The sale contract and developer payment plans in Thailand

With a developer you sign a sale and purchase agreement in a standard form set by ministerial regulation, with a payment plan tied to construction. During construction the plan is usually interest-free; after completion, instalments usually carry interest. Read everything: the completion date, warranties, what happens if you pay late, refunds and assignment. Before the first payment, have the contract checked by an independent property lawyer.

Everyone reads the page with the price. Almost nobody reads the clause on cancellation by the developer – and that is where it says what happens to your money if you are late with an instalment.

The contract with the developer

A developer's sale contract for a condo unit must follow the standard form set by ministerial regulation (section 6/2 of the Condominium Act). It is usually bilingual, Thai and English.

• The payment plan and which construction stage each payment is tied to.
• The completion date and what happens if it slips: compensation, the right to cancel.
• What happens if you pay late.
• Cancellation and refund terms – on both sides.
• Assignment: can you sell the contract before completion, and at what cost.
• What is included in the price: finishes, furniture, sinking fund, share of the transfer fee.
• Which language version prevails if the Thai and English texts differ.

Developer warranties. Under the standard contract, the developer is liable for structural defects for 5 years and other defects for 2 years from the transfer. A defect claim must be filed within a year of discovering it. So take over the unit with an inspector and a written defect list.

Fees for unsold units have been paid by the developer, not by the other owners, since 2008.

Adverts are part of the contract. Under section 6/1 of the Condominium Act, the developer's texts, images and brochures form part of the contract, and any conflict is read in the buyer's favour. Keep screenshots of the adverts and the brochure.

Developer payment plans

For most foreign buyers a payment plan is the way to spread the cost: Thai mortgages for non-residents are practically unavailable.

An example from our catalogue. At Harmonia City Garden in Pattaya: a deposit of about 100,000 baht, 50 % of the price on signing (including the deposit), another 20 % in instalments over 24 months. Other projects have their own plans, which we check against the developer's price list.

Late payment: read this clause

Under typical contracts, if you are late, the developer may cancel the contract and keep what you have already paid – all of it, or after deducting 10–25 % of the price. This is a standard clause, not a scare story, and worth finding before you sign. If your income is uneven, agree a longer plan up front rather than asking for a delay later.

Every instalment is paid like the first one: from abroad, in foreign currency, with a bank confirmation. Otherwise you will not have confirmations for the full price at transfer, and the unit cannot be registered freehold. See Transferring money.

Assigning the contract

You can sell the contract to another buyer before completion – there is a market for it. But only with the developer's written consent and usually for a fee of 1–3 % of the price. It is best to have the right to assign written into the contract from the start. Assigning to a foreigner works only if the building still has foreign quota.

Resale contracts

For a finished unit you sign with the seller. Check:

• The owner on the title, and that there are no mortgages or seizures.
• A certificate from the building that the unit has no debts – without it the transfer will not be registered.
• Unpaid land and building tax.
• Who pays the seller's taxes and the transfer fee – line by line.
• Free foreign quota on the transfer date.

Do you need a property lawyer in Thailand?

Yes – your own. A lawyer recommended by the developer or the seller works for the other side. An independent Thai lawyer checks the contract before the first payment: the payment plan, dates, penalties, refunds and who pays the fees. That costs less than sorting out the terms afterwards. Where a lawyer matters most is clear from the list of pitfalls in Risks.

Power of attorney. If you will not be in Thailand to sign, documents from the US, the UK or the EU need a notary and legalisation at the Thai embassy until 28 February 2027. From that date Thailand joins the apostille convention, and an apostille from your country is enough. More in Registration.

The developer's contract is usually in Thai and English. We explain the terms about money and dates and ask the developer in Thai when a clause is unclear. But we do not replace a lawyer: for the contract check we recommend an independent lawyer working for the buyer.

FAQ