Picture this: You have found your dream condominium in Phuket or a stunning investment villa in Koh Samui. You’ve signed the reservation agreement, you’ve hired a lawyer to check the contract, and you are ready to transfer the funds. You log into your overseas bank account, hit “send,” and breathe a sigh of relief. The money arrives in Thailand a few days later.
Everything seems perfect, right?
Wrong.
When you arrive at the Land Department to register the property in your name, the officer shakes his head. “No FET form,” he says. “Cannot register.”
Suddenly, your dream purchase is stalled. Even worse, if you ever sell the property in the future, you might find yourself unable to take your money back out of Thailand.
This is the “FET Trap,” and it catches hundreds of foreign investors every year. Today, the legal team at Sukhothai Inter Law is going to explain exactly what the foreign exchange transaction form Thailand (FET) is, why it is critical for your property purchase, and how to avoid the costly mistakes that usually happen during the transfer process.
What is the FET Form (formerly Thor Tor 3)?
The Foreign Exchange Transaction (FET) form, previously known as the “Thor Tor 3,” is an official document issued by a Thai bank.
In simple legal terms, it serves as proof that foreign currency was transferred into Thailand from abroad and subsequently converted into Thai Baht inside the Kingdom.
Under the Thai Condominium Act, specifically for foreigners buying a condo under the “Foreign Freehold Quota,” showing this proof is mandatory. The Land Department requires the original FET form to transfer the title deed into your name. Without it, the transaction legally cannot proceed.
But it’s not just for condos. Even if you are buying a villa on a leasehold basis or setting up a Thai company to hold land, getting an FET form is crucial for repatriation. If you sell the property in 5 or 10 years and want to send your profit back to your home country, the Bank of Thailand requires proof that you brought the money in originally. That proof is the FET form.
The “Trap”: Common Mistakes Investors Make
So, why do so many smart investors get this wrong? It usually comes down to a simple banking error that voids the foreign exchange transaction form Thailand eligibility.
Trap #1: Sending Thai Baht (THB)
This is the single most common mistake. When you go to your bank in London, Singapore, or New York, the teller might ask, “Do you want the recipient to receive Thai Baht?”
If you say “Yes,” your local bank converts your Dollars or Pounds into Baht before sending it. The money arrives in Thailand as Baht.
Result: The Thai receiving bank cannot issue an FET form because the funds did not enter Thailand as foreign currency. To the Thai system, it looks like a domestic transfer. You cannot use these funds to register a foreign freehold condo.
Trap #2: The Name Mismatch
The name on the sender’s account, the receiver’s account, and the future property owner on the title deed must link up perfectly.
If you are buying the property in your name, but the money comes from your company’s account or your spouse’s account, you must clearly state the relationship and purpose in the transfer instructions. If the Land Department sees “Sender: John Doe” but the buyer is “Jane Doe,” they may reject the transfer without additional heavy paperwork.
Trap #3: Vague Transfer Instructions
In the “Reference” or “Message to Recipient” field of your wire transfer, you cannot just leave it blank or write “Savings.”
It must be specific. It should say:
“For purchase of Unit [Number] at [Project Name] by [Buyer’s Name].”
If this instruction is missing, the Thai bank may classify the incoming funds as general income or a loan, which can trigger tax complications or repatriation issues later.
How to Transfer Funds Correctly: A Step-by-Step Guide
To ensure you receive your foreign exchange transaction form Thailand without a headache, follow these strict instructions when sending money for your property investment.
Step 1: Currency Selection
Always instruct your home bank to send the funds in your home currency (USD, EUR, GBP, AUD, etc.).
Do NOT convert it to THB.
Let the Thai bank do the conversion upon arrival.
Step 2: Amount Threshold
Currently, Thai banks automatically issue an FET form for transfers exceeding $50,000 USD (or equivalent).
Note: If you transfer less than this (e.g., for a deposit), the bank issues a “Credit Note” instead. This Credit Note works exactly the same way at the Land Department, provided it contains the correct details.
Step 3: Exact Instruction
In the transfer message field, type:
“Funds for the purchase of condominium unit [Unit Number] at [Project Name] on behalf of [Your Name]”
Step 4: Collecting the Document
Once the funds arrive, you (or your lawyer) must go to the main branch of the Thai bank where the developer’s account (or your account) is held to physically request the FET paper. It is not automatic; you must ask for it.
Can You Fix a Messed-Up Transfer?
What if you have already sent the money in Thai Baht? Is all lost?
It is a difficult situation, but not always impossible. In some cases, we can work with the sending bank to provide swift confirmations proving the origin of the funds, but this depends on the strictness of the specific Land Department officer on that day.
Ideally, you want to avoid this stress entirely. This is why having a competent legal team before you transfer a single cent is vital.
Protect Your Investment with Sukhothai Inter Law
Buying property in Thailand involves navigating a maze of financial regulations. The foreign exchange transaction form Thailand is just one document, but missing it can derail your entire investment visa or retirement plan.
At Sukhothai Inter Law, we don’t just review contracts; we guide you through the financial logistics. We ensure your funds arrive correctly, your FET is issued promptly, and your title deed transfer goes smoothly.
Don’t let a banking tick-box trap your hard-earned capital.
Are you planning to buy property to secure a Long-Term Visa?
Check our dedicated visa application page here: Thailand Property Investor Visa Application
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Contact Us Today
If you are about to transfer funds or sign a reservation agreement, contact us for a quick consultation.
Bangkok Office:
17 Chan 35, Chan Road, Sathorn, Bangkok 10120
Koh Samui Office:
119/2 Moo 1, T.Bophut, A. Koh Samui, Surathani, 84320
Pattaya Office:
33/35 Moo 11, Soi Kohpai, (Soi 6 Theprasit) T. Nongprue, A. Banglamung, Chonburi, 20150
Phone: +662 212 6866-7
Fax: +662 213 3124
Email: info@sukhothaiinterlaw.com
Whatsapp: +66846764436
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