct and sincere that I as a foreigner can legally purchase the condo and be within the 49% foriegn ownership requirement?

I am both new and a small fry in the sense of the amounts of money and business transactions some of you folks conduct, but hopefully someone will assist me. Thanks for your time.

[brewsterbudgen]

I would be interested to read any answers to these questions and can offer up my (limited) experience so far.

I have put down a 100,000 baht deposit on a condo at Sukhumvit Plus (Phra Khanong). I am a teacher and luckily I was able to use the services of a lawyer from a firm where I teach (free of charge!). The lawyer checked the foreigner allocation and made a number of changes to the Transfer Contract before I signed it.

I am now waiting to make the final 3.8m baht payment due before the end of next month. The funds will have to be transferred from the UK and I'm still uncertain on the best way to do this. I have previously used a Lloyds-TSB International Moneymover form to transfer smaller amounts to my Bangkok Bank account. This is simple and relatively cheap although requires someone in the UK to complete the forms. Is there a better way to transfer 3.8m baht?

And then, like the OP, I'm uncertain on how to get the Foreign Exchange Transaction. I assume it comes from the receiving bank, but is it just a case of taking in the contract for the condo purchase and they verify and match the amounts?

I hope I haven't hi-jacked the original post but I think my query is related.

Thanks

Edited August 24, 2007 by brewsterbudgen

[Maestro]

Mcgbilly:

1. Ask your Thai bank for the Foreign Exchang transaction form (FETF). It they don’t know what it is, print an example from this link.

2. You can request a FETF for any inward remittance of not less than the equivalent of USD 20,000. If this amount is reached only by adding up two separate remittances, you cannot get the FETF.

3. Yes.

4. You ask your Thai bank for it after the money has been credited to your account.

5. Yes.

6. When remitting money for a condo purchase, indicate the payment purpose on the payment order form in the field for a message for the beneficiary, indicating the name of the condo building and the number or other designation of the condo unit. When obtaining the FETF, make sure the purpose is clearly stated on the form.

--

Maestro

[mcgbilly]

Thanks Maestro!

Good information. I do not quite understand when this comes into play though:

6. When remitting money for a condo purchase, indicate the payment purpose on the payment order form in the field for a message for the beneficiary, indicating the name of the condo building and the number or other designation of the condo unit. When obtaining the FETF, make sure the purpose is clearly stated on the form.

Is this payment order form something that needs to be completed at he time I pay the seller, or will I need to complete it at the Thai bank when I go for the FETF?

Thanks again Maestro!

Heres the last thing:

I still am not sure how to be certain that I am under the 49% of legal foriegn ownership allowed to own units in a building. I have read somewhere that a seller may not know or care, or give a rats A---, as when it is discovered and time to be dealt with it will be me that will be in the wrong for not being carefull enough to find out, leaving me with no recourse and I could lose the condo because I am above the 49% cap. Am I being paranoid? I hope that I am just doing my homework well here.

Thanks for your patience and help everyone.

[taxexile]

am both new and a small fry in the sense of the amounts of money and business transactions some of you folks conduct, but hopefully someone will assist me. Thanks for your time.

you must also ensure ( you will be given the option on the bank transaction form , or stipulate it when doing the transaction by phone or via the net) that the money is transferred in pounds sterling or us dollars etc. to thailand and the exchange to baht is done here by the receiving bank , dont have your bank exchange your currency into baht in the uk/usa etc and send it over as baht.

1. you will get a much better exchange rate if the exchange is done by the receiving thai bank.

and

2. you may have difficulty getting a FETF because you havent actually transferred foreign currency into thailand , you have transferred baht.

Edited August 24, 2007 by taxexile

[asiaexpat]

I am hopeing someone can help me with this. I am intending to buy a small condo, (500,000-750,000baht) in November or December. This condo is for a temporary place to live while accumulateing money to build a house next year. My Thai wife and I don't need a larger or more expensive condo just for the year it will take to finish saving enough money to build. We may keep it as a place to stay when in Bangkok occasionally, or sell or rent it out it after that. Unless I am mistaken, I think there is a time limit I must keep it anyway. I am a newbie here and look to you more experienced folks for any help you may be able to provide.

