Question about bringing in money to buy a condo

[Senechal]

I understand that when money is wired into Thailand for the purposes of buying a condominium, the money must be earmarked as being for that purpose. But my question is: Do you have to then buy a condominium immediately? Or could one (for the sake of argument) wire money to a Thai account and purchase property one year later.

[Delight]

Suggest that you open an account specifically for that purpose.The record of in coming funds required to support the Foreign Exchange Certificate ,issued by your bank will then be easy to identify.

Further suggest that you discuss this topic with your bank.

[thailandtony77]

If buying in foreign name must be transferred in foreign currency (do not convert to Thai baht and then send over - must send over as foreign currency and Thai bank then converts to baht. I have done a little research on this and best to state when transferring that the purpose is to buy condo. A far as I am aware there is no time limit as you could be buying off plan which could involve instalments and actual hand over may be a few years into the future.

[SpokaneAl]

Lat year and into this year I sent over a fairly substantial amount of money as we got our house built. The money was sent to my sister-in-law's bank account and we were never questioned concerning the amounts nor the purpose.

Edited October 26, 2013 by SpokaneAl

[avander]

Last year I transferred a considerable amount in to my wife's Thai bank account I did it in amounts under 2mB so as not to attract scrutiny of the Thai authorities who required more paperwork in the case of amounts over that. I transferred via a FX facility company like World First or Ozforex as their rates are very competitive. The transactions all have a record on them as being for a property purchase and I believe that is sufficient should I wish to take equivalent amounts out of the country later, not that I have any plans to. I am living in LOS now and did similar again before moving recently to fit out the property.

[finnomick]

Suggest that you open an account specifically for that purpose.The record of in coming funds required to support the Foreign Exchange Certificate ,issued by your bank will then be easy to identify.

Further suggest that you discuss this topic with your bank.

When I was going to buy my condo, I transferred the funds from my UK account to my Thai bank account. The head office of the Thai bank phoned me to tell me the day's exchange rate and would I like the funds depositing in my account then or later ( presumably at a time when maybe the exchange rate would be better ). They also asked me if the money was for a condo purchase in order for my branch to prepare the 3T or TTT forms one requires at the Land Registry Office when the condo is transferred into your name. I cannot remember if the TTT has a time limit on it because that wasn't relevant to my purchase but what my branch manager asked me was if I needed more than one TTT if I was making several purchases. As Delight writes, have a quick chat to your bank manager -- he'll be only too happy to oblige when you tell him of the size of your deposit !

[shaurene]

Wire the money to your account and use it when you want or bring a bank cheque with you and deposit it in your account. I have wired a lot of money over the years and not stating it for anything.

[TallGuyJohninBKK]

The issue isn't about whether one has or doesn't have the ability to wire money into Thailand. Of course, farang can wire money here into their Thai bank account.

The issue is, handling the wire transfers in the correct procedural manner that you want to do for any property purchase. Following the correct procedure, supposedly, means it would be easier for you to remove those same funds from Thailand in the future, should you ever decide to sell and move out.

In that scenario, you want the proper bank and government documents showing the funds were brought in from abroad and used for a property purchase.

[khunPer]

To my knowledge, the amount need to equivalent to minimum 20,000 US$. You need to transfer to a Thai bank account (in your name). You need to transfer in foreign currency, not Thai baht. When the money arrives, ask the bank to make a form to register the transfer at the National Bank and the purpose be to buy condo or property. You will later, some days or a week later, recieve a copy (sometimes photocopy) of the form, which you shall keep. If you later wish to transfer same amout of out Thailand, you shall need to present the form (believe there is a limit of amounts equivalent to 20,000 US$ which may be transferred out, without prior permission or registration).

Edit: To my knowledge, you do not need to buy anything immediately – I did transfers for building a house years in advance, due to a good Thai baht exchange rate. It is the registration form, which seems to be the important part.

Edited October 26, 2013 by khunPer

[Brasilouro]

You can spend the money you transferred as and when you like . But note this when you receive the money in Thailand it needs to be in your currency and changed in to baht on arrival unless you have a foreign currency account . It is very import you tell the bank the money is for property purchase as you will recive a tt3 form with property purcase wrote on it . witch you need this form to regerster the condo at the land regerster and at a later date the copy of the tt3 will help you transfer the money out of Thailand if or when you sell your condo . Hope this helps

[SDM0712]

Usually the advice I give to my buyers is don't t transfer the money until you need to. I normally suggest that they set up an account prior to this for that purpose, although some still insist in sending the entire amount to my client account, I must have a trustworthy face! Generally speaking an international transfer can be done in 24 hours, although for some reason HSBC in Dubai seems to take about a week, whereas HSBC in China or the UK can do within a day.

