Strange Experience Buying Condo

[Zen]

I transferred money from overseas to my bank account for the purchase of my condo. Each transfer was about US$22,000 so the bank gave me a "credit advice" for each transfer.

Now my condo is almost ready and developer asked me to prepare either the FET form OR a letter of guarantee from the bank stating that the money came from overseas for buying this condo.

Since i transferred US$22,000 each time, i knew i won't have the FET form, but i knew i could use the credit advice as evidence. But just to be sure, i asked the bank for a "letter of guarantee" and i brought a sample for them (my developer gave me the sample).

Surprisingly the bank issued me a FET for EACH of my transfers so now besides having several "credit advice", i also have several FET with each amount not over US$22,000.

AND the bank even signed and stamped on my "letter of guarantee" (which was meant to be a sample but anyway has all my correct info)

I'm happy i got everything but puzzled be coz:

1) i read that in order to get FET form, the transaction must be over US$50,000, doesn't it?

2) the FET form is juz an A4 paper photocopied form with some blanks to fill in, and hand written by the bank staff (looks very unprofessional) and has the signature and stamp of the bank...i haven't seen an FET form before, but to me this looks unreal?

Anyone had similar experience? Maybe this is what the bank calls "good service"...give the customer what he wants?

[sotsira]

If your referring to a "tor tor sam" document from the bank in Thailand then it is issued

for any sum over $20k not $50k

[aussiebebe]

No, it's not special service, or strange, it's just standard practice; any foreigner remitting US$20k or more into Thailand will receive the FET form. Don't worry about the appearance, as long as the name is identical to that appearing on the purchase contract and the instruction on the form states that the transfer is for the purpose of purchasing property, it's fine. Congrats on your new condo!

[Mousehound]

Sorry if I don't get this. Does this mean you can't buy property with funds you imported unless they are expressly for the purpose of buying a property? is there alimit on the ammount of funds that may be imported? eg. If I bring in say $10 000 US and live of this for a while and then decide to buy a property is this a problem?

[soi41]

Sorry if I don't get this. Does this mean you can't buy property with funds you imported unless they are expressly for the purpose of buying a property? is there alimit on the ammount of funds that may be imported? eg. If I bring in say $10 000 US and live of this for a while and then decide to buy a property is this a problem?

Your biggest problem will be to find any property in that pricerange

[Mousehound]

Sorry if I don't get this. Does this mean you can't buy property with funds you imported unless they are expressly for the purpose of buying a property? is there alimit on the ammount of funds that may be imported? eg. If I bring in say $10 000 US and live of this for a while and then decide to buy a property is this a problem?

Your biggest problem will be to find any property in that pricerange

Sorry should have said 100 000$

[saakura]

What does FET mean? Foreign Exchange Transfer?

[sotsira]

I presume so, but in Thailand it's called a tor tor sam document.

[sotsira]

Sorry if I don't get this. Does this mean you can't buy property with funds you imported unless they are expressly for the purpose of buying a property? is there alimit on the ammount of funds that may be imported? eg. If I bring in say $10 000 US and live of this for a while and then decide to buy a property is this a problem?

Only if you want to buy a condo in your name, then you would need to submit this as the purpose of the funds to

your bank in Thailand for them to issue the tor tor sam document.

This document is required solely for purchases in foreign ownership at the land office,

if however you work in Thailand with a work permit then it's not required as your funds can be earned locally.

As for limits to funds, i'm not aware of any, but there could be limits set by your issuing bank from abroad.

[yankee99]

Sorry if I don't get this. Does this mean you can't buy property with funds you imported unless they are expressly for the purpose of buying a property? is there alimit on the ammount of funds that may be imported? eg. If I bring in say $10 000 US and live of this for a while and then decide to buy a property is this a problem?

As long as you wire transfer the funds from abroad you should always be able to get a letter from the bank.

[Mousehound]

I get it now thanks.

