Buying off-plan in Thailand: developer checks and payments

Off-plan condos are the most common way foreigners buy new property in Thailand, partly because Thai banks rarely lend to non-resident foreigners and developer payment plans fill the gap. They are also where most of the money is at risk, because you pay before the building exists. This guide explains the contract, the payment schedule, what protections exist and which checks to run. It is informational and not legal advice, and several points below are reported by law firms and agents and should be confirmed by an independent Thai lawyer.

The sale contract

For condominium units, the Condominium Act (section 6/2, introduced in 2008) requires developers to use a standard sale and purchase agreement prescribed by the authorities. Law-firm summaries say that a clause that departs from the form to the developer's advantage is not enforceable, and that advertising and brochures are treated as part of the offer. So:

• Ask for the standard form, and compare any developer version against it line by line.
• Put promised facilities, the completion date, the unit area and finishes, and the foreign quota allocation in the contract, not only in a brochure.
• Reservation deposits: summaries mention that since 31 January 2025 accepting reservation deposits for condominiums is a business regulated under consumer protection law. This comes from a single agent source, so ask your lawyer what it means for the deposit you are asked to pay.

Payment schedule

A typical plan is a reservation deposit, a larger instalment at signing, instalments at construction stages or on dates, and the balance at completion and transfer. Practical points:

• Tie instalments to verifiable construction milestones, not only calendar dates.
• Pay only into an account in the developer's company name, shown in the contract. Never pay into an individual's account.
• Keep each transfer's receipt and match amounts to the contract.
• Foreigners buying a condo in their own name must bring the purchase money from abroad in foreign currency and obtain the bank's FET form; when you pay in instalments, ask your bank how each instalment is documented. See the 49% quota guide.

Why there is usually no escrow

Thailand has an Escrow Act (B.E. 2551), but it is voluntary, and sources agree it is rarely used for off-plan condominiums because developers want the instalments to fund construction. In practice your instalments usually go to the developer's own account. If the project stalls, the money may already have been spent. That is why the checks below matter, and why your remedy in a dispute is a claim against the developer, not a release from an independent holder.

Approvals and developer verification

Before paying, ask for and have your lawyer check:

• The developer's company registration, directors, paid-up capital and litigation history, including any lawsuits from earlier buyers. The Office of the Consumer Protection Board (ocpb.go.th) has taken action against developers in the past, so ask whether complaints exist.
• Finished projects by the same developer that you can visit and talk to residents about.
• The land title for the site (chanote), who owns the land, and whether it is mortgaged. A project mortgage should have a release mechanism for units sold.
• The building construction permit and, for projects over a certain size, the environmental impact assessment (EIA). One source gives the trigger as 80 or more units or more than 4,000 square metres; the rules are more detailed, so ask your lawyer. A missing or contested EIA can stop construction, as has reportedly happened with projects in Phuket.
• The foreign quota allocation in writing, as described in the quota guide.

Our general due diligence checklist and how to verify a developer abroad go through the same steps in more detail.

Delays and remedies

Reports from agents describe delays of 12 to 24 months as not unusual, and there are reports of developer insolvencies in Phuket; we cannot confirm names or totals, so use them as a reason to check, not as statistics.

If a project is late, the law as summarised by Thai law firms gives you some tools:

• A delay penalty. The standard contract is reported to provide for a penalty of at least 0.01% of the price per day, capped at 10%.
• Termination and refund. If the completion date is missed, the buyer may reportedly terminate and demand a refund of the payments made, with interest at 3% a year (the rate reported since April 2021) from the day the developer received each payment.
• Warranties. Reported defect warranties are five years for the structure and two years for other parts.
• Consumer procedure. Condo buyers are described as consumers under Thai consumer case procedure, with no court filing fee, a simpler process and the burden of proof shifted to the developer. You can also complain to the Office of the Consumer Protection Board.

These rights are only as good as the developer's ability to pay. A refund claim against an insolvent company may recover little. Keep every document and message, and take advice early.

For Russian-speaking buyers living in the EU

• Documents. Passport, reservation and sale contract, receipts, and the developer's registration documents. If you sign through a representative, the power of attorney needs notarisation, apostille and Thai translation.
• Banks. Pay from your own account in your own name. The sending bank may ask for the contract and the purpose of each instalment, and for evidence of the source of funds; prepare them. Our guide on sending money abroad for a property purchase lists the usual questions. Avoid third-party payers and any request to split or relabel payments.
• Sanctions and compliance. If your funds or counterparties raise sanctions or AML questions, discuss them with your lawyer before paying. We work only with transparent, lawful transactions.
• Visas. The purchase does not give residency; see visa options for property buyers.

FAQ

Is my money protected in an off-plan purchase in Thailand? Not by escrow in most cases. Protection comes from the standard contract, the consumer rules and the developer's solvency.

What delay penalty applies? The standard contract is reported to provide at least 0.01% of the price per day, capped at 10%. Check your contract.

Can I get a refund if the project stalls? Reportedly yes, if the contract deadline is missed and you terminate, with interest; collecting it depends on the developer's finances.

Do I need an EIA? Larger projects do; one source gives 80 or more units or more than 4,000 square metres as the trigger. Ask your lawyer for the specific requirement.

Where can I complain? The Office of the Consumer Protection Board and Thai courts; ask your lawyer which route fits.

How we help

We are a trilingual platform that finds properties in Thailand and coordinates independent local lawyers and tax advisers for contract and developer checks. Browse listings in Thailand and use our calculators to test the numbers. This text is informational and is not legal, tax or investment advice; rules change, so verify current requirements with a Thai lawyer.