les1 Posted June 16, 2014 Share Posted June 16, 2014 (edited) Hi everyone, Firstly I am English & I am considering buying a Condo in Chiang Mai. I already own a studio. However I have been advised that I can make the payment for the Condo to the English owners into their UK bank account in UK pounds. As long as I keep the receipts of transfer I will be OK if I sell later. Can anyone enlighten me on this because I thought that all purchases had to be brought into Thailand in foreign currency & exchanged there for the purchase. Thank you in anticipation... Edited June 16, 2014 by metisdead Please do not post using all caps. Topic title edited to remove all caps. Link to comment Share on other sites More sharing options...
Thighlander Posted June 16, 2014 Share Posted June 16, 2014 Good question. I know there are ways around the wire letter, with the right attorney, connections, real estate agent, or combination of the three. I know someone, who bought a relatively cheapie, and did it with the old Aeon ATMs. It was less of a hassle than I've heard people having getting a yellowbook. Let us know what you find out, because that would be a cost saving arrangement, for someone returning to their home country and selling it to someone from that same country. Link to comment Share on other sites More sharing options...
Popular Post MadMac Posted June 16, 2014 Popular Post Share Posted June 16, 2014 You can buy it but you cannot transfer it at the land office. To do the latter you need a paper called Foreign Exchange Transaction form (FET) from your bank, stating the funds have been transferred in foreign currency into Thailand and exchanged at a rate to be stated on the paper into THB. 3 Link to comment Share on other sites More sharing options...
mamborobert Posted June 16, 2014 Share Posted June 16, 2014 (edited) Might not be the best forum for this but I am in agreement with MadMac, and indeed with your original thoughts. Funds must be of an amount at least equivalent to the purchasing price of the condominium, or the condominium appraisal price; and - remitted from overseas; and - brought into Thailand; and - exchanged in Thailand; and - either be from a bank account in your own name; or transferred to a bank account in Thailand in your own name. I understood that without this you could not get the bank notification and thereby arrange property transfer. Either way another forum (other than CM) may be more appropriate or offer other viable options. Edited June 16, 2014 by mamborobert 1 Link to comment Share on other sites More sharing options...
Chicog Posted June 16, 2014 Share Posted June 16, 2014 Continuing on... I have some money that I *may* want to use for a condo purchase. I don't want to bring a large amount of cash through customs. What other options do I have for this purpose. Can you use a Banker's draft? Should it be in Thai Baht or foreign currency? Other options? Link to comment Share on other sites More sharing options...
Thighlander Posted June 16, 2014 Share Posted June 16, 2014 (edited) It's also going to depend on which Amphur, similar to how rules vary by immigration office. For small amounts; some never even asked to see the letter. Let's look at how much the round-trip would cost at BKK Bank for 40,000 USD to round trip it right when you receive it....(but more than 20,000 takes more time),,,SO you do a free ach to BKK NY....now you have 39,990....it exchanges to 1,289,277.60 you pay the max 500 to bkk bank thai leaves you 1,288777.60 you get your letter, and wire it back....you pay 400 thb leaves you with 1,288377.60 and then you sell thb at 32.49 (you paid 32.24) your account at home doesn't charge to receive, and you have 39,654.58 usd...so it cost you 345.52 usd or approx. 11,000 thb.......but in the several days it takes to get it turned around you could lose 1% (worst case), or you could gain 1%...in which case your cost would vary between 0 and 22,000 thb. I think you could find a lawyer and do the whole thing for you while you guys stay seated with mouths closed, for about 7000, with them knowing you took a short-cut. Edited June 16, 2014 by Thighlander Link to comment Share on other sites More sharing options...
MadMac Posted June 16, 2014 Share Posted June 16, 2014 You need someone to fill the FET for you, this is usually a bank. The FET in original goes to the finance authorities, you need a copy stamped from the bank. Some money changer may be able to do it as well, but you need to prove that you transferred the money in foreign (!) currency into Thailand and exchanged it at a given rate. Without both details (amount and rate) the land office will not transfer the title. I had it happening that they forgot the exchange rate, land office refused the transfer and I had to go back to the bank for this. Alternatively, if you work in Thailand, get paid and pay tax on your income, this can also be used for the purchase of a condo in your name. Link to comment Share on other sites More sharing options...
les1 Posted June 16, 2014 Author Share Posted June 16, 2014 Thanks for the various information. It is a real estate agent that has told me that I can transfer the GBP pounds into a UK bank as long as I keep the details of the transfer. I am obviously a bit wary because as you all say on buying my first I was told it had to come into Thailand in Foreign currency. Link to comment Share on other sites More sharing options...
