Registering Off Plan Condo In Foreign Name

[thai1234]

In 2006 I signed an agreement to purchase a 1.5 million baht off plan condo in Pattaya. I have made monthly payments for the past 3 years, totalling about half million baht.

The condo is now finished and I am due to pay the remaining 1 million.

When I send the money from the UK I will get a tor tor 3 showing the money came from the UK for the 1 million, but I have no documentation for the half a million paid monthly over the past 3 years.

Will this be a problem at the land office transfering the condo to a foreign name? Is there any way round it?

[Wonderboy]

In 2006 I signed an agreement to purchase a 1.5 million baht off plan condo in Pattaya. I have made monthly payments for the past 3 years, totalling about half million baht.

The condo is now finished and I am due to pay the remaining 1 million.

When I send the money from the UK I will get a tor tor 3 showing the money came from the UK for the 1 million, but I have no documentation for the half a million paid monthly over the past 3 years.

Will this be a problem at the land office transfering the condo to a foreign name? Is there any way round it?

I do believe they abandoned tor-tor3 some years ago, but the term is still used to describe the bank statement that shows that money comes from abroad. Anyway wether it is called tor-tor3 or not, you will not get it automatically. You will have to ask for a receipt for the transfers you have done at the branch that handled your transfer (usually in Bangkok, but call to find out where). In the old tor-tor3 days, the minimum transfer would have to be equivalent of 10.000 USD, but dont think that is true anymore. Just get the bank to give you statements for each of the transfers you have done, and you should be all right.

Another option is to ask the seller to lower the official price that will be registered. Might need some small "gifts" to make it happen, but it is what I did at my first condo purchase. My second condo (this one was off-plan) the seller split the price into 70% for the condo, and 30% for fittings without I requested it. Probably to save transfer tax, and that is probably a valid way to do it. Only the 70% value was registered at land office.

The last option I can think of is transfer the full sum in (1.5M , get your document, and transfer 0.5M back to England when done.

WB

Edited July 28, 2009 by Wonderboy

[Livinginexile]

Did you make the monthly payments from the UK?

[tangoll]

The new form is called Foreign Exchange Transaction Form, and can be issued by the receiving bank for amounts greater than equivalent of US$20,000. This FETF will show the equivalent baht when converting the foreign currency remitted in, and when transferring your condo unit at the Land Dept office, you must have FETF's of baht equivalent greater than the transaction amount declared to the Land Dept office for the condo.

Wonderboy is correct on how to handle your situation. Ask your developer what amount he intends to declare on the transfer transaction form and go from there. Depending on the size and condition of the condo unit being transferred to you, and what you intend to do with it, you may need extra funds for furnishings, additional fitting out, etc. So even if your final payment to developer is 1 mil baht, you may need to remit in more than that to do the furnishings. You should also ask your bank what documents they need if and when you wish to export funds you had remitted in previously. You may need to show sales transaction forms, tax receipts, etc.

How did you pay the developer the installment payments of 500,000 baht? You may be able to get FETF's to cover those payments.

[PattayaParent]

For any amounts transferred in below the 600,000 Baht FETF requirement you can ask the bank for a bai rap rong which will show the currency transfer details.

Also cross relate the transfers to the receipt from the developer for the payments and you should be OK.

As already suggested find out what value the developer is going to declare at the land office as you only need the FETF to cover that amount.

[12DrinkMore]

Another option is to ask the seller to lower the official price that will be registered. Might need some small "gifts" to make it happen, but it is what I did at my first condo purchase. My second condo (this one was off-plan) the seller split the price into 70% for the condo, and 30% for fittings without I requested it. Probably to save transfer tax, and that is probably a valid way to do it. Only the 70% value was registered at land office.

This procedure might come back to bite you later. Presumably the seller avoided paying tax on the profit plus the other taxes. But this now means you have an undervalued price registered. When you come to sell it, you might find that the tax people are not prepared to accept a figure which is 30% less than the market value.

But this being Thailand, who the f*^ knows. :D

[thai1234]

Many thanks for the advice everybody.

The monthly payments were made in cash generated from renting out another condo in Thailand, so no chance of getting certificates to prove the money was sent from the UK.

I have a sterling currency account with the bangkok bank, as well as a thai baht account.

Is the best option to transfer the money from my UK account to the bangkok bank sterling account and then move the money to the baht account, or move the money straight from my UK account to the baht account?

If the best option is to move the money from the bangkok bank sterling account to the baht account, how long does this take? (Both accounts are with the headoffice of bangkok bank)

To clarify: once the money is in the thai baht account I ask the bank to give me a FETF (for whatever price the developer registers with the land office) and a cashiers cheque for 1 million payable to the developer.

If the developer wont reduce the registered price and I send 1.5 million and return the other 0.5 million to the UK, will the land office query an FETF for 1.5 million and a cheque for 1 million?

Any any documents I need to bring when transfering the condo to my name?

The last time a bought a condo it was second hand, and the seller and I went to the land office. Will it be the same with a developer, or will we sign the contract in the developers office?

[PattayaParent]

Is the best option to transfer the money from my UK account to the bangkok bank sterling account and then move the money to the baht account, or move the money straight from my UK account to the baht account?

If the best option is to move the money from the bangkok bank sterling account to the baht account, how long does this take? (Both accounts are with the headoffice of bangkok bank)

Ask you bank.

To clarify: once the money is in the thai baht account I ask the bank to give me a FETF (for whatever price the developer registers with the land office) and a cashiers cheque for 1 million payable to the developer.

If the developer wont reduce the registered price and I send 1.5 million and return the other 0.5 million to the UK, will the land office query an FETF for 1.5 million and a cheque for 1 million?

The land office won't care that the FETF is for more than the amount that you are paying.