A typical plan has four parts: a reservation deposit, a larger payment on signing the sale and purchase agreement, instalments during construction and the balance on transfer of title. The proportions vary. City condominiums are often weighted towards the final payment, while resort villas and low-rise projects tend to collect more during the build.
The shape of the plan decides how much is at risk. Thailand does not require developers to hold stage payments in escrow, so everything paid before completion depends on the developer finishing. Milestone-based plans, where each instalment falls due only when a stage of construction is certified, protect the buyer better than plans tied to calendar dates.
Check the default clause: the grace period for a late instalment, the interest charged and how much is forfeited if the contract is terminated. Send each instalment from abroad in foreign currency so that it is covered by a Foreign Exchange Transaction Form or credit advice. Bank finance for foreign buyers is limited, so plan to fund the balance in cash. See the off-plan buying process and mortgages for foreigners.