My questions:

1; What do I need to do to obtain the "Foreign Exchange Transaction Form" (Tor Tor 3, I think) in order to satisfy any Gov. Agencys, or Banks etc. to conduct the purchase of a condo in my name, and do it as hassle free as possible?

2;Can I transfer the funds in 2 seperate transactions?

3; Am I correct to assume there is a minimum limit of $20,000 USD to obtain the document?

4; When and how do I obtain the document? When the funds are transfered into my Bangkok bank? Should I contact the bank in Thailand before transfering funds?

5; What happens to any remaining funds left after the purchase? Free for me to access?

6; Is there any further info that I may not be aware of concerning requirements to purchase a Condo?

7; Is Bank of Bangkok a good bank for this type of transaction, or is there a bank someone might recommend?

8; How can I assure the seller is correct and sincere that I as a foreigner can legally purchase the condo and be within the 49% foriegn ownership requirement?

I am both new and a small fry in the sense of the amounts of money and business transactions some of you folks conduct, but hopefully someone will assist me. Thanks for your time.

In June I transfered $35,000 from USA to Kasikorn Bank account. In the wire tarnsfer form I stated it was payment for purchase of a house. When the money was deposited into our account Kasikron Bank called and asked me and the wife to come to the bank to sign some forms. They completed the required forms and gave us a copy. We used this during the sale transaction as proof of funds transfer. I forget the form number, but the Land Registration Office accepted it without question. No withhold was taken by the BOT and we had access to the funds immediately. Good Luck.

[steve73]

In June, I also transferred some funds to Thailand to buy a house. 31,000 GBP, from my UK bank via telephone-banking to my account at the "Thai bank for agriculture...", None of the regular banks would allow me to open an account (as no work permit they said). Bangkok bank was used to recieve and convert the funds but would not release them until I'd signed a fax indicating that they were for "personal expenses". They wouldn't accept for me to say it was to buy a house!

Anyway, no withholding, withdrew most of it in cash to buy in g/f's name, with the 30 year lease, and using the rest to pay electric bills via direct debit.

But I don't have the FETF (perhaps I'll ask them for it when I'm back there).

thanks for the link for the form, maestro!

[Maestro]

I do not quite understand when this comes into play though:

6. When remitting money for a condo purchase, indicate the payment purpose on the payment order form in the field for a message for the beneficiary, indicating the name of the condo building and the number or other designation of the condo unit. When obtaining the FETF, make sure the purpose is clearly stated on the form.

It is the order you give to your non-Thai bank to remit the money to your bank account in Thailand.

--

Maestro

[kerr17]

I just booked a condo and next month when i'll sign the contract i will have to pay the 15% of the total amount and at the end of 2008 when the condo is suppose to be ready the rest (85%).

I was told by them that by the law of Thailand i need to follow the following procedure:

If I want the "Foreigner Exchange Transaction Form" then every transfer must be made in amount over 20,000.USD or more in order to qualify for "Foreigner Exchange Transaction Form".

- When the building is done, I have to deal with 85% the rest. But I have to transfer the money to cover the total price (not just 85%) because of the law of Land Department.

And the project will give the rest back to me later.

- They have two ways to transfer the money.

The first one is I must have my own account in Thailand and transfer the money to my account. (This way, i will have to make the cashier cheque from the bank to pay them)

The second one is to transfer the money to their bank account directly.

- The bank account that you want to transfer the money from, It has to be your own account. It cannot be anyone else account (not even my mom one).

Later this week i talked to my lawyer and he told me differently:

- He said that is possible to do multiple transaction as long as the total amount is enough to cover the condo price.

