Buying A Condo Without Certain Requirements

[ThaiTony2]

I have stayed/ lived in Thailand for almost 2-years and I would like to purchase a condo in CM. However, I have only 1-million baht in my Thai bank account and would have to withdraw additional funds using my ATM from my USA account.

Here is my dilemma:

I hear that there is a requirement that when transferring funds to Thailand for a condo purchase that you must tell your bank to indicate that the funds being transferred are for the purpose of purchasing a condo in Thailand.

One issue is that I'm already here and not outside of Thailand and don't have plans to travel back to America to personally transfer funds. My bank in USA will not do a transfer without me being physically there.

My real problem is:

I do not have any specific wording on any documentation to show/ meet this apparent requirement since my current funds in Thailand were initially not intended to purchase a condo. The addition million to withdraw using ATM will only provide me with the transaction receipts.

Question: Is there any way that I can legally purchase a condo without the "specific wording" that is apparently a requirement for the Land Office?

Any experience where you can assist me would be greatly appreciated.

[Chicog]

You might be able to circumvent the law but you'd only expose yourself to unnecessary risk by doing so so.

Why would you even consider it?

[Thighlander]

buy a cheapie.....i think under 500K no need for bs. Or, put 450K down and get a loan.

[hellodolly]

Not sure but don't you have to state the reason for any kind of transfer that big?

[SamSipEt]

Check with a lawyer but I think that the wording on the transfer of funds is only of relevance if you want to transfer the proceeds of any future sale back out of Thailand.

To put another way I think that you can use your current cash and extra funds withdrawn from an ATM to buy a condo without any complications at all.

At some point in the future you can sell the condo and the proceeds of the sale will go into your Thai bank account (usually via a bankers draft) without problem. You can then spend this money as you see fit but may have a problem transferring the cash back home depending on the restrictions in place at the time of the sale.

Given that your original post suggests that you are purchasing a cheap unit (a little over a million baht) then any cash realised from a future sale should be easily moved out of Thailand if that is what you want to do.

To repeat myself check with a lawyer and/or your bank and see what the limits are for transferring cash out of the country. No need to say where the cash came from just ask the hypothetical question of "what if I had a couple of million baht in my account that I want to transfer to...."

[Suradit69]

My bank in USA will not do a transfer without me being physically there.

You can't transfer money to Thailand or you can't transfer any money anywhere?

Assuming they would allow you to make domestic transfers, check to see if your Thai bank has a branch in the US to which you can transfer money. Bangkok Bank has a branch in NY and a transfer to them from another US bank is a domestic transfer.

Other than your bank, do you have money with a broker or an investment company like Vanguard or Fidelity? They might make a transfer for you. Vanguard has been very helpful for me.

Or can you issue a check to someone, a family member?, in the US who can make a transfer for you?

As SamSipEt says, the only legal issue would arise if you eventually sell the condo and want to send the proceeds out of Thailand, but it seems that drawing money from an ATM to buy a condo is a somewhat torturous way to go about it.

Edited April 13, 2013 by Suradit69

[CMweb]

Even if you would own a condo and sell it, by law you must transfer the money out of Thialand and then in again, then get a certivicate / declaration from the bank that the money comes from out of Thialand.

This is the last information from the land office we have from our last sale, 2 weeks ago where a guy sold his condo and like to purchase another one.

Go to the land office, there are guys who speak English, just ask and you will find out what to do.

[USNret]

"My bank in USA will not do a transfer without me being physically there." Get another bank; this is unacceptable.

[Arkady]

"My bank in USA will not do a transfer without me being physically there." Get another bank; this is unacceptable.

Most banks will accept a written instruction to make an overseas remittance. Often, if over US$20k or so, they will call the customer to confirm the instruction is real. Some banks will make overseas remittances by internet, if you set up the payee's account as a beneficiary in advance which can usually be done on line too. I've never heard of an outright refusal but high street banks in the US are pretty hopeless about anything international.

[Thighlander]

I wired from Fidelity to Bangkok Bank, and there were no shortcuts. It was a TT. Sending it back, I just made the amounts smaller than 600K, so there was no need for BOT approval. There was a one day delay on the return.......most likely intentional, as I had the Fidelity Rep live on the phone at Bangkok Bank, to make sure it was done correctly. They even tried to re-charge me 300 thb on the second attempt, at the KSK branch. I told her she was 100% out of her mind.

