Buying property in Thailand safely: due diligence and scam checklist for foreign buyers

Most of what goes wrong when foreigners buy in Phuket is visible in the paperwork before any money moves: a condo whose foreign quota is used up, a title that is not what the brochure says, a lease that cannot be renewed, a company structure that now invites an investigation, an off-plan payment that goes straight into the developer's account. This is a practical checklist for a foreign buyer, as of October 2026. It is based on law-firm and news summaries and is not legal advice. Whatever you buy, have an independent Thai lawyer, one who does not work for the developer or the agent, check the documents. For the price levels and closing costs see Buying property in Thailand: prices, yield and what a foreigner can own.

1. Condo: confirm the foreign quota in writing

Foreigners may hold freehold title to condo units up to 49% of the total saleable area of a building (Condominium Act of 1979). The quota is counted by area, not by number of units, so a building with fewer than half of its units in foreign hands can still have no quota left if the larger units are foreign-owned. Before you pay a reservation, ask the building's juristic person (the management entity) for current written confirmation that your unit can be registered as foreign freehold. The certificate used at transfer has to be valid on the day. If the quota is gone, the alternatives are a lease or a Thai-name structure, and the second is the subject of section 4. Do not accept "we will sort it out later".

2. Know which title you are getting

• Condo unit: a separate title deed per unit (called Or Chor 2) showing the unit's area and its share of the common property. Check the unit number, floor and area against the contract, and that the deed carries no mortgage or lien.
• Land (for a villa plot): the chanote is the surveyed, full title and the one to look for. A Nor Sor 3 Gor is measured and can be dealt with much like a chanote. A Nor Sor 3 has never been surveyed, has no exact boundaries and needs a 30-day public notice before transfer.
• Agent write-ups report documents that look like a chanote but are a weaker title. Have your lawyer check the land register at the Provincial Lands Office, not only the copy you were shown.

3. Leasehold villa: 30 years is the ceiling

Section 540 of the Civil and Commercial Code says a lease of immovable property cannot exceed 30 years; a longer term is cut to 30. A lease of more than 3 years has to be registered at the Land Office to bind a later owner of the land. The "30+30+30" renewals that sellers promise are not automatic: renewal needs a new agreement after the first term, and law-firm commentary reports a Supreme Court ruling that automatic-renewal clauses written into the original lease are void. Value a leasehold villa as a 30-year asset. Check that the lessor is the registered owner of the land in a fresh title search, that the land carries no mortgage, that the lease is registered, and what the remaining term does to resale (the LTR visa property route, for example, needs at least 10 years left).

4. Nominee and company structures

A foreigner cannot hold land, and for years a popular workaround was a Thai company that was Thai-owned on paper and foreign-controlled in fact. That route is now under pressure. On 25 August 2026 the Ministry of Interior sent provincial governors enhanced enforcement guidelines (circular MorTor 0515.2/Wor 19097, as summarised by Tilleke & Gibbins). Investigations are reported to look beyond the register of shareholders to the source of funds, the actual business and whether a foreigner lives at the address. In June 2026 a deputy interior minister, after visiting Phuket, said authorities were tracking public land encroachment, particularly around Bang Tao Beach, Freedom Beach and Nui Beach, and promised compulsory sales of land held by nominees. We summarised the circular in Thailand tightens enforcement against nominee land ownership. If a seller proposes a company, a Thai spouse or "friendly shareholders" to hold your land, walk away or get written independent advice first.

