Foreigners looking to buy any condo in Thailand will need a FET form, also known as a foreign exchange transfer form or TT3. Without it, you’ll never be granted ownership of the property at the Land Office. I recently spoke to Khun Sirichot Chaiyachot, Partner and Co-Founder of LAFS Legal, to get a better understanding of just what is needed.
“If you want to buy a condo in Thailand, you need to transfer the funds from overseas in a foreign currency. It cannot be Thai baht,” Khun Sirichot states. “Before you transfer the funds into Thailand, you must specify the purpose, in this case, buying a condominium unit. You should put details of the condo, such as the name of the project and unit number in the form.”
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That is actually a critical part of the FET form. Failing to transfer the money in foreign currency or leaving out details will create problems and may even hinder your attempts to buy Thai property.
“If you transfer Thai baht into Thailand from overseas, you may encounter some difficulties. Same thing if the purpose isn’t specified. There are some land officers who won’t accept the EFT if it has been completed incorrectly,” Khun Sirichot notes.
What about opening a Thai bank account as part of your real estate purchase? That may be possible, although there are no guarantees. Most financial institutions will have some conditions in place that you’re expected to meet.
“You can set up a Thai bank account if you have a sell or purchase agreement for a property as well as if you have a work permit or other qualifying document. However, you must be in Thailand to open a bank account,” Khun Sirichot says. “This isn’t something you can do from overseas.”
If you don’t have a bank account in Thailand to transfer the money into, there are a few other options at your disposal. But, as Khun Sirichot notes, you are going to want to be careful when making a decision on this.
“There are few options when it comes to obtaining a FET form in Thailand. First, you already have a bank account in Thailand which you can transfer the funds from overseas into the country,” Khun Sirichot reports. “If you don’t have one, then you’ll need a trusted escrow agent such as a lawyer, real estate agent or developer that has an account you can transfer the money into. This person can then assist you in obtaining a FET form.”
It takes anywhere from one to five days for funds transferred from overseas to reach Thailand. Once that happens, it’s time to take the next step in the process.
“Once the funds reach a bank in Thailand, you can then request the FET form to certify the funds have been transferred from overseas into Thailand,” Khun Sirichot explains. “Once you have this document, you can give it to the developer or seller so they can show it to the land office. The land office will keep the original form while you will get a copy.”
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Do it yourself or hire some help?
In theory, you can go into most banks in Thailand and request a FET form. In reality, things may get a bit messy and that is why you may want to work with someone who knows what they are doing.
“It is a good idea to work with a real estate agent or lawyer who can go into a bank and get a properly issued FET form,” Khun Sirichot notes. “Sometimes you may go into a bank and the officer will not understand what you are looking for or may miss a key detail.”
There is also more to foreigners buying condo unit in Thailand than obtaining a FET form. Sure, you could try to do all this yourself, but the upside doesn’t outweigh the numerous risks involved. That’s especially if you aren’t familiar with the workings of the country’s unwavering dedication to bureaucracy.
“In many cases, a foreigner may be able to try and do this all. But why do you want to try and take some risk with this when a lawyer’s fee isn’t all that much? Additionally, you have to sign documents in Thai. Why would you sign any legal agreement in a foreign language? Having a lawyer you trust ensures you know what you are signing,” Khun Sirichot reports. “And then you have to go to the land officer by yourself and figure things out there. Honestly, it doesn’t make sense to go through all these challenges that you may not be able to figure out.”
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Watch out for this!
Another practice you will want to look out for, especially if you’re visiting the country on holiday, is pushy real estate agents or developers encouraging you to transfer the money into Thailand and obtain the FET form as quickly as possible. Since you can still transfer funds from overseas, there is no rush here.
“If you really like a property, putting a deposit down to reserve it is okay. But don’t go crazy because you may change your mind later when you go back home, talk to other people and do more research,” Khun Sirichot notes. “Rushing a buyer to transfer the money immediately to secure a condo unit is a sale tactic. You shouldn’t let this influence your decision when investing in a Thai condominium unit.”
For more information, contact LAFS Legal at:
www.lafs-legal.com
Tel: +66-2-104-9191
Email: info@lafs-legal.com