If you are buying a resale property that has an outstanding mortgage on it I would normally suggest that you open a bank account with the same bank that the seller has his mortgage with. That way when all parties turn up at the Land Department to transfer the property you can give his bank representative a draft that will be accepted as cleared funds as it is drawn on the same bank and they will release the Chanute and the property can be transferred immediately. I don't go to the Land Department any more as it gives me a headache, better to send my Thai staff who deal with transfers all the time !! For anyone that hasn't had this joy, on the day of transfer normally attending for each transfer will be the seller, his bank representative, (if he has a mortgage), his lawyer (if he uses one), the buyer, the buyers bank representative (if he is using a mortgage), his lawyer (if he is using one) and one of my staff. Someone is best advised to turn up at about 8am and wait to get a queue ticket or you might not been seen that day.

Generally speaking I imagine most people here will be buying in company names or foreign freeholds and in that case I would advise my buyers to let their lawyer sort the numbers out and send the money to their client account just before transfer, but really unless a buyer thinks they have agreed an amazing exchange rate there is no reason to transfer the money before you need.

Regards

Stephen

Edited October 26, 2013 by SDM0712

[KittenKong]

Lat year and into this year I sent over a fairly substantial amount of money as we got our house built. The money was sent to my sister-in-law's bank account and we were never questioned concerning the amounts nor the purpose.

Of course not. You weren't buying a farang name condo. No one cares how you pay for your house as in practice it all amounts to a gift to some Thai person anyway.

For a farang name condo you have to show that the money was imported (or earned here with a work permit).

[KittenKong]

Usually the advice I give to my buyers is don't t transfer the money until you need to. I normally suggest that they set up an account prior to this for that purpose, although some still insist in sending the entire amount to my client account, I must have a trustworthy face!

Hmm. I wouldn't transfer money to a third-party account in Thailand if my life depended on it. There are just too many crooks here (and many of them work in real estate).

I also think that it could possibly cause problems down the line getting the foreign exchange certificate or if and when the time comes to re-export the money.

I would say always open a bank account in your sole name and only transfer money directly to that account. Anything else is folly.

If you are buying a resale property that has an outstanding mortgage on it ....

What proportion of farang-name condos sold in Thailand have a mortgage on them? Not one of the resale units I have ever seen in Pattaya has had a mortgage on it. I suppose it may be different in Bangkok.

[Maestro]

Last year I transferred a considerable amount in to my wife's Thai bank account I did it in amounts under 2mB so as not to attract scrutiny of the Thai authorities who required more paperwork in the case of amounts over that. I transferred via a FX facility company like World First or Ozforex as their rates are very competitive. The transactions all have a record on them as being for a property purchase and I believe that is sufficient should I wish to take equivalent amounts out of the country later, not that I have any plans to. I am living in LOS now and did similar again before moving recently to fit out the property.

Were you remittances to your wife's account for a condo purchase with the land title deed in your name? If they were not, your post is not relevant to this topic.

[Maestro]

To my knowledge, the amount need to equivalent to minimum 20,000 US$. You need to transfer to a Thai bank account (in your name). You need to transfer in foreign currency, not Thai baht. When the money arrives, ask the bank to make a form to register the transfer at the National Bank and the purpose be to buy condo or property. You will later, some days or a week later, recieve a copy (sometimes photocopy) of the form, which you shall keep. If you later wish to transfer same amout of out Thailand, you shall need to present the form (believe there is a limit of amounts equivalent to 20,000 US$ which may be transferred out, without prior permission or registration).

Edit: To my knowledge, you do not need to buy anything immediately – I did transfers for building a house years in advance, due to a good Thai baht exchange rate. It is the registration form, which seems to be the important part.

There is no minimum limit for remittances to Thailand for the purchase of a condo in the the name or the remitter's (sender's) name.

There is a minimum of USD 50,000 or the equivalent in another foreign currency for the Foreign Exchange Transaction Form (FETF), but this form is not essential for the condo's registration at the Land Registration Office. If the remittances are for smaller amounts, other evidence of bringing the money from abroad is acceptable, eg the bank's credit advice, which is usually an unsigned document but upon request the bank will provide a signed statement for this purpose.

FETF in PDF format: FETF Foreign Exchange Transaction Form USD 50k.pdf

[poooket]

Lat year and into this year I sent over a fairly substantial amount of money as we got our house built. The money was sent to my sister-in-law's bank account and we were never questioned concerning the amounts nor the purpose.

So it was a gift then! Nothing in your name,so no worries.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[SDM0712]

Usually the advice I give to my buyers is don't t transfer the money until you need to. I normally suggest that they set up an account prior to this for that purpose, although some still insist in sending the entire amount to my client account, I must have a trustworthy face!

Hmm. I wouldn't transfer money to a third-party account in Thailand if my life depended on it. There are just too many crooks here (and many of them work in real estate).

I also think that it could possibly cause problems down the line getting the foreign exchange certificate or if and when the time comes to re-export the money.

I would say always open a bank account in your sole name and only transfer money directly to that account. Anything else is folly.

If you are buying a resale property that has an outstanding mortgage on it ....

What proportion of farang-name condos sold in Thailand have a mortgage on them? Not one of the resale units I have ever seen in Pattaya has had a mortgage on it. I suppose it may be different in Bangkok.

