Condo Transfer between foreign family members

[SoFarAndNear]

Hi,

is it possible that foreign condo owner can transfer his condo property to a family member (also foreigner)? It is not a sale just a transfer from brother to another brother. What would be the fee's for this? And how about the rule that the money for a condo buy has to be transferred from abroad Thailand?

[lkn]

Previous research led me to believe that this is not possible.

 

If you want to change the name on the title deed then you must go through the land office, and they’ll want a transfer fee and also that the new owner complies with the law (i.e. show the relevant FET form for the value of the condo).

 

[SoFarAndNear]

7 hours ago, lkn said:

Previous research led me to believe that this is not possible.

 

If you want to change the name on the title deed then you must go through the land office, and they’ll want a transfer fee and also that the new owner complies with the law (i.e. show the relevant FET form for the value of the condo).

 

 What would happen in case of a inheritance? The condo owner dies and his last will states that his brother or another foreigner will get his condo. 

[lkn]

1 hour ago, SoFarAndNear said:

 What would happen in case of a inheritance? The condo owner dies and his last will states that his brother or another foreigner will get his condo. 

 

The heir will also have to comply with the law, which means bringing money into Thailand and buying the condo from the estate. Alternatively they must sell the condo within one year of becoming the owner.

 

It’s not overly intuitive, as the heir will effectively buy the condo from themselves, minus transfer fee and withholding tax.

[rak sa_ngop]

I think I read somewhere some time ago that it may be possible (for a fee) to add another name to your chanote. If that were possible the property would automatically pass to the other party on the first party's death.

 

This may also depend on which Land Office you are dealing with, and also on whether some nice land office official is prepared to do this kindly act (hint hint) for you.

 

I would be interested to know if anybody knows more about this.

[blackcab]

10 hours ago, rak sa_ngop said:

If that were possible the property would automatically pass to the other party on the first party's death.

 

That's not quite correct. The deceased's share of the property would be distributed to their beneficiaries.

[trogers]

On 11/02/2016 at 0:50 AM, lkn said:

 

The heir will also have to comply with the law, which means bringing money into Thailand and buying the condo from the estate. Alternatively they must sell the condo within one year of becoming the owner.

 

It’s not overly intuitive, as the heir will effectively buy the condo from themselves, minus transfer fee and withholding tax.

 

Not true. No new FET required. But you will need a court order to effect the written will. Transfer tax of 2% is required to be paid.

[lkn]

51 minutes ago, trogers said:

Not true. No new FET required. But you will need a court order to effect the written will. Transfer tax of 2% is required to be paid.

 

Do you have experience with an actual case?

 

Because reading the condominium act, it makes it very clear (section 19) that to own a condo in the foreigner quote, you must satisfy one of their five requirements (where bringing in money from abroad seems to be the only practical option for us), transferring ownership does not automatically make the new owner qualified, they must become qualified on their own, and the condominium act explicitly states that an heir has one year to dispose of the condo.

 

I have a hard time interpreting that differently than the heir having to become qualified (as defined by section 19) if they want to own the inherited condo for longer than the one year granted to them by the condominium act.

[trogers]

14 minutes ago, lkn said:

 

Do you have experience with an actual case?

 

Because reading the condominium act, it makes it very clear (section 19) that to own a condo in the foreigner quote, you must satisfy one of their five requirements (where bringing in money from abroad seems to be the only practical option for us), transferring ownership does not automatically make the new owner qualified, they must become qualified on their own, and the condominium act explicitly states that an heir has one year to dispose of the condo.

 

I have a hard time interpreting that differently than the heir having to become qualified (as defined by section 19) if they want to own the inherited condo for longer than the one year granted to them by the condominium act.

 

Actual experience. My late father's condo transferred to my name 4 months ago. Both of us are foreigners. I was the executor and sole beneficiary of his written will.

[rak sa_ngop]

23 hours ago, rak sa_ngop said:

I think I read somewhere some time ago that it may be possible (for a fee) to add another name to your chanote. If that were possible the property would automatically pass to the other party on the first party's death.

