Incoming Condo Foreign Funds

[Pappiklon]

Would appreciate some feedback on bringing in Foreign Funds and Tor Tor 3 issuance. i've just put the deposit down on a condo in Bangkok which I will seriously refurbish. In order to pay the balance and do the refurb I will be transferring in an extra 2m baht £ sterling equivalent on top of the purchase price.

Firstly I read on another website that i need to transfer the funds in £sterling into a Foreign Currency account at my bank (£Sterling) in order to get the TT3 issued.I don't have a £sterling foreign currency account here, only a Thai Baht Savings Account, I am in the process of arranging the transfer into my Thai Baht Savings account right now, the funds arriving in Thailand as £sterling will be converted on arrival to Thai Baht, will Bangkok Bank issue a TT3 on the funds arriving in a Savings Account or do I have to halt the transfer and open the foreign currency account.

Secondly I have read on other posts that as long as i have a paper trail on the incoming funds and subsequent sale of property I will be able to take the funds back out of Thailand if I ever decide to sell up and leave, will my 2m refurb money be removable too.

Thanks in advance for your help.

[percy2]

Would appreciate some feedback on bringing in Foreign Funds and Tor Tor 3 issuance. i've just put the deposit down on a condo in Bangkok which I will seriously refurbish. In order to pay the balance and do the refurb I will be transferring in an extra 2m baht £ sterling equivalent on top of the purchase price.

Firstly I read on another website that i need to transfer the funds in £sterling into a Foreign Currency account at my bank (£Sterling) in order to get the TT3 issued.I don't have a £sterling foreign currency account here, only a Thai Baht Savings Account, I am in the process of arranging the transfer into my Thai Baht Savings account right now, the funds arriving in Thailand as £sterling will be converted on arrival to Thai Baht, will Bangkok Bank issue a TT3 on the funds arriving in a Savings Account or do I have to halt the transfer and open the foreign currency account.

Secondly I have read on other posts that as long as i have a paper trail on the incoming funds and subsequent sale of property I will be able to take the funds back out of Thailand if I ever decide to sell up and leave, will my 2m refurb money be removable too.

Thanks in advance for your help.

As I understand it only matters that the transfered funds are in GBP and not THB.

Even though it will be converted in to your THB savings account they will issue TT3.

I believe that you have to specify the reason for transfer at the time of transfer.

I also understand that once you have the TT3 and the condo is in your name you will not only be able to transfer 2mil out (or whatever you brought in) but also any increase in value your property has made.

On large amounts like this it would probably be worth paying a company like Sunbelt to check everything and advise.

Cheers

PS Find it mildly surprising to be recomending SB as originally I didn't like the tone of his posts. But over the years(?) I have come to appreciate his honest/unpushy advice and his rates seem very reasonable.

[hughden]

You don't need a foreign currency account; as long as the amount required comes from overseas you can transfer into a local Baht account. Worked for me anyway!

[tangoll]

I have similar questions that still need answers about the Tor Thor 3. This is what I know.

1. You must transfer non-baht foreign funds into your local bank baht account, and the incoming funds document must say something like "remittance of foreign funds for purchase of condominium unit." What is still unclear is whether the Tor Thor 3 must state the address of the condo unit to be purchased. I've heard different answers.

2. Once the funds have been received, converted, and deposited into your local bank account, in my case Bangkok Bank, I go to the head office on Silom Road, go up to first floor on escalator, punch #4 on the queue machine which is for incoming funds, and when your queue number comes up, get the bank incoming funds document. Then I go around the corner to the far end of the first floor where the actual TT3 document is issued to you with your name, account, amount of foreign funds, conversion rate into baht. Bring your passport and bank book with you. Just learn to say "Tor Thor Samm" and you will get the service you need.

A lawyer in Hong Kong with Thai property experience (Phuket) said at a seminar in HK that the TT3 is issued by Bank of Thailand and takes up to a week. By my experience, this is incorrect in Bangkok Bank's case because the bank issued me the TT3 and it took all of 45 minutes.

3. I understand when the time comes for transfer of property into your name at the Lands Department, you go there with the TT3's showing sufficient funds to cover the cost of purchase. It's unclear whether the TT3's must show the actual address of condo unit. Once the TT3's have been used, I'm still not clear whether excess baht funds over the cost of purchase is still available or not for use in another transaction. The used TT3's apparently need to be kept in the event the condo unit is sold and you wish to export funds from the sale. What is unclear is what amount can be exported, whether the amount of the sale, or whether only the amount covered by the original TT3's showing the imported funds.