I couldn't agree more and wouldn't ever transfer these kind of sums to a third party account and in fact it is a great inconvenience for me with the limited information I get from the Thai banks in creating problems with assigning international transfers to buyers when in many cases the sums come over in installments. However we have only been active in Thailand for a relatively short time although my UK arm is long and has a good international reputation we seem to be trusted to handle large sums ! I must also ask myself what kind of people transfer such massive sums so freely and if anyone would want to upset them !! But that's another story.

Condos with mortgages on - I can't speak for Pattaya as currently we only have offices in Phuket, but so far not a single one. However banks are lending on them so I am sure that I will sell one at some point. We tend to come across this with the sale of houses owned by Thais.

Stephen

Usually the advice I give to my buyers is don't t transfer the money until you need to. I normally suggest that they set up an account prior to this for that purpose, although some still insist in sending the entire amount to my client account, I must have a trustworthy face!

Hmm. I wouldn't transfer money to a third-party account in Thailand if my life depended on it. There are just too many crooks here (and many of them work in real estate).

I also think that it could possibly cause problems down the line getting the foreign exchange certificate or if and when the time comes to re-export the money.

I would say always open a bank account in your sole name and only transfer money directly to that account. Anything else is folly.

If you are buying a resale property that has an outstanding mortgage on it ....

What proportion of farang-name condos sold in Thailand have a mortgage on them? Not one of the resale units I have ever seen in Pattaya has had a mortgage on it. I suppose it may be different in Bangkok.

I couldn't agree more and wouldn't ever transfer these kind of sums to a third party account and in fact it is a great inconvenience for me with the limited information I get from the Thai banks in creating problems with assigning international transfers to buyers when in many cases the sums come over in installments. However although we have only been active in Thailand for a relatively short time although my UK arm is long established and has a good international reputation we seem to be trusted to handle large sums ! I must also ask myself what kind of people transfer such massive sums so freely and if anyone would want to upset them !! But that's another story.

Condos with mortgages on - I can't speak for Pattaya as currently we only have offices in Phuket, but so far not a single one. However banks are lending on them so I am sure that I will sell one at some point. We tend to come across this with the sale of houses owned by Thais.

Stephen

Edited October 27, 2013 by SDM0712

[iamariva1957]

My advise.... do not do it! RENT! It is easier and you are not plugged in for anything permanent. Then there are the rules and the other hoops you will be forced to jump through. Let your money work for you and invest it or leave it in your home country at a far better interest rate than you will get here as a farang.

[MMarlow]

My advise.... do not do it! RENT! It is easier and you are not plugged in for anything permanent. Then there are the rules and the other hoops you will be forced to jump through. Let your money work for you and invest it or leave it in your home country at a far better interest rate than you will get here as a farang.

Thankfully no-one was asking for your clearly professional advice.

[Dork]

According to Section 5 of the Condominium Act (2008) as long as the amount of funds used to purchase the unit/units is not less than the purchase price of the intended purchase, they can come from any of the following 3 sources;

1 - Foreign exchange remitted from abroad

2 - Funds held in a non-resident Baht account

3 - Funds held in a foreign currency deposit account

The Act doesn't stipulate any time limits but whether, in practise, a land department officer might hold an arbitrary opinion about what is a reasonable time frame for a FX remittance, I have no idea. But certainly in the case of 3 - Funds held in a foreign currency deposit account, there would be no time limit since the funds only need to be shown as having been withdrawn from that account.

[fire and ice]

If buying in foreign name must be transferred in foreign currency (do not convert to Thai baht and then send over - must send over as foreign currency and Thai bank then converts to baht. I have done a little research on this and best to state when transferring that the purpose is to buy condo. A far as I am aware there is no time limit as you could be buying off plan which could involve instalments and actual hand over may be a few years into the future.

Only an utter IDIOT would let their home bank convert to Baht in any case.

Non-Thai banks will rob you blind with the exchange rate.

Thai banks will give you a great rate.

[avander]

Last year I transferred a considerable amount in to my wife's Thai bank account I did it in amounts under 2mB so as not to attract scrutiny of the Thai authorities who required more paperwork in the case of amounts over that. I transferred via a FX facility company like World First or Ozforex as their rates are very competitive. The transactions all have a record on them as being for a property purchase and I believe that is sufficient should I wish to take equivalent amounts out of the country later, not that I have any plans to. I am living in LOS now and did similar again before moving recently to fit out the property.

Were you remittances to your wife's account for a condo purchase with the land title deed in your name? If they were not, your post is not relevant to this topic.

Apologies if my post was not relevant?

I was recounting my wife and my experiance in sending funds to Thailand for a property purchase and then a subsequent fitout.

To clarify, in our case we purchased a house shop. The purchase was in my wife's name and not knowing what the future may bring we wanted to make sure we could send the proceeds back again should we decide to sell in future. We did some research in that regard.

[Senechal]

We wanted to make sure we could send the proceeds back again should we decide to sell in future.

You misspelled "she" 3 times. ; )

Edited December 2, 2013 by Senechal

[avander]

We wanted to make sure we could send the proceeds back again should we decide to sell in future.

You misspelled "she" 3 times. ; )

Cynic. :-P