Mortgage In Thailand -> Could I Use The Proceeds To Buy A Condo Under My Name 100% Legally?

[ncbkk]

Hi,

I am a bit confused about what is allowed (I mean 100% legal...) and what is not...

My wife is Thai and i am working with a work permit in Thailand.

Firstly, would it be possible to get a mortgage from a local bank under my name or jointly if we buy a condo? I know that local banks may be reluctant to lend when a foreigner is involved, but what i am particulalry interested in knowing is if there is any regulation from the Bank of Thailand or other preventing them from granting me a mortgage?

Secondly, let's say that my wife and i obtain a mortgage loan locally. Would i be allowed to register the condo under my name or jointly with my wife? my concern is that in such a case the money to pay for the condo would not have been transferred from abroad, which would not be in line with my understanding of the requirements for a foreigner to buy a condo...

Again, i would appreciate any clarification on the relevant regulations.

Thanks a lot!

Cheers,

Nick

[mark5335]

Would it be possible to get a mortgage from a local bank under my name or jointly if we buy a condo?

Local banks would only grant a loan to a foreigner if he/she is also a Permanent Resident of Thailand. As a work permit holder, you would not be allowed to be a joint borrower. However, it is possible for your wife to be sole borrower and for you to be a guarantor.

If there is any regulation from the Bank of Thailand or other preventing them from granting me a mortgage?

Regulations prevent licensed banks in Thailand from granting domestic mortgage loans to foreigners.

Would I be allowed to register the condo under my name or jointly with my wife?

For a foreigner's name to be included on the land title certificate (tabien baan), the proceeds for the purchase must be from foreign currency remitted into Thailand from overseas. The Land Titles Office will not allow the transfer to the property title into a foreign name, either individually or jointly with a Thai spouse, without first sighting the Foreign Exchange Transfer Certificate (issued by a local bank) as evidence that the purchase monies were remitted from overseas.

Edited September 18, 2009 by mark5335

[InterestedObserver]

For a foreigner's name to be included on the land title certificate (tabien baan),........

Isn't the Tabien Baan a house registration document to identify who lives at that address? The Chanote would be the land title certificate.

[flying]

Your question raises a interesting angle for me.

Since I am on a mortgage with my wife for a condo.

But she already had the mortgage & I was added to it on our last trip.

It is at the Bank of Aydhya. It was a easy affair to add my name but as others have said

in reality this is just the mortgage. The registration comes at the end when paid in full.

I did not get the transfer from outside paper done so I will probably have a problem in the end when we transfer registration of the bank as owner to us as owners. Because I did not have the trans from outside paper done. I just deposited enough money to pay it off monthly with a auto pay.

They may accept that because it comes from my personal accounts in Siam & Bangkok banks.

Then again they will probably say that is not good enough as it does not prove original source of money.

Not a big deal though as I can theoretically buy half again at that time. It is after all just a show of outside money. After which we could send it back to the states.

Ah.....the ease of doing business in Thailand eh?

The only worry is if something happened to my wife before registration. I am not sure how hard that would be to straighten out. Perhaps a will is in order just in case.

Good Luck.

[emsfeld]

Was wondering if such arrangement is legal:

- Wife gets finance on the condo locally. Mortgage is in her name.

- Mortgage gets paid off in, say, 5 years, title transferred to wife (only her name on the title)

- Foreigner transfers money from overseas to buy property/ condo off wife, say, at 60% of market value.

- Title transferred into foreigner's name or jointly owned.

Is that legal? On face value, it seems to fulfill all legal requirements.

[flying]

Was wondering if such arrangement is legal:

- Wife gets finance on the condo locally. Mortgage is in her name.

- Mortgage gets paid off in, say, 5 years, title transferred to wife (only her name on the title)

- Foreigner transfers money from overseas to buy property/ condo off wife, say, at 60% of market value.

- Title transferred into foreigner's name or jointly owned.

Is that legal? On face value, it seems to fulfill all legal requirements.

Name on mortgage does not mean much.

It is only good for the bank & they were happy campers to add mine.

Why not? They have another guarantee....

But once paid off then the fun begins. The bank just washes their hands of it they have been paid. Now to go register the property..... First off they may accpet you have been paying but probably will still want to see where the funds originated from.

Secondly the condo itself will need to fall into the 49% foreign ownership of the condo complex must not be exceeded.

So say you make it through the steps of being on the mortgage & the registration/proof of outside funds. You still have that last hurdle of condo Thai citizen ratio to meet. Since condos is the one thing a foreigner can own it seems that is quick becoming the bigger deal to satisfy.

[emsfeld]

But once paid off then the fun begins. The bank just washes their hands of it they have been paid. Now to go register the property..... First off they may accpet you have been paying but probably will still want to see where the funds originated from.

