I am buying a new condo, and I just got a surprising request from the constructor.

[rondamon]

I bought this condo in Chiang Mai almost two years ago. Now that the building is almost finished, I am ready to take posession. The project looks superb, by the way, frankly exceeding my expectations. I think it helps that I chose a high-end project by an experienced company with good reputation, in a very exclusive area.

But I disgress, back to the case. After signing the contract I started sending money from overseas, using different accounts as sender and in some cases even I had companies and family members just deposit directly into my Thai bank account. Let's call this account "account A".

So, I recently asked for the foreign funds certification from the bank, since I am ready to get my condo transferred. They produced a certification detailing each transfer and certifying that the funds are for the purchase of this condo.

Now, the thing is the constructor -which is a serious company managing a rather big project- tells me that I need to move my funds to another bank, because the certification contains too much information, and only in another bank can they be flexible enough to give me a certification that just says the money comes from abroad -with no further details. They say that the land office in CM will ask too many questions and delay everything unless I move the funds and transfer to them from a different bank.

My current bank, by the way, says that is nonsense, that the land office should approve my certification because there is nothing wrong with it.

How do you read this situation? Has anyone had a similar experience? Am I being too careful? Should I just open the new account and follow the instructions of the constructor? What are my risks?

Thanks for your help.

[KittenKong]

As long as the funds really came from abroad and the FET form certifies this then I dont see why there should be a problem. But maybe Chiang Mai Land Office is particularly difficult and hard to please?

If you move the THB funds to another bank that bank wont be able to issue a valid FET form anyway as it wont have done the original FX transaction. Or is the constructor suggesting that you export the money as foreign currency and then import it again in order to have just one FET form for one transaction?

Either way it all sounds complex and pointless to me.

[rondamon]

Thanks for your reply.

It seems completely unnecessary to me as well, so i don't understand why they want this. Maybe they do know from experience that the Chiang Mai Land Office can be annoying.

They say that the new bank will use my current certification as the underlying proof of overseas origin of the funds, and then proceed to issue a simplified certification.

[Mojomor]

Revisit your own bank, and ask them to give you 1 Tor tor sam for the full amount. This is the simple way.

[blackcab]

Take your FET to the land office and ask them.

[rondamon]

Seems like that's what I'll be doing (going with the FET to ask), but what to do if they refuse to accept it, even though it meets all the requirements by law?

[blackcab]

I doubt they will refuse to accept it. Chances are someone doesn't want to write ten lines when they can write one.

But if they do, your developer has already given you a solution.

Edited September 29, 2015 by blackcab

[wpcoe]

I seem to vaguely recall someone reporting they had problem with a FETF when the overseas money sender's name didn't match the name of the condo purchaser. Can't remember if it was the bank that took issue or the Land Office. Does that ring a bell with anybody?

[Naam]

Kasikorn, Pattaya. i recently transferred €UR 100k from the account (Singapore bank) of a friend who's financial affairs i am handling since more than 25 years. he and his wife travelled to Thailand to sign all relevant documents for a real estate deal. i advised him to add his wife to the Kasikorn account and so he did. when we went to the bank for the TorTor3 we were informed they can only issue the document in his name because a new joint account was established and for the couple a new account number was allocated.

when i asked "just transfer the €100k to the new account" we were told "can not!" when i asked "why cannot?" we were told "can not because no can do!" my threat "then we close both accounts and withdraw the money from both accounts (total of THB 8.3m) in cash was cooly countered with "prease come back abternoon four crock for money".

i had no other choice than to call Singapore to swift another €100k. needless to mention that we did withdraw the balance a few days later after the required document was issued and opened a new account with Siam Commercial.

my complaint to the head office dated august 23 was never answered. TIT!

[oneday]

They say that the new bank will use my current certification as the underlying proof of overseas origin of the funds, and then proceed to issue a simplified certification.

...and if they don't. Why not go to the land office and ask them?

If it were me I wouldn't do it, because this big company saying the new bank will issue the proper paperwork based on your other bank's certification is not to be trusted. And if the land office does ask a lot of questions, then that's their problem. They should have plenty of people that know how to deal with it.

I would certainly investigate a lot more.

[thaiturkey]

Kasikorn, Pattaya. i recently transferred €UR 100k from the account (Singapore bank) of a friend who's financial affairs i am handling since more than 25 years. he and his wife travelled to Thailand to sign all relevant documents for a real estate deal. i advised him to add his wife to the Kasikorn account and so he did. when we went to the bank for the TorTor3 we were informed they can only issue the document in his name because a new joint account was established and for the couple a new account number was allocated.

when i asked "just transfer the €100k to the new account" we were told "can not!" when i asked "why cannot?" we were told "can not because no can do!" my threat "then we close both accounts and withdraw the money from both accounts (total of THB 8.3m) in cash was cooly countered with "prease come back abternoon four crock for money".

i had no other choice than to call Singapore to swift another €100k. needless to mention that we did withdraw the balance a few days later after the required document was issued and opened a new account with Siam Commercial.

my complaint to the head office dated august 23 was never answered. TIT!