4. If you are bringing in additional funds for renovation and other purposes not related to the actual purchase price/cost of condo unit, you might consider splitting the transfers into several parts, so that you have one or more TT3's sufficient for just the cost of the condo unit, and other TT3's which you can keep for other use if the need arises. Bangkok Bank will issue a TT3 so long as the incoming funds exceed US$20,000 or equivalent.

I will probably engage some local lawyer to help with my property transactions to make sure everything goes smoothly. But I've yet to find the right one.

[percy2]

I have similar questions that still need answers about the Tor Thor 3. This is what I know.

1. You must transfer non-baht foreign funds into your local bank baht account, and the incoming funds document must say something like "remittance of foreign funds for purchase of condominium unit." What is still unclear is whether the Tor Thor 3 must state the address of the condo unit to be purchased. I've heard different answers.

2. Once the funds have been received, converted, and deposited into your local bank account, in my case Bangkok Bank, I go to the head office on Silom Road, go up to first floor on escalator, punch #4 on the queue machine which is for incoming funds, and when your queue number comes up, get the bank incoming funds document. Then I go around the corner to the far end of the first floor where the actual TT3 document is issued to you with your name, account, amount of foreign funds, conversion rate into baht. Bring your passport and bank book with you. Just learn to say "Tor Thor Samm" and you will get the service you need.

A lawyer in Hong Kong with Thai property experience (Phuket) said at a seminar in HK that the TT3 is issued by Bank of Thailand and takes up to a week. By my experience, this is incorrect in Bangkok Bank's case because the bank issued me the TT3 and it took all of 45 minutes.

3. I understand when the time comes for transfer of property into your name at the Lands Department, you go there with the TT3's showing sufficient funds to cover the cost of purchase. It's unclear whether the TT3's must show the actual address of condo unit. Once the TT3's have been used, I'm still not clear whether excess baht funds over the cost of purchase is still available or not for use in another transaction. The used TT3's apparently need to be kept in the event the condo unit is sold and you wish to export funds from the sale. What is unclear is what amount can be exported, whether the amount of the sale, or whether only the amount covered by the original TT3's showing the imported funds.

4. If you are bringing in additional funds for renovation and other purposes not related to the actual purchase price/cost of condo unit, you might consider splitting the transfers into several parts, so that you have one or more TT3's sufficient for just the cost of the condo unit, and other TT3's which you can keep for other use if the need arises. Bangkok Bank will issue a TT3 so long as the incoming funds exceed US$20,000 or equivalent.

I will probably engage some local lawyer to help with my property transactions to make sure everything goes smoothly. But I've yet to find the right one.

Did you try Sunbelt?

I think one mistake we are all making is that the doc is now called a foriegn exchange certificate.

[tangoll]

The form issued to me by Bangkok Bank, is called "Foreign Exchange Transaction Form" and I believe the Thai term is Tor Thor 3.

I don't think there's any confusion or mistake about that form.

[Sophon]

The form issued to me by Bangkok Bank, is called "Foreign Exchange Transaction Form" and I believe the Thai term is Tor Thor 3.

I don't think there's any confusion or mistake about that form.

Until not too long ago what you needed was a TT3 form, but that was changed to a new form called a "Foreign Exchange Transaction" form. It's not just a question of Thai versus English name, it's two different forms.

That said, I'm fairly confident that if you ask for a TT3 form from the bank they will know what you need and give you a Foreign Exhange Transaction form.

Sophon

[tangoll]

Sophon: Thanks. That clears it up. What the Bangkok Bank issued to me, stamped, is the "Foreign Exchange Transaction Form". I don't know what the equivalent Thai term is, though the form does have Thai letters next to that title. The form does have purpose stated on it, "For purchase of condominium", but does not specify that an address is needed.

[FRM-BKK]

Dear All,

I posted the enclosed article over a year ago for people in the same position as you are now. All of the points raised are still valid today, I hope it will be of some help, if not, it might give further clarification.

Tor Tor 3 has been abolished since May 2004 and replaced by what the authorities now use:

Foreign Exchange Transaction Form

To get the FETF's (foreign exchange transaction form) you will need to stick to some basic principles.

1

Money has to be remitted from abroad, in a NON THAI currency, so sterling, dollars anything but not Thai baht.

2

The amount you remit in one transaction has to be for at least USD 20,000 or equivalent. If you send less, the amount does not qualify for a FETF form, so make sure you remit enough to get you over 20,000 USD equivalent. ( over 12,000 pound sterling?)