[Thighlander]

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/TransferingFunds/TransferringIntoThailand/ReceivingFundsfromUSA/Pages/ReceivingFundsfromUSA.aspx

I stand corrected on something relatively new. But to the OP, I had my dad do it, and I was able to get fidelity to send a check in my name to his address....and he just deposited it.

[Langsuan Man]

Question: Is there any way that I can legally purchase a condo without the "specific wording" that is apparently a requirement for the Land Office?

NO, there is no way to legally buy a condo in the farang quota without an Foreign Exchange Certificate issued by a Thai Bank. The certificate will only be issued if the funds come from off shore. Stop being fixated on the "specific wording" requirement of the Land Office

If you want to buy a condo in the Thai quota then you will have to form a company and purchase it that way, and then an exchange certificate is not needed, but then again, you don't own the condo, the company does. The land office will issue the chanote in the company name

The condominium act covers this and unfortunately there is no way around it since in order to comply with the law the Land Office requires the Foreign Exchange Certificate be issued by the bank and attached to the chanote and the Thai bank will only issue the certificate if all the funds come from off shore sources

[Thighlander]

bet me a rack of ping pong balls at Spotlight.......there is NO certificate necessary for smaller purchases......like these: http://www.ddproperty.com/en/property/condo-in-muang-chiang-rai-chiang-rai-623012 it's next door to the land office.........

[OneZero]

bet me a rack of ping pong balls at Spotlight.......there is NO certificate necessary for smaller purchases......like these: http://www.ddproperty.com/en/property/condo-in-muang-chiang-rai-chiang-rai-623012 it's next door to the land office.........

I would be very surprised if no money transfer certificate (from a Thai bank) is required. I'm not an expert of course. If really true, that would be good information for potential buyers (as well as the folks trying to find a buyer).

Can you please provide us with the legal reference that authorizes that (no money transfer certificate necessary).

Edited April 14, 2013 by OneZero

[Thighlander]

bet me a rack of ping pong balls at Spotlight.......there is NO certificate necessary for smaller purchases......like these: http://www.ddproperty.com/en/property/condo-in-muang-chiang-rai-chiang-rai-623012 it's next door to the land office.........

I would be very surprised if no money transfer certificate (from a Thai bank) is required. I'm not an expert of course. If really true, that would be good information for potential buyers (as well as the folks trying to find a buyer).

Can you please provide us with the legal reference that authorizes that (no money transfer certificate necessary).

http://www.chiangmairealty.com/buyingcondo.htm #6.........banks will only issue Thor Tor 3, if the remitted amount is more than 20,000 USD.

[hml367]

_{bet me a rack of ping pong balls at Spotlight.......there is NO certificate necessary for smaller purchases......like these: http://www.ddproperty.com/en/property/condo-in-muang-chiang-rai-chiang-rai-623012 it's next door to the land office.........}

_{I would be very surprised if no money transfer certificate (from a Thai bank) is required. I'm not an expert of course. If really true, that would be good information for potential buyers (as well as the folks trying to find a buyer).}

_{Can you please provide us with the legal reference that authorizes that (no money transfer certificate necessary).}

_{http://www.chiangmairealty.com/buyingcondo.htm #6.........banks will only issue Thor Tor 3, if the remitted amount is more than 20,000 USD.}

_{That information may be old.}

_{This is from a more current advice page... yes... advice.}

Is there any limitation as to the amount of foreign currency you may bring in?

You may transfer foreign currency into Thailand or bring it in cash without any limit.

However if you bring into Thailand in cash an aggregate amount of foreign currency exceeding USD 20,000 or its equivalent you must declare it to a customs officer and it you transfer foreign currency exceeding USD 20,000 or its equivalent you will need to file a Foreign Exchange Transaction Form (“FETF”).

Note: if the cash you are bringing into Thailand is to purchase a condominium do not forget to declare it with the custom officer even if the amount is below USD 20,000. Indeed at the time when you transfer the condominium you will have to justify that you have paid the total amount of the condominium you are purchasing in foreign currency. Therefore you will need the receipt from the custom officer.

_MSPain

[ThaiTony2]

Thank you all for your advise. It is much appreciated.

[scd]

You need the letter from the bank no matter the amount, big or small.