5. Off-plan: where your money sits

• Escrow exists in Thai law (the Escrow Act of 2008) but is voluntary. Agent write-ups say that real escrow is used in only a small share of off-plan sales, and that instalments usually go to the developer's own account and are spent on building. If the project stalls, the money is already spent.
• The law helps somewhat. The Ministry of Interior has approved a standard sale agreement for condominium units, and a delay in completion is reported to carry a penalty of 0.01% of the price per day, capped at 10%. Insist on the standard form and be wary of a contract that departs from it.
• Delays of 12 to 24 months are described as not unusual, and agent write-ups mention developer insolvencies in Phuket in 2025 that left buyers without their money or unit. We could not confirm names or totals, so read them as a reason to check, not as a statistic.
• Ask for the building permit and, for larger projects, the environmental impact assessment (EIA). One source gives the trigger as 80 or more units or more than 4,000 square metres. A missing or contested EIA can stop construction: Thai courts have ruled a Phuket beachfront development unlawfully built, and a hotel project in Cherngtalay was halted while its EIA was reviewed.
• Check the developer: finished projects you can visit, company registration and who the directors are.
• Developer payment plans are the usual route, because Thai banks rarely lend to non-resident foreigners. That makes the escrow question bigger. Tie each payment to a construction milestone you can verify.

Read how to verify a developer abroad before you pay a deposit.

6. Moving the money: the FET form (Tor Tor 3)

For a freehold condo in your own name the funds have to come from abroad, in foreign currency, into a Thai bank account in the buyer's name, for at least the purchase price, and be described as the purchase of the condo. The bank then issues a Foreign Exchange Transaction form; it does so automatically for inward transfers of USD 50,000 or more, and below that you collect credit advices and a bank letter instead. Without it the Land Department will not register the unit in a foreigner's name. The mistakes that kill deals are money arriving under someone else's name, sent in baht, or labelled a gift or an investment. Fixing that after the transfer is hard, and in some cases the money has had to be sent back and sent again. Tell the Thai bank in advance, ask which currencies it accepts, and keep your transfer confirmations.

7. Costs and who pays

The transfer fee is 2% of the appraised value, and in practice buyer and seller often split it; the seller normally bears the withholding tax and the specific business tax or stamp duty. By law the split is negotiable, so put it in the contract. For a condo, ask the juristic person for the statement of common fees and confirmation that the seller has no arrears. The figures are in the prices and yield guide.

8. How scams look in practice

• A developer that is a few months old, with polished renders and "limited-time discounts" to push a quick reservation.
• A document presented as a chanote that is really a weaker title.
• The developer's or agent's lawyer acting "for both sides".
• A reservation or deposit sent to a personal or third-party account instead of the company's.

Reported complaint statistics vary widely by source, so we do not quote them. The pattern behind most cases is the same: the buyer did not verify the document and had no independent lawyer.

The checklist

1. Get written confirmation of the foreign quota from the juristic person before a reservation. 2. Order a title search at the Land Office through your lawyer: the owner, the type of title, any mortgage or lien. 3. Check the unit number, floor and area in the contract against the title deed. 4. For a lease: check the lessor's title, the term (30 years at most), registration at the Land Office and the remaining years. 5. Refuse company, nominee or "Thai spouse" structures to hold land. 6. For off-plan: obtain the building permit, the EIA if required, the developer's track record and a site visit. 7. Insist on the standard Ministry of Interior sale agreement and a payment schedule tied to milestones. 8. Pay only to the registered company's account, never to a person. 9. Send the funds from abroad, in foreign currency, in your own name, described as a condo purchase, and get the FET form. 10. Agree in writing who pays the transfer fee, tax and common-fee arrears. 11. Hire an independent Thai lawyer who does not work for the seller, developer or agent. 12. Keep copies of every payment, contract and message.

FAQ

Do I have to be in Thailand to buy? Not necessarily. A power of attorney and a Thai lawyer can handle the transfer, but the money transfer and quota check come first. See buying property abroad remotely.

Is a resale condo safer than off-plan? It avoids construction risk, but all the other checks still apply: quota, title, arrears, the seller's identity.

Does buying give me a visa? No. See Thailand visas for property buyers.

How we help

We shortlist property in Phuket and across the Thailand page against your goal, run you through this checklist before you commit, and coordinate independent Thai lawyers and property managers. We are not a law firm and we do not replace your lawyer's title search. This article is informational and is not legal, tax or investment advice. Rules change, so confirm them with a licensed Thai lawyer before you pay.