How to check a developer and the foreign quota in Thailand

The foreign quota in Thailand is the share of a condominium that foreigners may own: no more than 49 % of the total unit area. While the quota is open, a foreigner can own a unit freehold; once it is full, only leasehold is possible. Ask the developer or the building's juristic person for the remaining quota in writing before reserving. Check the developer by the company registry, the land title, the building permit, the environmental approval and the buildings it has already delivered.

Escrow exists in Thai law, but developers are not obliged to use it, and payments go straight to them as construction progresses. So your protection comes down to one thing: how well you checked who you are paying.

Before a reservation, we ask three questions. Whose land is the building on? Are there permits to build? What happened to this developer's previous buildings?

The foreign quota: what it is

The Condominium Act allows foreigners to own no more than 49 % of the total area of all units in a building; 51 % belongs to Thai owners.

It is counted by area, not by the number of units. Five large penthouses can use up more quota than twenty studios.

It runs out before the building does. In popular projects the foreign part sells out at launch. A unit will still be sold to you – as leasehold, a lease of up to 30 years.

It is checked on the transfer date. On resale too: if the quota is full, the Land Office will not register the unit to a foreigner, even if the seller is a foreigner. A promise of "freehold later" will not work.

How to check the remaining quota

• Ask the developer or the condominium's juristic person for a letter on the remaining foreign quota as of today.
• Get the answer in writing on letterhead, not as a chat message.
• Write into the reservation that the unit is sold freehold within the foreign quota.
• On resale, check the remaining quota again before the transfer.

We ask about the remaining quota, debts to the building and plans for the neighbouring plot directly with the developer or the building office, in Thai. In your own language many questions are answered faster and more precisely. If the quota is running out, we say so at once – sometimes it is more honest to suggest another building.

How to check a property developer in Thailand

The company. Developers are checked in the company registry of Thailand's Department of Business Development: registration date, directors, registered and paid-up capital, financial statements. If the company is listed on the Stock Exchange of Thailand (SET), its accounts are public. A private company is not necessarily worse, just harder to check – mainly by the buildings it has delivered.

The land. The plot should have a title deed – ideally a chanote, full ownership – registered to the developer's company. The land is often mortgaged to a bank to finance construction. That is normal, but the bank must release your unit before the transfer. A Land Office extract shows it.

Permits. A building permit and, for a condominium of 80 units or 4,000 m² and more, an approved environmental impact assessment (EIA), without which construction is not allowed. In Bangkok, courts have revoked permits even after sales started, so check the dates and any disputes around the project.

Track record. How many buildings the company has delivered, and how late compared with the promised dates. One delivered building is not a track record. Did earlier buyers get their units transferred? Who manages the finished buildings and how do they look a few years later?

Disputes. Buyer lawsuits, contractor disputes, regulatory claims – in public sources.

See how this looks in our developer reviews: Rhom Bho Property, listed on the SET, and Global Top Group, a private company from Pattaya. All developers in our catalogue are on the Developers page.

What to request before reserving

• Company registration and registry number.
• The land title registered to the developer, and any mortgage.
• The building permit.
• EIA approval, for a large building.
• Condominium registration (for a finished building) or confirmation it will be registered.
• The letter on the remaining foreign quota.
• A list of delivered projects with completion dates.
• Drafts of the reservation and sale contracts – before paying.

If you can, visit a finished building by the same developer. The pool, lifts and lobby a few years on tell you more than a presentation.

Walking away before the deposit costs nothing; getting money back after it can cost a court case. Next step: Reservation.

FAQ