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Phuket Property: Foreign currency exchange risks

PHUKET: Many foreigners who have decided to buy a residential property in Thailand are required to use funds held in foreign currency in their country of origin.

Property transactions in Thailand utilize myriad ways in which a buyer pays the purchase price to the seller.

For instance, a buyer may be required to make payments to the seller upon signing of the Sale and Purchase Agreement, followed by installment payments in accordance with the construction’s progress and then a final payment upon completion. In some cases, full or part payment is made against registration of title transfer.

No matter what terms of payment may have been agreed between the parties, an important issue that applies to most property purchases by foreigners in Thailand is that of currency exchange.

Whenever a buyer has the currency for his property purchase in a bank account outside of Thailand and the parties have agreed to a price denominated in Thai baht (which is the usual case), the buyer is required to remit his foreign currency into Thailand in an amount equivalent to the

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