 

This may also depend on which Land Office you are dealing with, and also on whether some nice land office official is prepared to do this kindly act (hint hint) for you.

 

I would be interested to know if anybody knows more about this.

 

12 hours ago, blackcab said:

 

That's not quite correct. The deceased's share of the property would be distributed to their beneficiaries.

You are probably correct but I know of one case where the family of a deceased tried to recover half a condo, but the surviving party managed to get the other half of the condo transferred to his own name. Maybe the process was not automatic but somehow he managed to achieve it (and effectively steal the inheritance).

[blackcab]

2 hours ago, rak sa_ngop said:

 

You are probably correct but I know of one case where the family of a deceased tried to recover half a condo, but the surviving party managed to get the other half of the condo transferred to his own name. Maybe the process was not automatic but somehow he managed to achieve it (and effectively steal the inheritance).

 

That should be quite easy to rectify if it was done improperly. In general, the staff at the land office want every last detail to be correct as they are afraid of making mistakes. Which is why 3 staff check every transaction.

[KittenKong]

3 hours ago, blackcab said:

In general, the staff at the land office want every last detail to be correct as they are afraid of making mistakes.

 

In Bangkok, maybe. My opinion of LO staff is very different.

[MartinKal]

That is very useful advice. I would like to anticipate a little by buying a condo in my daughter's name. She lives in UK but has a bank account here. And I have FET  money in Thailand. 

Would this be possible, do you think?

[Jeffkp]

1 hour ago, MartinKal said:

That is very useful advice. I would like to anticipate a little by buying a condo in my daughter's name. She lives in UK but has a bank account here. And I have FET  money in Thailand. 

Would this be possible, do you think?

When I bought my condo (from the developer), I had to show monies transferred in specifically for this purchase. They insisted that this be noted on the wire transfer.

[HampiK]

46 minutes ago, Jeffkp said:

When I bought my condo (from the developer), I had to show monies transferred in specifically for this purchase. They insisted that this be noted on the wire transfer.

 

The developer insisted in that, or the land departement?

 

The land departement only were interested in the FTE form and not were looking on the comment (purchase of condo xyz).

But I hear this many times, that this would be important. On the other site, so far I know it is only important, that you can prove the money is brought into Thailand from outside, which the FTE form would do.

[lkn]

10 minutes ago, HampiK said:

The land departement only were interested in the FTE form and not were looking on the comment (purchase of condo xyz).

But I hear this many times, that this would be important. On the other site, so far I know it is only important, that you can prove the money is brought into Thailand from outside, which the FTE form would do.

 

I’ve also read it a few places, but I did not do it, in fact, my transfers were a mess because they did not all originate from the same sender, not even same country, nor did they all go to the same bank account. I gave the bank a list of all the transactions, and they made two documents (one for each of the receiving accounts) where they totalled up the amounts, they did write who the sender was for each transaction (which wasn’t me for all of them).

 

No problems at the land office.

[BlackJack]

things have been tightened up at Pattaya LO - its not perfect but

 

Nonresidents are not supposed to buy or inherit land house condo in Thailand  - this is why there are many companies with shareholders and proxies that hold the property

 

if you have 50 50 shares in a condo and one party dies then you have a mess - on one probate and it took 2 years to sort out. The EU tax department wanted their share as well. Then there was a currency fluctuation and one party got creamed by the exchange rate, bank fees, tax, LO transfer fees and taxes. The nonresident beneficiary is supposed to sell in 12 months or so.

 

So understand here that the party inheriting goes to the LO to have their name put on the Deed (Chanote) there are fees for this.

Then when they sell- there are fees again.

 

Plus the Beneficiary has to fly to Thailand and go to court. Go to the LO and nominate a power of attorney POA.

 

Time-consuming and costly - so do it properly in the first place.

 

The TT3 is important to show that the money came into the country for a specific purpose and to prove that there is no money laundering going on.

 

The Executor is critical in a Will situation as they if they are in Thailand can do most of this work for you - do forget it's all in Thai so you better pick the right person or lawyer.

There is no need to rip into this post as I post so that others can benefit. Yes, some will say that their situation was different and so be it.