MadMac Posted June 16, 2014 Share Posted June 16, 2014 Thanks for the various information. It is a real estate agent that has told me that I can transfer the GBP pounds into a UK bank as long as I keep the details of the transfer. I am obviously a bit wary because as you all say on buying my first I was told it had to come into Thailand in Foreign currency. As I wrote, you can buy it but you will not be able to transfer it. The agent gets his commission and you sit on property you do not own and you can not sell. So what's the point? Link to comment Share on other sites More sharing options...
les1 Posted June 16, 2014 Author Share Posted June 16, 2014 This maybe of interest to some of you - I do not have a FET-form? For the exchange of foreign currency in amounts less than 50,000 USD the bank does not need to prepare a FET form and therefore will not issue a FET form copy. In this case foreigners can request from the bank a confirmation letter for the transfer of foreign currency and exchange into Thai baht. This letter contains the same information as the FET form (e.g the transferred amount in foreign currency, the exchanged amount in Thai Baht, the name of money sender, the name of money receiver, the purpose of transferring the money) and can be used as proof of compliance with section 19 of the Condominium Act. This proof must be submitted to the Land Department when registering foreign ownership. I do not know if this applies when the Land Office valuation is below $50,000.00 US Dollars even if your purchase price is higher . Link to comment Share on other sites More sharing options...
Popular Post arunsakda Posted June 16, 2014 Popular Post Share Posted June 16, 2014 (edited) Be careful this could be a common real estate scam where an "owner" or "agent" shows a property that may not even be for sale. "Just wire the money to my UK bank, we will then meet at the land office to process the transfer" . You could be left with nothing but a transfer receipt. Get FET documentation even if you have to round trip it. I did so for a condo that was well below 50KUSD value and BB prepared the FET form. Don't take any shortcuts and do not wire any money to the owners in or out of Thailand unless they sign purchase agreement prepared by a competent barrister. The other option is to meet at the land office with the cash. Edited June 16, 2014 by arunsakda 3 Link to comment Share on other sites More sharing options...
scd Posted June 17, 2014 Share Posted June 17, 2014 As stated above, you need a letter from a Thai bank, saying that funds were transferred in to Thailand for the purpose of purchasing a property. The amount transferred in must be equal to or more of the valuation of the property. If you are still confused, just walk in to a Thai bank and tell them that you wish to buy a property and need a letter for the Land Office. The bigger branches do this all the time, and no exactly what to do/prepare. Also a word on agents/brokers, around the world, just not Thailand. A percentage of them will say anything to get the sale through, and thus gain their commission, regardless of the law. It's a sad fact of life. The agent that advised you previously has advised you incorrectly. Link to comment Share on other sites More sharing options...
iancnx Posted June 17, 2014 Share Posted June 17, 2014 (edited) Yup, beware! Hire a lawyer! Edited June 17, 2014 by iancnx Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 Yup, beware! Hire a lawyer! That's BS. You don't need a lawyer to buy a condo, it's a straight forward process. Just follow the rules, it's written a thousand times in the internet. Link to comment Share on other sites More sharing options...
Thighlander Posted June 17, 2014 Share Posted June 17, 2014 1) realtors I've seen take their commissions at the land office; after the deal is done. 2) As I stated before, I know someone that got the money through multiple ATM withdraws, and while he did encounter problems the first visit, (he showed them the slips that were clear it was from a foreign bank); he was able to later complete the transaction with a competent agent, and he has the Chinot..case closed. Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 Sure, as said already, depends on the land office and the connections of the agent. May work somewhere in the pampas, where the agent pays some teamoney after taking a commission. It certainly wont work in Bangkok. In CNX I believe corruption will be eradicated as well soon too. Link to comment Share on other sites More sharing options...
iancnx Posted June 17, 2014 Share Posted June 17, 2014 (edited) Yup, beware! Hire a lawyer! That's BS. You don't need a lawyer to buy a condo, it's a straight forward process. Just follow the rules, it's written a thousand times in the internet. You my dear chap are very much mistaken. This thread is about buying a condo that is ANYTHING BUT straight forward. Edited June 17, 2014 by onthedarkside insulting remark removed Link to comment Share on other sites More sharing options...
iancnx Posted June 17, 2014 Share Posted June 17, 2014 You need someone to fill the FET for you, this is usually a bank. The FET in original goes to the finance authorities, you need a copy stamped from the bank. Some money changer may be able to do it as well, but you need to prove that you transferred the money in foreign (!) currency into Thailand and exchanged it at a given rate. Without both details (amount and rate) the land office will not transfer the title. I had it happening that they forgot the exchange rate, land office refused the transfer and I had to go back to the bank for this. Alternatively, if you work in Thailand, get paid and pay tax on your income, this can also be used for the purchase of a condo in your name. A money changer filling in an FET. You are on cloud cuckoo land. Suggest your advice is unsound! Seems you are not an expert at all by your own admission here. Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 @iancnx I said I don't know if a money changer may do that. Remember that some money changers became full banks, I think Kiatnakin is an example. So they may be able to follow the process through. And no, you don't need a lawyer. I believe lawyers rather complicating the process and increase cost. If you are unable to do your own due diligence you should not invest in property. Link to comment Share on other sites More sharing options...