BANKERS WITH A "W"

I also had a problem with this bank when I urgently needed to transfer money out. Some over zealous to??er in H.O. blocked it. Went next door to BB...no problem!

[Tywais]

Abusive post and reply to it removed.

[paddyjoe41]

Take the document yourself that will save all the bs here and elsewhere,you satisfy your own mind,your money your building,good luck to you.

[fang37]

I have never had a problem. Purchased 6 condos in LOS over 12 years.

WHAT AM I DOING INCORRECTLY?

[WilliamBuriram]

I recently bought my condo and on completion they asked for THB750K to be paid to the managing director! I said no as it is money laundering, all went well in the end with my land registration.

[GAZZPA]

The only thing I can think of is the name on the deposits into your Thai bank account. When I purchased my condo I had to show that the funds came from me, overseas (not some else's bank account), I then got a "Tor Tor Sam" (I know i have spelt it wrong but it is what it sounds like), you need this to buy as a foreigner. So, if there are a lot of deposits and in some of them it is not your name that may be a problem.

However, if you transfer the money from a different account with it all in your name this may solve the situation.

The only question i have is I would think that they would want you to transfer all the money, from a "foreign" account into a Thai account in your name only but it sounds like he simply wants you to move money within Thailand.

Perhaps the developer has a problem with the bank you are using?

Best advice is speak to land registry yourself I think and see if what you have done is ok. If they say no, you have some juggling to do.

[realenglish1]

Unfortunate there is no uniformity in the banking system here in Thailand It all boils down to some peon sitting behind a desk as to whether she likes the way you look or not

Too bad Thailand will never be a world player until they come up to international standards .Right now they are bush league

[nahkit]

In the past I have sometimes seen condo developers requesting that funds sent from overseas should be marked as "For Condo Purchase" - is that strictly necessary or is it ok as long as you can show the funds came from overseas?

[wpcoe]

I seem to vaguely recall someone reporting they had problem with a FETF when the overseas money sender's name didn't match the name of the condo purchaser. Can't remember if it was the bank that took issue or the Land Office. Does that ring a bell with anybody?

The only thing I can think of is the name on the deposits into your Thai bank account. When I purchased my condo I had to show that the funds came from me, overseas (not some else's bank account), I then got a "Tor Tor Sam" (I know i have spelt it wrong but it is what it sounds like), you need this to buy as a foreigner. So, if there are a lot of deposits and in some of them it is not your name that may be a problem.

Aha. So my memory might still be somewhat reliable. When I read the OP about some money being sent from other peoples' accounts and that the developer said "the certification contains too much information" I wondered if that might be their concern.

[KittenKong]

Technically I think you are supposed to show the name of the development and the unit number as well as the mention "for condo purchase". In practice (in Pattaya anyway) it doesnt seem to matter, besides which in many cases you may not even know these details at the time you send the money. I certainly didnt.

I dont really see what difference it makes anyway. Either the money came from abroad or it didnt. If it did then what can it matter what the original declared purpose was? My money is all for general expenditure: it's not compartmentalised for condo purchase or car purchase or buying lunch.

As usual in Thailand, acceptability may depend on the individual whim of the individual LO official on the day.

[crazykopite]

Kasikorn, Pattaya. i recently transferred UR 100k from the account (Singapore bank) of a friend who's financial affairs i am handling since more than 25 years. he and his wife travelled to Thailand to sign all relevant documents for a real estate deal. i advised him to add his wife to the Kasikorn account and so he did. when we went to the bank for the TorTor3 we were informed they can only issue the document in his name because a new joint account was established and for the couple a new account number was allocated.

when i asked "just transfer the 100k to the new account" we were told "can not!" when i asked "why cannot?" we were told "can not because no can do!" my threat "then we close both accounts and withdraw the money from both accounts (total of THB 8.3m) in cash was cooly countered with "prease come back abternoon four crock for money".

i had no other choice than to call Singapore to swift another 100k. needless to mention that we did withdraw the balance a few days later after the required document was issued and opened a new account with Siam Commercial.

my complaint to the head office dated august 23 was never answered. TIT!

I know this has nothing to do with this story but I noted you transferred the money to SCB at this moment in time SCB could at some stage find themselves in trouble due to its excessive loaning of millions of Thai baht to a Thai company that has just had to mothball its major steel works in the UK due to the huge amount of losses as an SCB account holder I am considering very strongly to closing my SCB accounts down as I am unsure what would happen should the bank go under SCB is not a government owned bank and this worries me just thought I would let you know I am not trying to scaremonger but I have experienced losses a few years ago as a shareholder when the UK government took over the B&B building society and I was one of those who lost a considerable mount of money by way of share holding !

