The Foreign Exchange Transaction (FET) Form (also known as Thor Tor 3), is an official document prepared under the Bank of Thailand (BOT) regulations to report foreign currency exchange transactions in Thailand. This document is evidential proof that foreign currency is used to purchase assets like property in Thailand. The FET form is only issued by authorised financial institutions like banks within Thailand. The authorised financial institution is that is issuing the FET will be the one who handled the exchange of foreign currency.
Why do we need the FET when purchasing Thai property?
A requirement under section 19 of the Thailand Condominium Act for foreign ownership is that a foreigner must use a foreign currency that has been remitted into Thailand to pay for the full purchase price of the condominium.
Why can’t we use remittance services?
Only authorised financial institutions like banks within Thailand can issue the FET form. The FET form shows that foreign currency has been used to pay for the property in accordance with section 19 of the Thailand Condominium Act. The handling bank in Thailand, upon request, will issue the FET form as proof of the remittance and exchange of foreign currency into Thai baht. The FET form will be required at the land office in order to register the transfer of ownership of a condominium unit in the name of a foreigner.
Can I use remittance services from my home country to the developer’s account in Thailand?
No, you should not do that. This is because the FET form must bear the name of the overseas bank from which the money was remitted. This is why we tell all our clients to go to their local banks and use telegraphic transfers to make the payment for the property.
Can I remit Thai Baht from outside of Thailand to pay for the property?
No, you cannot. You will need to remit in a currency other than Thai Baht to fulfil the requirements under section 19 of the Thailand Condominium Act. For example, if you are from Japan, you can remit Japanese Yen from your bank to the developer’s bank. You can also use other currencies like US Dollar. Any currency except Thai baht. If you remit Thai baht from outside of Thailand you will not be issued the FET form.
What happens if I do not follow the requirements? Is there any way for me to transfer the title to my name as a foreigner?
We have encountered many instances whereby foreigners have failed to transfer their Thai property purchases to their names because of failure to adhere to the requirements under section 19 of the Thailand Condominium Act. The way to solve this is to transfer the full sum of the condominium in a foreign currency. Even though you may have paid the full sum to the developer, because you did not do it in accordance with section 19 of the Thailand Condominium Act, you will not be able to transfer the title to your name.
If you are unsure of the requirements when purchasing a Thai property, please contact our team for more information.
The editorial team at InvestBangkokProperty.com
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