iancnx Posted June 17, 2014 Share Posted June 17, 2014 Thanks for the various information. It is a real estate agent that has told me that I can transfer the GBP pounds into a UK bank as long as I keep the details of the transfer. I am obviously a bit wary because as you all say on buying my first I was told it had to come into Thailand in Foreign currency. As I wrote, you can buy it but you will not be able to transfer it. The agent gets his commission and you sit on property you do not own and you can not sell. So what's the point? So why are you giving conflicting advice. The buyer needs to make sure he has the title and it is transferable in the future. As you said the process is not difficult, and if you follow the rules you don't need a lawyer, but, here we have an agent pretending a funds transfer in UK sterling off shore will be ok. That is barking mad and in this case he needs legal advice. I am sure if it was your cash you would not be trusting the word of an agent.! 1 Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 See my previous post. Obviously the buyer has taken wrong advise from an agent or lawyer. Link to comment Share on other sites More sharing options...
iancnx Posted June 17, 2014 Share Posted June 17, 2014 See my previous post. Obviously the buyer has taken wrong advise from an agent or lawyer. I disagree. The buyer has come here to ASK advice from those with experience. He is wary of the agent's enthusiasm to strike a sterling transaction off shore. Your disparaging remark and accusation of BS was just so thoroughly mistaken dear chap! 1 Link to comment Share on other sites More sharing options...
Chicog Posted June 17, 2014 Share Posted June 17, 2014 @iancnx I said I don't know if a money changer may do that. Remember that some money changers became full banks, I think Kiatnakin is an example. So they may be able to follow the process through. And no, you don't need a lawyer. I believe lawyers rather complicating the process and increase cost. If you are unable to do your own due diligence you should not invest in property. If you can't read or speak fluent Thai, then you are opening yourself to all kinds of abuse if you don't have a lawyer. Personally I'd rather not risk throwing my money away, but that's just me. Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 Fair enough, if you see a real benefit in it, then go for it. I can't read or write Thai, but I don't need a lawyer Link to comment Share on other sites More sharing options...
Chicog Posted June 17, 2014 Share Posted June 17, 2014 No, most people don't until they find out they did. Link to comment Share on other sites More sharing options...
MadMac Posted June 17, 2014 Share Posted June 17, 2014 Sure, lawyers, real estate agents, insurance agents, car agents, education agents, travel agents...god knows.... It's all good for the premium farang Link to comment Share on other sites More sharing options...
les1 Posted June 17, 2014 Author Share Posted June 17, 2014 It's interesting to hear all of the opinions & really I go along with everyone to a point. So far I have established that money has to be brought into Thailand along with FET. I am OK with that. This lady I had not understood her situation 100% she is applying for administrative rights through the courts to sell her deceased fathers condo. So I understand that if she does not get this for any reason she will not be able to do anything. Unless she gets this approval the deal would not go ahead. I do not think that the Land Office could do anything if she cannot sell it. If anyone has a different opinion on this I would be interested to know. Do you have Power of Attorney in Thailand not for me but for her, she would prefer not to return to Thailand to complete the deal in November when I return. So far if she gets her admin rights she will go along with my Agent to sign all documents subject to a contract to the Land Office for a sale to be completed by myself in the meantime no money will pass directly to her. Any thoughts would be appreciated........Kop khun Kha Link to comment Share on other sites More sharing options...
Thighlander Posted June 18, 2014 Share Posted June 18, 2014 Properties should not be listed for sale, unless the seller has the right to sell them at the listed price. It's happened to me twice in the last year, 1) bank made a deal with me to sell one that was taken back, and I agree to close by a certain date or pay a 100 usd per day penalty. A day before closing; they disclose a 7500 USD outstanding debt to the HOA that will have to make its way through the courts. 2) Seller had property listed for 60K, I said 50K, and she sold it to someone else for 55K. But...she had to pay back her loan modification upon sale, and basically she owed 70K, and didn't have the money to make up the difference....not hers to sell. Both times I wasted a lot of time and money chasing this shiite down. Tell her to take a hike....5 or 6 months is a long time in real estate. What would be the penalty if she "can't produce." Someone dying in it does not really help values, either. Link to comment Share on other sites More sharing options...
MadMac Posted June 18, 2014 Share Posted June 18, 2014 We had that happen with a friend as well, someone moved to Australia, did not want to come back, power of attorney, did not get accepted by the landoffice....absolute headache. In the end they managed it though. In this case I'd agree to get a lawyer involved. Or back off and find another place. Link to comment Share on other sites More sharing options...
.png.3b3332cc2256ad0edbc2fe9404feeef0.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now