Foriegn Exchange Transfer form - Purchase condo Question

[stevieboy2]

I have asked several real estate several people this question but get mixed answers so if you have experience in this matter I would appreciate your help.

The situation is I am purchasing a leasehold condo and I understand that the money must come from outsideThailand and be accompanied by the FET form .

On the FET Form:

Who is the customer? Me or the seller?

It says Beneficary or sender information. Is that the ultimate end reciever or seller or me?

Lastly and I guess the most important question is:

if i have my brother in law send the bank wire from outside Thailand and he is not to be on the title or mentioned in the paperwork is there any problem getting my name on the title.

Thank you in advance for any educated responses.

[kimmy]

You must be sender and receiver or the sender or reciever of the money on the FET form. Basically the FET form is only asked when you want to register foreign ownership, not when you lease the apartment unit. If you buy a leasehold unit in an apartment block without a condominium license a FET form is not required as the condominium act does not apply.

[KittenKong]

The situation is I am purchasing a leasehold condo ....

Apparently you are buying a lease, not a condo. A lease is merely a long rental with the rent paid in advance. So no FET form required as there is no change of ownership.

It's a mystery to me why anyone would buy a lease on a condo here when condos are the only property that a farang can legally buy outright.

And you should be aware that whilst one lease of 30 years is probably legal any arrangement involving multiple leases totalling more than 30 years is not legal and will probably result in you losing your money.

Edited April 19, 2015 by KittenKong

[tolsti]

It is probably a condo where they foreign ownership quotient is replete but the developer is still holding units and prefers to lease them rather than sell them to Thais.

[KittenKong]

It is probably a condo where they foreign ownership quotient is replete but the developer is still holding units and prefers to lease them rather than sell them to Thais.

It may be that. Or maybe Thais just aren't interested in the building.

For some unknown reason leasehold purchase of condos seems to be quite common in Phuket, for example. In Pattaya it's quite rare and company ownership is common.

Edited April 19, 2015 by KittenKong

[tolsti]

Yes, I have experience of it on Phuket.

[elgordo38]

The situation is I am purchasing a leasehold condo ....

Apparently you are buying a lease, not a condo. A lease is merely a long rental with the rent paid in advance. So no FET form required as there is no change of ownership.

It's a mystery to me why anyone would buy a lease on a condo here when condos are the only property that a farang can legally buy outright.

And you should be aware that whilst one lease of 30 years is probably legal any arrangement involving multiple leases totalling more than 30 years is not legal and will probably result in you losing your money.

Probably the best advice your going to get.

[stevieboy2]

Thank you very much for your reply. It makes sense!

[stevieboy2]

Let me clarify something.

The condo is on leased land owned by the royal family. I am buying this used condo which still has 27 years on the leased land. There will be a change in ownership required as I am buying from a seller who was the original purchaser of the condo unit?

Are you saying that because the actual land is not part of the sale and it is just a registered condo on that land that no FET form is require and therefore It does not get registered with the LAND Registers office?

Thank you

[KittenKong]

Let me clarify something.

The condo is on leased land owned by the royal family. I am buying this used condo which still has 27 years on the leased land. There will be a change in ownership required as I am buying from a seller who was the original purchaser of the condo unit?

Are you saying that because the actual land is not part of the sale and it is just a registered condo on that land that no FET form is require and therefore It does not get registered with the LAND Registers office?

In that case the leasehold status of the land is irrelevant.

You will need an FET in order to register the transfer of ownership of the condo. The land never forms part of the transfer as the land (when owned) is owned by the building, and each condo owner owns a share of the building by owning his own unit. This is the basis of a condominium structure.

The funds should be sent to an account here in your name. (As a general rule only an idiot would send money to someone else's account in Thailand.) The sender should give "condo purchase" as the reason for transfer. The sender should mention the building and unit numbers (if known).

The funds should arrive in Thailand in foreign currency to be converted here. The rate you get from your Thai bank is negotiable, so negotiate.

Supposedly you (the buyer) should also be the person sending the money, but in practice this doesn't seem to matter very much.

Personally I would not want to buy a condo that did not own the land it is built on, but that's just my opinion.

[stevieboy2]

Thank you for your thoughtful and concise reply as it is very helpful to me and wish the real estate professionals I have dealt with here were as professional as you are.

Regards, Steve