Buying off-plan means committing to a property before it is built and paying for it in stages. In Thailand the process is well established, and for condominiums a mandatory standard contract gives the buyer real rights. The weak point is the money. Thailand has no mandatory escrow, so instalments are paid to the developer and can be spent on the project. If the developer fails before completion, you hold a claim, not a property.
The stages
| Stage | What happens | What to check first |
|---|---|---|
| 1. Reservation | You sign a reservation contract and pay a fee to hold a unit at a stated price | The draft sale contract, the developer and the land |
| 2. Sale and purchase agreement | You sign the full contract and pay the contract deposit | That it follows the standard form, and the foreign quota allocation |
| 3. Staged payments | Instalments fall due during construction | Each payment against actual progress, with remittance evidence for each |
| 4. Inspection | You inspect the finished unit and list defects | That defects are fixed before you accept |
| 5. Transfer | Title is registered at the Land Office and the balance is paid | Quota letter, remittance evidence, fees and taxes |
Payment schedules vary by developer. The more of the price that is held back to transfer, the less you have at risk during construction.
Reservation
Since early 2025, selling condominium units by reservation has been a contract-controlled business under a notification of the Contract Committee of the Office of the Consumer Protection Board. The reservation contract must be in Thai and follow the prescribed form.
The form gives the buyer a right to terminate and recover the reservation fee where the developer fails to obtain environmental approval or a construction permit, does not enter the sale contract on time, or changes the project or materials without consent. A buyer whose loan is refused within the agreed period is also released. Refunds are due within 15 days for cash or bank transfer and 45 days for card payments. The developer may keep the fee only if the buyer fails to sign the sale contract on time.
Ask to see the draft sale and purchase agreement before paying anything.
The sale and purchase agreement
Since 4 July 2008, Section 6/2 of the Condominium Act has required contracts between a developer and a buyer to follow the form prescribed by the Minister of Interior, known as Or Chor 22. Any term that departs from the form and is less favourable to the buyer has no effect, and a developer that does not use the form faces a fine of up to THB 100,000. Section 6/1 makes the developer's advertising and brochures part of the contract.
The form is in Thai. English versions are translations, so have a Thai lawyer compare the two. The form requires:
- confirmation of the developer's land ownership and disclosure of any mortgage over it;
- confirmation that a construction permit has been granted and that the building will be registered as a condominium;
- a fixed completion date and transfer date;
- a cap on interest for late payment by the buyer of 15% a year, and 10% of the price in total, with written notice before termination;
- the buyer's right to assign the contract without an assignment fee;
- a limit of one year on suspension of construction for reasons outside the developer's control;
- the developer to pay its own income tax, specific business tax and stamp duty, with the transfer fee shared equally.
An off-plan villa, sold as a land lease with a building contract, is outside the standard form. See buying a villa in Thailand.
What protects you, and what does not
No mandatory escrow. The Escrow Act B.E. 2551 (2008) lets a licensed escrow agent, usually a bank, hold a buyer's payments until the developer performs. Neither that Act nor the Condominium Act obliges a developer to use it, and genuine escrow in off-plan sales is rare. Ask whether it is offered.
What stands in its place:
- Track record. Completed projects, delivered on time, by the same legal entity that is selling to you. Visit one and speak to the juristic person there.
- The land. The developer should own the site under a Chanote. If the site is mortgaged to a construction lender, the contract must disclose it, and the mortgage must be released from your unit at transfer.
- EIA approval. A condominium of 80 units or more, or with 4,000 sqm or more of usable floor area, needs an approved environmental impact assessment. Sales can open before approval is granted, which is why the reservation form deals with the case where it is refused. Until approval is in place the project may change or not proceed.
- Construction permit. Ask for a copy. The standard contract requires the developer to confirm it.
- Construction-linked payments. A schedule tied to milestones such as foundation, structure and topping out keeps your payments in step with the asset. A schedule tied only to calendar dates does not.
- Foreign quota. The contract should state that your unit is allocated to the foreign quota for freehold registration in your name, with a refund if that cannot be done.
None of these is a guarantee. The wider checks are set out in title deeds and due diligence.
Paying the instalments
A foreign buyer of a freehold unit must show the Land Office that the whole price came from abroad in foreign currency. That applies to every instalment over the construction period. Send each one in foreign currency, state the purpose, and collect the Foreign Exchange Transaction Form or bank evidence each time. Where you pay the developer's account directly, the developer's bank issues the form, so ask for it in writing after each payment. Sending money to Thailand gives the wording.
Delay and defects
If the developer misses the transfer date, the standard form gives two remedies. You may terminate and recover all payments with interest. Or you may keep the contract and claim a daily penalty of at least 0.01% of the price, capped at 10%, after which you may terminate.
The form sets minimum defect warranties of five years for the structure and fixed building equipment and two years for other components. It is not settled whether these run from the registration of the condominium or the registration of your ownership, so have your lawyer confirm it in your contract.
Remedies against an insolvent developer are worth little, so they rank behind the choice of developer.
Inspection
Before transfer you are invited to inspect. Take the unit specification and floor plan from the contract and check area, finishes, fittings, water pressure, drainage, air conditioning and electrics. Put defects in writing and re-inspect once they are fixed.
Do not accept the unit, or pay the balance, on the strength of a promise to repair later.
Transfer at the Land Office
A condominium can be transferred once the building is complete and registered as a condominium. On the day, ownership is registered and the unit title deed is issued in your name. You or your lawyer will need your passport, the remittance evidence for the full price, and the letter confirming foreign quota.
Fees and taxes are collected at the same time. Under the standard form the 2% transfer fee is split equally and the developer bears its own taxes. You will also pay the one-off sinking fund contribution and common-area fees in advance, as the contract provides. Estimate the total with the purchase cost calculator, and see property taxes and buying costs.
Buying off-plan property in Thailand: what to consider
An off-plan price should sit below that of a comparable completed unit, because the buyer carries construction risk, delay risk and market risk until handover. Whether the discount is adequate depends on the developer. Any rental return described at launch is the developer's projection or contractual offer, and should be read with its term and who stands behind it. Take independent legal advice before you sign the reservation.
