A Foreign Buyer’s Guide to Condominium Purchases
When pursuing the acquisition of a condominium unit in Thailand, foreign buyers should adhere to the following constructive guidelines to facilitate a seamless transaction:
Ownership Allocations
- Foreign ownership is capped at 49% of the total condominium area.
- Funds for the purchase must be remitted from abroad to a designated bank account in Thailand.
Payment Procedures
- Foreign buyers must initiate fund transfers to receive a “Foreign Exchange Transaction” (FET) certificate, crucial for both the Land Office transfer and potential future remittances.
- Any foreign currency is acceptable but must be transferred as foreign currency and exchanged into Thai Baht by a local Thai bank.
Documentation Requirements
- Foreigners must furnish proof to the Department of Lands, demonstrating that funds have been remitted from overseas in foreign currency.
Remittance Specifics
- Remittances must precisely match the purchaser’s name on the contract.
- Fund transfers must occur in foreign currency and explicitly state the purpose of the remittance.
Total Remittance Considerations
- Ensure that the total remittance, as detailed in the FET forms, meets or exceeds the amounts stipulated in the Sale and Purchase Contract, covering reservation, agreement signing, installments, and the transfer price.
Developer Account Option
- In the absence of a Thai bank account, funds can be directly remitted to the developer. The developer, as the beneficiary, will obtain the FET on behalf of the buyer.
Documentation Importance
- Either the FET or a credit note is crucial for evidencing fund remittance at the Department of Lands.
- Failure to provide these documents will hinder the registration of ownership.
Payment Account Details
- Utilize the provided Kasikorn Bank account details for fund transfers, ensuring adherence to the specified instructions.
Foreign Exchange Transaction Process
- Follow precise instructions during the FET process, including matching the remitter’s name with the purchaser’s, transferring funds as foreign currency, and stating the purpose clearly.
Debit Advice Submission
- After each remittance, promptly submit a debit advice via fax or email to the sales office for efficient record-keeping.
Payment Adjustment
- Anticipate adjustments due to currency conversions; these will be reconciled in the final payment upon ownership registration.
Ownership Transfer Details
- Before ownership transfer, the developer will communicate the amounts due, including the final adjusted payment, transfer fee, and other associated costs.
This is a brief guide on the overall purchase process. We conduct regular webinars where we can share various topics in more depth. Also, we welcome you to join our quarterly Bangkok Property Tour where we visit potential launches and explore exclusive great deals. Feel free to leave any questions or comments below and we see you in the new exciting year.