Glossary, buying process

Foreign Exchange Transaction Form (FET) in Thai property

แบบการทำธุรกรรมเงินตราต่างประเทศ

A Foreign Exchange Transaction Form is the certificate a Thai bank issues to show that funds arrived from abroad in foreign currency. The land office asks for it, or a bank credit advice for smaller sums, before registering a condominium in a foreign buyer's name.

The requirement comes from section 19(5) of the Condominium Act, which lets a foreigner own a unit on condition that the purchase money was brought into Thailand as foreign currency. Banks issue the form for an inward transfer of USD 50,000 or more. Below that, the bank provides a credit advice or confirmation letter, which the land office also accepts. The form was previously known as a Tor Tor 3.

Three details decide whether the paperwork works:

Send foreign currency, and let the receiving Thai bank convert it to baht. A transfer converted before it arrives does not qualify.
State the purpose in the transfer instruction, naming the condominium and unit.
Make sure the sender's name matches the buyer's name on the contract.

The documents together should cover the full price. Keep the originals: you will need them to send the proceeds abroad when you sell. Bank practice varies, so ask the receiving bank what it needs before you transfer. See sending money to Thailand and selling property and repatriating funds.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to foreign exchange transaction form (fet)

Freehold: Freehold is outright ownership of property with no time limit, registered in the owner's name at the land office. In Thailand a foreigner can own a condominium unit freehold within the building's foreign quota, but cannot own land.
Foreign quota: The foreign quota is the share of a condominium that foreigners may own freehold: no more than 49% of the total floor area of all units in the building, under section 19 bis of the Condominium Act.
Condominium Act: The Condominium Act B.E. 2522 (1979) is the statute governing how condominiums in Thailand are registered, owned and managed. Sections 19 and 19 bis set out which foreigners may own units and cap foreign ownership at 49% of a building's unit floor area.
Land office: The land office is the local branch of the Department of Lands where title deeds are held and every sale, lease, mortgage and other right over property is registered. A transfer of Thai property takes legal effect only when it is registered there.