Secondly the condo itself will need to fall into the 49% foreign ownership of the condo complex must not be exceeded.

That's what I meant. Mortgage being in wife's/fiance's name only, may add to the credibility of purchasing the condo off her once paid off. Just wondering if it was then within the legal requirements, if I purchased the condo from my wife with funds transferred from overseas (assuming the 49% quota is met)? As a result, the funds will come from overseas, but since this is a null-sum game between my wife and myself, the condo was financed locally by a Thai bank.

I am asking because this arrangement would allow to obtain bank finance for a condo from a Thai bank and then to legally get the title transferred into the foreigner's name once the mortgage had been paid off (assuming you're within the 49% quota). Apart from the fees that incur, you as a foreigner, can get local finance, but still legally own later on. That's the crucial bit IMO.

[trogers]

Was wondering if such arrangement is legal:

- Wife gets finance on the condo locally. Mortgage is in her name.

- Mortgage gets paid off in, say, 5 years, title transferred to wife (only her name on the title)

- Foreigner transfers money from overseas to buy property/ condo off wife, say, at 60% of market value.

- Title transferred into foreigner's name or jointly owned.

Is that legal? On face value, it seems to fulfill all legal requirements.

I do not see what is wrong with such an arrangement or what benefit the foreigner gains.

If the foreign fund was transferred into Thailand to buy a condo from a local, is there any difference if this local is your Thai wife?

What is important is that foreign fund was transferred into the country.

[emsfeld]

Was wondering if such arrangement is legal:

- Wife gets finance on the condo locally. Mortgage is in her name.

- Mortgage gets paid off in, say, 5 years, title transferred to wife (only her name on the title)

- Foreigner transfers money from overseas to buy property/ condo off wife, say, at 60% of market value.

- Title transferred into foreigner's name or jointly owned.

Is that legal? On face value, it seems to fulfill all legal requirements.

I do not see what is wrong with such an arrangement or what benefit the foreigner gains.

If the foreign fund was transferred into Thailand to buy a condo from a local, is there any difference if this local is your Thai wife?

What is important is that foreign fund was transferred into the country.

I guess it's a personal preference - I prefer to finance properties through (local) mortgages rather than equity. This arrangement would provide a means to obtain mortgages locally and then once the mortgage is paid off to legally own.

If that's possible, then I could basically purchase the condo from my wife for, say, 500 Baht. Not sure if there are any rules on the minimum amount you'd have to bring in from overseas though?

[trogers]

Was wondering if such arrangement is legal:

- Wife gets finance on the condo locally. Mortgage is in her name.

- Mortgage gets paid off in, say, 5 years, title transferred to wife (only her name on the title)

- Foreigner transfers money from overseas to buy property/ condo off wife, say, at 60% of market value.

- Title transferred into foreigner's name or jointly owned.

Is that legal? On face value, it seems to fulfill all legal requirements.

I do not see what is wrong with such an arrangement or what benefit the foreigner gains.

If the foreign fund was transferred into Thailand to buy a condo from a local, is there any difference if this local is your Thai wife?

What is important is that foreign fund was transferred into the country.

I guess it's a personal preference - I prefer to finance properties through (local) mortgages rather than equity. This arrangement would provide a means to obtain mortgages locally and then once the mortgage is paid off to legally own.

If that's possible, then I could basically purchase the condo from my wife for, say, 500 Baht. Not sure if there are any rules on the minimum amount you'd have to bring in from overseas though?

The land department has assessed market values in the comp database. Your housing agent can make inquires. Min. fund to be transferred is forex converted to Thai Baht by the Thai bank to meet this assessed market value.

I agree there should be some leverage - equity/loan in the investment.

I done this by buying 2 condos.

I sent in money to buy a 2-bedroom unit under my wifes name, but I keep the bank transfer documents.

Then my wife mortgaged this unit at 50% of purchase price, and used the loan (plus 20% cash) to buy a 1-bedroom under my name, using the bank transfer documents earlier.

Thus, leverage is almost 2 to 1 for equity to loan.

[stgrhe]

For a foreigner's name to be included on the land title certificate (tabien baan),........

Isn't the Tabien Baan a house registration document to identify who lives at that address? The Chanote would be the land title certificate.

correct ; the chanote is the land title deed, the tabien baan is the house registration bok (blue or yellow)

May I add that a chanote is but one of a number of different types of title deeds.

[clinique]

need to know do you WANT the condo in YOU name..or joint.

could try these guys, helped us get aloan,, despite the name thye work all over LOS.

www. secondhomechiangmai .com

[InterestedObserver]

May I add that a chanote is but one of a number of different types of title deeds.

We are talking condos and bank mortgages here. A bank would not lend unless it got hold of a real chanote for the condo.

Edited October 5, 2009 by InterestedObserver