Requisite Documents In Purchasing A Condominium Unit In Thailand
You may have looked around, inquired and searched online for a prospective condo unit of your choice in beautiful Bangkok. You have considered the do's and don'ts involved in selecting that one condo unit you hope to own. Finally, you have settled on one which, from all points of consideration, just seem to tug at your heartstrings. That one particular condo unit has won your heart wholly and irrevocably. You must now proceed to the nitty-gritty aspect of purchasing your condo unit.
What documents do you need to present?
The buyer (you) needs to provide the following: a Passport, a Power of Attorney, a Marriage and/or Divorce certificate and an FET form.
- The passport should be a valid one.
- The Power of Attorney is required whenever a foreign buyer cannot personally appear before the Land Office. In this case, he is required to legally empower someone else to represent in his stead. The proxy must bear a Power of Attorney to represent the foreign buyer.
- A foreign buyer is also required to present either a marriage certificate or a divorce certificate, whichever is applicable.
- An FET form is short for a Foreign Exchange Transaction form. This is basically a bank document which shows proof that you have brought from abroad sufficient foreign currency to pay for the condominium unit.
Note that these requisite documents are only for personal purchases. If you are purchasing a condo unit under the name of a company, the documentation is even more complicated and extensive. What documents must the seller present? You also need to make sure that the seller should have the following documents: Personal Documents, Title of Deed and Letters of Guarantee.
- Personal Documents include a valid ID card, a household registration and a letter of consent from the spouse which indicates mutual or conjugal decision to sell the condo unit.
- The Title of Deed of the condo unit should be the original.
- The Letters of Guarantee consist of two letters which are both issued by the Condo Building Juristic Person. The first letter states that no more than 49% of the condo unit is owned by the foreigner. The second letter guarantees that the seller does not owe the Condo Unit Juristic Person any fees or expenses.
What is the FET? The Foreign Exchange Transaction (FET) is a vital requirement for condo purchases involving a foreign or non-resident buyer. This is in accordance to the 1991 Condominium Act which categorically states that non-residents who wish to purchase a condo unit in Thailand must pay for the unit with funds coming from the overseas, which also means that said payment should be in the form of foreign currency deposited into a bank in Thailand. As proof that such a mode of payment has arrived, the non-resident condo unit buyer must ask for the Foreign Exchange Transaction form from the bank and present it to the Land Office.
Other things to take note of:
- The foreign purchaser should ask that it be specifically indicated in the FET form that the funds are for the payment of a residential condominium unit in Thailand.
- The foreign buyer should also realize that most Thai banks will only issue an FET for transactions involving US $20,000 and that for amounts less than this, a credit note or advice must be asked from the bank in place of the FET.
- The FET is no longer needed when the foreign purchaser has a Permanent Residence. In such a case, the buyer can directly purchase the condo unit in Thai Baht.