- He also said that there is no limit and that anyone can send the money to me as long as it is specified on the order form (e.g those money belongs to XXXX in order to purchase etc.....)

My problem is that i'm getting money every 3 months by renting out some property in Europe and i would like to save that money for the next 12 months and add the remaining amount using my mom account.

Is that possible?

Can anyone be kind enough to clarify all this?

Does anyone have or had the same problem?

Thanks

Thanks in advance

[jackr]

If it's only for a year, OP, and beings as you need funds to build a house anyway, why not rent and save all the hassle?

Defo demand that your bank transfer in your currency to get the onshore rate as you'll get shafted for around $1500 on 750k if not

[Sophon]

2. You can request a FETF for any inward remittance of not less than the equivalent of USD 20,000. If this amount is reached only by adding up two separate remittances, you cannot get the FETF.

I'm sure this is technically correct. However, when I bought my condo I made two separate transfers each of less that USD 20,000 and had no problems getting the FETF based on those. The transfers were made on consecutive days so maybe that helped.

So with a little flexibility from you bank it is possible to get the FETF based on two transfers of less than USD 20,000, but it would probably be wise to ask your bank first if they would be willing to do this.

Sophon

[tangoll]

This thread below addresses this procedure and has answers to the questions you asked:

http://www.thaivisa.com/forum/index.php?sh...p;#entry1592519

or click here

There is also an image of an actual FETP in that thread. Other bits of info that came out:

In a couple of title transfers, the Lands Department accepted just a letter from the receiving bank that the foreign funds were received, and not just the FETP. This might have been the case if the inward remittance had been less than the equivalent of USD 20,000.

If the stated purpose made in the message for receiving bank is "for purchase of condo", then the 30% foreign remittance withholding is not applicable, and 100% of your transmitted funds is converted to baht and made available to you. Be sure you transmit foreign funds, and not offshore purchased baht.

In your question about the difference of responses from the sales office of your project and your lawyer, your lawyer is correct. Your inward remittances can come in several different amounts (subject to each satisfying the bank's requirement of minimally USD 20,000), and at time of title transfer at the Lands Department, the total amounts of all the FETPs must equal or exceed 100% of the cost of the condo. The payment you make to the project developer at that time would be the 85% being the balance payment due, assuming you have paid the 15% deposit earlier.

The inward remittance can come in from any source, be it your own foreign account or your mom's account or the funds given to the sending bank in cash. The receiving bank just needs to know which is the receiving account holder, who the FETP will be issued to.

This whole process is straightforward and not that difficult.

Edited November 17, 2007 by tangoll

[kerr17]

This thread below addresses this procedure and has answers to the questions you asked:

http://www.thaivisa.com/forum/index.php?sh...p;#entry1592519

or click here

There is also an image of an actual FETP in that thread. Other bits of info that came out:

In a couple of title transfers, the Lands Department accepted just a letter from the receiving bank that the foreign funds were received, and not just the FETP. This might have been the case if the inward remittance had been less than the equivalent of USD 20,000.

If the stated purpose made in the message for receiving bank is "for purchase of condo", then the 30% foreign remittance withholding is not applicable, and 100% of your transmitted funds is converted to baht and made available to you. Be sure you transmit foreign funds, and not offshore purchased baht.

In your question about the difference of responses from the sales office of your project and your lawyer, your lawyer is correct. Your inward remittances can come in several different amounts (subject to each satisfying the bank's requirement of minimally USD 20,000), and at time of title transfer at the Lands Department, the total amounts of all the FETPs must equal or exceed 100% of the cost of the condo. The payment you make to the project developer at that time would be the 85% being the balance payment due, assuming you have paid the 15% deposit earlier.

The inward remittance can come in from any source, be it your own foreign account or your mom's account or the funds given to the sending bank in cash. The receiving bank just needs to know which is the receiving account holder, who the FETP will be issued to.

This whole process is straightforward and not that difficult.

