Purchasing A Condo With Money That Is Already Here

[Ratsima]

I'm about to purchase a condo in Phetchaburi. Most of the money I want to use is already here; transferred incrementally over the years from a US bank to Bangkok Bank and then on to a time deposit at Kasikorn Bank.

My wife called the Land Office in Phetchaburi. They told her that all they need is a letter from the bank saying that funds equal to the total purchase price of the condo were transferred by me from abroad to the bank. No mention of a foreign exchange certificate.

1 - Will Bangkok Bank be willing and able to look back into their records, total up the total amount transferred from abroad and issue such a letter?

2 - Will a letter from Bangkok Bank suffice when the funds to pay for the condo will actually come from Kasikorn Bank?

Furthermore, the Condominium Act states, in pertinent part: "...who brings a foreign currency into the Kingdom or withdraws the money from a non-resident Baht account..."

The Act clearly states that it is sufficient to withdraw money from non-resident Baht account. It would seem then that the only evidence required by the Act is proof that the account is a 'non-resident Baht account' and that the origin of the funds is irrelevant.

What am I missing here?

[Langsuan Man]

You are missing the fact that the land office will let you purchase the condo using the money here in Thailand but will not issue the Chanote in a foreign name without the Foreign Exchange Certificate

I seriously doubt if Bangkok Bank will issue a certificate based upon funds transferred incrementally over the years from a US bank to Bangkok Bank. Since when one transfers cash to purchase a condo you state to the transferring bank that the purpose of the transfer is to purchase a condominium, which triggers the issuance of the certificate. And it doesn't help your case that these funds were invested into a K Bank time deposit account, not something that a condo purchaser would do

[Ratsima]

You are missing the fact that the land office will let you purchase the condo using the money here in Thailand but will not issue the Chanote in a foreign name without the Foreign Exchange Certificate

In what Thai law or regulation can I find this rule? AFAIK, it is not mentioned in the Condominium Act.

And it doesn't help your case that these funds were invested into a K Bank time deposit account, not something that a condo purchaser would do

Unless the prospective condo purchaser was saving up money for a condo and taking advantage of higher savings account interest in Thailand than in the US.

Another question:

This condo purchase involves the payment of a reservation fee, a deposit, 18 separate monthly down payments and a final balloon payment of about 75% of the purchase price. Does each one of those 21 separate payments require a separate Foreign Exchange Certificate?

[aliep]

Assuming bought in foreign name. What happens when you sell it? Do you get some kind of a certificate back from the Land Office?

[Langsuan Man]

You can't pick and choose which law / regulation / policy that serves you best. If you want to keep citing the Condominium Act then you must follow all the steps listed in the act. And saving money in a Fixed deposit here in Thailand to take advantage of the better interest rate is not part of the act

Anyone can buy anything here in Thailand, either outright or by taking advantage of certain loop holes, what you cannot do is repatriate the money if you should sell at a later time without a Foreign Exchange Certificate that is attached to the Chanote by the land office and becomes part of the official transaction. You are given a copy of the certificate by the land office after the Chanote is issued

aliep if you re-sell the property the original will be returned to you by the land office and will be accepted by your bank to repatriate the funds back to your home country

[Ratsima]

You can't pick and choose which law / regulation / policy that serves you best. If you want to keep citing the Condominium Act then you must follow all the steps listed in the act. And saving money in a Fixed deposit here in Thailand to take advantage of the better interest rate is not part of the act

Anyone can buy anything here in Thailand, either outright or by taking advantage of certain loop holes, what you cannot do is repatriate the money if you should sell at a later time without a Foreign Exchange Certificate that is attached to the Chanote by the land office and becomes part of the official transaction. You are given a copy of the certificate by the land office after the Chanote is issued

You certainly wrote a lot but you didn't really answer my questions.....

[aliep]

thank you Langsuan man

[Delight]

My wife called the Land Office in Phetchaburi. They told her that all they need is a letter from the bank saying that funds equal to the total purchase price of the condo were transferred by me from abroad to the bank. No mention of a foreign exchange certificate.

It may well be that the letter which the land office is seeking -is in fact the 'Certificate'. My condo was purchased in my name with just a letter from my bank

It seems to me that all your questions can be answered by Bangkok Bank.

May I suggest that you pay them a visit and detail the outcome on this forum.

It would be useful.

[skippybangkok]

What nobody knows, if you have a WP and can prove the money was earned legitimately in Thailand, you can use that to buy a condo.