If your condo is not yet ready, and you are required to make regular payments, which are smaller than 20,000 USD send several payments at once, so to get you over the 20,000 USD amount.

Also I would only pay monies into my own Thai bank account, not the account of the developer or solicitor....only your own!! This is just for safety and security. Also keep in mind the vality period of FETF's I have no experience with this as my transaction was completed in 8 weeks.

3

When you send the money from your home country, or wherever it is coming from, the remitting bank must put on the electronic wire form some crucial information..............without this the bank or land department will refuse.

First on the wire instructions it must contain your full name. exactly as in your passport. It must also contain the purpose for the remit: "for purchase Condominium" These two items are vital. I had the bank in the UK also put on my passport number, just so to tie everything in with me only.

4

Once the money is in Thailand, go to the bank and ask them to issue you with the FETF. If you are dealing with a local branch who do not seem to know what to do, go to their head office. I did everything through the Bangkok Bank HQ on Silom Road in Bangkok. That is where I have my accounts. They knew exactly what was needed and got me sorted out in about half an hour. I had remitted 3 payments to Thailand.

I did have to pay for the FETF's about 200 baht each letter.

5

The FETF form should contain the following:

in section 1

your full name and passport number

in section 2

the name of the bank that sent the money to Thailand

in section 4

the purpose of the transaction, with the code 318069 (i assume this is a standard code for condo buying)

and this section will also specify that the reason is for: "purchase of Condominium"

in section 6

date and your signature

in section 7

a stamp and signature from the authorized financial institute (your bank)

That is it.

You will need additional bits and pieces for the land registry department.

You will need copies of the passports of both your father and your mother. If they are no longer alive, you must give their full names, registered postal address when they were alive and the date they died.

If you want any more help or info, just PM me.

I went through the whole process in June 2004. It all went without a hitch. I had done a lot of research before I proceeded. All in all, it paid off. From final payment to the seller to getting the title deeds was 2 days!!

Good luck,

FRM-UK

[tangoll]

FRM-UK: Thanks for your info. My experience with obtaining the FEFT is similar to yours. I only have two questions:

1. I don't know if there is a validity period for the FEFT. There is no indication on the form itself that it is valid only up to a certain period.

2. I don't understand the need for the information about the father and mother. My mother passed away 25 years ago, and I lost contact with my father 35 years. I can understand the need for parents' info or approval if I'm underaged, but I will be 65 in a few months time. Plus I've never heard or read about this requirement from people in the real estate business in Bangkok or from generally available documents about the process of purchasing and owning condo units in Thailand. This is a first and a real mystery. Is there something unique about your situation that required you to supply such parental information?

Thanks

[Gary A]

I think you already have good answers. I wired US dollars from my US bank into Siam Commercial bank. They credited my account in baht the very next day. I didn't state what the funds were for and no one asked me. I had no problems at all and when I asked for the wire transfer details for the land office it took less than 15 minutes to get the document from the bank.

[tangoll]

Gary A: when you went to the Land Office, did you have to supply copies of passport or information about your father and mother, as mentioned by the earlier post by FRM-UK? That's a real mystery to me.

[Gary A]

I had forgotten about that but yes I did. As far as I understood it is similar to a house paper for a Thai and the information about your parents goes somewhere in the land office condo record.

Gary A: when you went to the Land Office, did you have to supply copies of passport or information about your father and mother, as mentioned by the earlier post by FRM-UK? That's a real mystery to me.

[Pappiklon]

Thank you all for your comprehensive replies. My funds arrived at Bangkok Bank in £sterling and went into my savings account as Thai Baht no problem, the bank even called me to let me know they had arrived. A few days later I went to Bangkok Bank head office where my account is, went to the 2nd floor, was directed to the right counters and had my foreign exchange transaction form in about 15 minutes. Next week I take it all to the land department for to conclude the purchase, hoping that all goes as smooth as the bank!

[Firefan]

They (at land office) asked for my father/mothers names, but did not require any documentation. Some here have stated that it is an additional security feature (as only the true title deed holder would know this info?) but I think it might just be a left over from some old rules meant for Thais. Cheers!

[Pappiklon]

They (at land office) asked for my father/mothers names, but did not require any documentation. Some here have stated that it is an additional security feature (as only the true title deed holder would know this info?) but I think it might just be a left over from some old rules meant for Thais. Cheers!

To be safe I took my parents full names, DOB and their addresse and the dates when they died. All that was asked for in this respect was simply their full names.