[tajtom]

Immediately appoint a solicitor Thai to complete the transfer at a small fee your being possibily set up

Never trust a Thai

Sorry but listen be safe this is there country they get away with mureder for 30,000 baht

[tajtom]

The constructor is a rat and should not make issues the dick brain.... You paid and I bet at the start he would have told you no problem

I would back hander the constructor

[blackcab]

Kasikorn, Pattaya. i recently transferred UR 100k from the account (Singapore bank) of a friend who's financial affairs i am handling since more than 25 years. he and his wife travelled to Thailand to sign all relevant documents for a real estate deal. i advised him to add his wife to the Kasikorn account and so he did. when we went to the bank for the TorTor3 we were informed they can only issue the document in his name because a new joint account was established and for the couple a new account number was allocated.

when i asked "just transfer the 100k to the new account" we were told "can not!" when i asked "why cannot?" we were told "can not because no can do!" my threat "then we close both accounts and withdraw the money from both accounts (total of THB 8.3m) in cash was cooly countered with "prease come back abternoon four crock for money".

i had no other choice than to call Singapore to swift another 100k. needless to mention that we did withdraw the balance a few days later after the required document was issued and opened a new account with Siam Commercial.

my complaint to the head office dated august 23 was never answered. TIT!

I know this has nothing to do with this story but I noted you transferred the money to SCB at this moment in time SCB could at some stage find themselves in trouble due to its excessive loaning of millions of Thai baht to a Thai company that has just had to mothball its major steel works in the UK due to the huge amount of losses as an SCB account holder I am considering very strongly to closing my SCB accounts down as I am unsure what would happen should the bank go under SCB is not a government owned bank and this worries me just thought I would let you know I am not trying to scaremonger but I have experienced losses a few years ago as a shareholder when the UK government took over the B&B building society and I was one of those who lost a considerable mount of money by way of share holding !

I have accounts at SCB and I'm not bothered at all. The bank has already taken action to cover it's losses. Let's face it, banks can make a loss occasionally and still survive.

I think this is especially true when you look at who the major shareholder of SCB is.

[KittenKong]

I recently bought my condo and on completion they asked for THB750K to be paid to the managing director! I said no as it is money laundering, all went well in the end with my land registration.

I wonder how many just do as they are asked? Quite a few, I suspect.

[scorecard]

Unfortunate there is no uniformity in the banking system here in Thailand It all boils down to some peon sitting behind a desk as to whether she likes the way you look or not

Too bad Thailand will never be a world player until they come up to international standards .Right now they are bush league

Certainly agree, Thai banks way under international standards, and their charges very high.

Six months ago a western friend had the experience of going into a very high profile Thai bank to make a payment on his credit card.

Teller, speaking excellent English announced " my bank has new rules about payments on credit cards, you now have to take a cash advance on your card first, then use that money to make a payment, there is no other way now to make CC payments."

Customer called the BKK HO and asked if it's true. Initial response, 'please follow the instructions of the teller'. He insisted on speaking to a supervisor, who was shocked and said 'no, it's not true', and asked for the name of the branch, and asked the customer to please stay at the branch.

Within 2 minutes teller tells the customer she has been given permission by HO to, this time, take the money directly from the customer, no need for cash advance first.

Customer grabbed the phone from her and quickly discovered the same lady from HO was on the phone. He shared the 'have been given permission to accept cash this time' line with the HO lady, who said she had not said anything like that, she did then ask the customer to ask who is the senior on duty.

After no reaction one person did eventually acknowledge that she was the senior on duty, and she took the phone.

Within another 2 or 3 minutes the senior told the errant teller to take her bag and leave the bank. Senior then immediately did a 'shut down' on that computer.

Later same day a senior executive called the customer and apologized profusely. Friend says he's been back to that branch many times since, the errant teller never seen again.

But, did she get transferred to another branch? Who knows.

[rondamon]

Hi, OP here.

Thanks to everyone who replied. I went to the LAnd Office today, and the person incharge of legal issues checked my certification and said that it was OK, there was no problem whatsoever. The manager of the project himself drove me o the Land Office so that we could get a good solution. It seems it was either lack of knowledge by the salesperson, or a little scheme to get me to pay for the unnecessary lawyer, which of course was not paid in the end given that the problem was fictitious.

The conclusion is that it is OK to have money transferred from acounts that are not in the buyers name, provided that all other requirements are met (like tranferring in foreign currency, etc.)

[thaivaper]

I had heard from my lawyer and a realtor here in CM that people were using the same letter to buy more than 1 condo and that is why they wanted details of the condo being purchased listed on the money transfers.

[rondamon]

Ah yes, the details of the condo were in the certification alright. The argument was not about that, it was about the funds not coming from accounts in my name. But it was bogus, because that is not the Land Office's buiseness. If the bank issues a certification it means they vouch for the legality of your funds, and that's enough for them to accept it.

[mrfaroukh]

If you want to get your condo never do such thing just take a flight go to Thailand and sort out everything in person.