I did

Was not easy, as most have never heard of it, but a good lawyer can help. Did not pay one cent in tea money

Edited April 6, 2013 by skippybangkok

[lgking]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

[lgking]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

[lgking]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

[Danbit]

I once invested 250.000B at Seamico it is now about 2.500.000B

Yes many years ago, can the profit be used ? I expect it is a legal profit I paod tax of the didvidend each year.

[thaimlord]

If you need to comply with this regulation, then send your money back home (or anywhere else I guess) and then bring it back in, in accordance with the appropriate regulations.

Thaimlord.

[rayongchelsea]

Any estate agent will know how to " circumvent" the need to send the money abroad.

[how241]

You can't pick and choose which law / regulation / policy that serves you best. If you want to keep citing the Condominium Act then you must follow all the steps listed in the act. And saving money in a Fixed deposit here in Thailand to take advantage of the better interest rate is not part of the act

Anyone can buy anything here in Thailand, either outright or by taking advantage of certain loop holes, what you cannot do is repatriate the money if you should sell at a later time without a Foreign Exchange Certificate that is attached to the Chanote by the land office and becomes part of the official transaction. You are given a copy of the certificate by the land office after the Chanote is issued

aliep if you re-sell the property the original will be returned to you by the land office and will be accepted by your bank to repatriate the funds back to your home country

Thanks for you info.

[belg]

this is just another crazy law to make it difficult for us farangs... thais can buy land in any country the locals can, i mean civilized (usa/europe) ... but for a farang to even buy a condo, with money, transferred here once and put on a savings account.. what you gonna do when you don't even have a bank account in your country of origin ? just another ... ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

[wpcoe]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

Why the need to use a "Chinese underground" bank? Why not simply do a SWIFT transfer from Bangkok Bank (or other bank where you have the funds stored) directly to the USA bank?

The only "problem" in transferring funds back to the USA is that any large transfer (>$10,000?) must be reported by the bank to certain government agencies. If, by any chance, you had been shielding money from US taxation -- e.g. capital gains in sale of a property, or income unreported to the IRS -- you will then be required to pay tax on the funds, and any penalties if the tax was overdue. Of course, if you have been complying with all the IRS taxation regulations, there'd be nothing to worry about.

[JoePai]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

Why the need to use a "Chinese underground" bank? Why not simply do a SWIFT transfer from Bangkok Bank (or other bank where you have the funds stored) directly to the USA bank?

The only "problem" in transferring funds back to the USA is that any large transfer (>$10,000?) must be reported by the bank to certain government agencies. If, by any chance, you had been shielding money from US taxation -- e.g. capital gains in sale of a property, or income unreported to the IRS -- you will then be required to pay tax on the funds, and any penalties if the tax was overdue. Of course, if you have been complying with all the IRS taxation regulations, there'd be nothing to worry about.

USD$20,000 is the limit

[graham67]

I sold my condo to a German guy about two years ago.He brought his money with him from Germany (cash) so the tor tor sam was a little difficult.However the estate agent knew a friend of a friend of a friend who could do it for ten percent of the amount on the land office paper.We both paid 5 percent and it happened whithin one day....shhh

[Ratsima]

I really don't have any confidence that Bangkok Bank could sort this out. After all, it took me nearly seven years to get Internet Banking from them.

I've thought of a better solution. Between now and the time the actual transfer takes place (15 months?), I will live on the money I have saved here and leave all my current income in the US. When transfer time comes I will have more than enough in US banks to cover the condo cost. I'll transfer it here in one lump sum, get the required Foreign Exchange Certificate and be done with it. No double transfers or flimflam required.

[skippybangkok]

Several years ago a guy I knew was working here in Thailand making lots of money, and wanted to buy a condo for 8m, but could not get the 'certificate' because the money was earned here. His personal assistant connected him with a 'Chinese underground' bank. He gave the bank the 8m,..24 hours later 8m showed up in his account in the USA...he transferred the money from the USA to Bangkok Bank, and got his certification. There were fees of course. Apparently this is done in mass daily all over Asia/the world.

In the book entitled 'Lords of the Rim', they state that this 'black market' system is the second largest financial system in the world.

Unable to offer any further details.

The law is the law. Unfortunately not many people know it.

My lawyer verbally beat up the bank manager in front of every one, until she called HQ and confirmed.

They don't want to though and will resist.

[rayongchelsea]

Look at the other thread on buying a condo and look at the comments of how to use a money exchange office. Most estates have relationships with them. A few thousand baht enough..5% as quoted is insane.

[Ratsima]

this is just another crazy law to make it difficult for us farangs... thais can buy land in any country the locals can, i mean civilized (usa/europe)

You have to remember that in the West we're trained to question stupidity. In Thailand you're trained to lie down and let it trample you.