[Langsuan Man]

You can buy anything in Thailand without the Foreign Exchange Certificate, but without it you cannot repatriate the money back to your home country in the future

[yankee99]

You can buy anything in Thailand without the Foreign Exchange Certificate, but without it you cannot repatriate the money back to your home country in the future

This is NOT true!!!! You need the cerificate or bank letter for condo foriegn ownership.

[dieter1]

how about taking cash from abroad ?

Someone told me, you can show the money to the customs officer at the airport, and they give you a document to proove, that you bring this money in from abroad. Would this be sufficient for buying a condo ?

[Langsuan Man]

You can buy anything in Thailand without the Foreign Exchange Certificate, but without it you cannot repatriate the money back to your home country in the future

This is NOT true!!!! You need the cerificate or bank letter for condo foriegn ownership.

Foreign ownership is based upon the building quota, not how it was paid. I stand by my original statement

[ThaidDown]

You can buy anything in Thailand without the Foreign Exchange Certificate, but without it you cannot repatriate the money back to your home country in the future

This is NOT true!!!! You need the cerificate or bank letter for condo foriegn ownership.

Foreign ownership is based upon the building quota, not how it was paid. I stand by my original statement

I believe that for a foreigner the Land Office will ask where the money to purchase the Condo came from. If from within Thailand they will want to see that it was earned legitimately and that income tax has been paid. If you say that the money is from overseas you will have to show paperwork that verifies that ie FET/TT3. Not sure about cash declared at the border though.

Of course the condo still needs to be within the 49% 'foreign'.

[IamNotaNumber]

Foreign ownership is based upon the building quota, not how it was paid. I stand by my original statement

As far as I know you are wrong. No FET document (or equivalent), no registration in farang name. Proof of legitimate local earnings is an equivalent. And naturally the quota must be available also.

Let's face it, if the opposite was true then the condo market would be 100 times busier than it is, what with all the "black" cash money floating around looking for a home.

Of course there are other ways of obtaining this bit of paperwork than just by having "new" money sent from abroad.

Edited October 20, 2012 by IamNotaNumber

[IamNotaNumber]

Someone told me, you can show the money to the customs officer at the airport, and they give you a document to proove, that you bring this money in from abroad. Would this be sufficient for buying a condo ?

As far as I know this used to be possible. Given the general clampdown on laundering I doubt that it will (officially) remain so for long, if indeed it still is.

[pomchop]

You can buy anything in Thailand without the Foreign Exchange Certificate, but without it you cannot repatriate the money back to your home country in the future

This is NOT true!!!! You need the cerificate or bank letter for condo foriegn ownership.

Foreign ownership is based upon the building quota, not how it was paid. I stand by my original statement

I believe that for a foreigner the Land Office will ask where the money to purchase the Condo came from. If from within Thailand they will want to see that it was earned legitimately and that income tax has been paid. If you say that the money is from overseas you will have to show paperwork that verifies that ie FET/TT3. Not sure about cash declared at the border though.

Of course the condo still needs to be within the 49% 'foreign'.

how does it work if a new building is sold to 51% thai and 49% foreign and then over time more thai owners sell to farangs meaning that the building may now be more farang owned than Thai?? Is that legal? How can you know for sure if you buy a condo from a thai person that it will be still within the 49% rule? Is it likely that if you are a farang and buy from a thai without worrying about the percentages that you could get screwed by violating the law? Or is it required at the filing of the title that the land office somehow makes sure it is legit? Confusing.....

[IamNotaNumber]

how does it work if a new building is sold to 51% thai and 49% foreign and then over time more thai owners sell to farangs meaning that the building may now be more farang owned than Thai??

Very simple: it cant happen. For each sale the land office verifies the current % of farang ownership in the building, according to their records (which are the only valid ones). If there isnt available space in the farang quota then they just wont process the transfer into farang name. End of story.

Some old buildings (dating back to the big crash) have a quota of 70/30 instead of 51/49, but the principle is identical.