Thanks for your very helpful reply, this is what the sales executive answer on my request of clarification (i also mentioned what you told me as well as what the lawyer said):

For transfer the money, we got the options for you.

For the contract 15% you got 2 options 1. Cash ( you just pay to our project ) or

2. Credit notes ( You transfer the money to your bank account or our account in Thailand and request to the bank to get the credit notes as your evidence that you already transferred the money.You have to keep the credit notes until the tranfer is done)

For transfer 85% you got 2 options 1. Transfer to our account and company will give your money back for the rest (15% that you paid before)

2. Transfer to your own account in Thailand

Both of these two options, you have to transfer the money to cover the total price not just the 85%. Because the Land department will look at the total price on the transfer date.

If you have your own account in Thailand then the rest of money will stay in your account. It does not need to wait the company transfer the rest of money back to you. And many foreign purchaser always use

this option.

When you transfer this part of money, the bank will give you as a Foreign Exchange Form with specify os indicate th purpose of this money (purchasing the condominium, Unit no...., price... etc.)

Now as i suppose its not their problem how do i get a FETF as long as they are getting their money, should i just contact directly my bank and the Land department to get further clarification?

Is it just one FETF (which i'm gonna get anyway as one transfer will be higher then 20.000$) what i need as well as credit note stating the transfer of the money to cover the full amount not enough?

It sounds weird to me that i have to transfer the whole 100% at once.

If i'm not following their procedure but i'm doing my own like you said and my lawyer said can i have any problem? I think their main objective is to get their money then how i will deal with the rest is not their problem, am i right?

Thanks in advance to all

[tangoll]

I don't really understand your description of what the sales executive is telling you about the payment options and the relationship to the FETP's. You should treat them as two distinct and different events.

1. As for the payment, your obligation as buyer is to pay 15% upfront and 85% balance when the title transfer is done.

2. As for the FETP's, your obligation as buyer is to ensure that you have remitted into Thailand foreign funds equivalent to or greater than 100% of cost of the condo. There can be one, two, three, or more remittances at different times to satisfy your payment obligations. Each remittance will result in one original FETP, which your receiving bank issues to you after they have received your foreign funds, converted to thai baht, and deposited into your account with the receiving bank.

3. When the project developer says it's time to do the title transfer, you prepare the baht amount necessary to pay him the 85% still owing, and you bring all the originals of the one, two, three, or more FETPs showing the remittances totalling more the 100% of the cost of the condo.

Then you go with the developer to the land office, and with other documents, these are presented to the Lands Department, and they return back to you the title deed showing the transfer of the title to you.

You do not get back the originals of the FETP's.

I think the sales executive is making this out to be more complicated than needs be; either that, or he/she doesn't really understand the process all that well.

[kerr17]

I don't really understand your description of what the sales executive is telling you about the payment options and the relationship to the FETP's. You should treat them as two distinct and different events.

1. As for the payment, your obligation as buyer is to pay 15% upfront and 85% balance when the title transfer is done.

2. As for the FETP's, your obligation as buyer is to ensure that you have remitted into Thailand foreign funds equivalent to or greater than 100% of cost of the condo. There can be one, two, three, or more remittances at different times to satisfy your payment obligations. Each remittance will result in one original FETP, which your receiving bank issues to you after they have received your foreign funds, converted to thai baht, and deposited into your account with the receiving bank.

3. When the project developer says it's time to do the title transfer, you prepare the baht amount necessary to pay him the 85% still owing, and you bring all the originals of the one, two, three, or more FETPs showing the remittances totalling more the 100% of the cost of the condo.

Then you go with the developer to the land office, and with other documents, these are presented to the Lands Department, and they return back to you the title deed showing the transfer of the title to you.

You do not get back the originals of the FETP's.

I think the sales executive is making this out to be more complicated than needs be; either that, or he/she doesn't really understand the process all that well.

Thanks a lot for your help and your advice, the sales executive she finally admit she was wrong.

I can have as many credit notes as i want as long as their good to cover the full amount.