Buying
New developments in Phuket: how to buy a condo off-plan
Most foreigners in Phuket buy condos in new developments: the price off-plan is usually lower, and you can pay in instalments. Thai law protects condominium buyers well if you know your rights. Here is how payments work, which permits to check and what the contract says about delays.
In short
- The usual order: reservation, contract with a first instalment, payments by construction stage and the balance at handover. A 30% during construction and 70% at keys split is common.
- The developer's contract must follow the government standard form, and advertising and brochures form part of the contract.
- If handover is late, the buyer can cancel with a refund or receive a penalty. The warranty is 5 years on the structure and 2 years on the rest.
Why buy off-plan
- Price: usually lower at launch than at completion.
- Instalments: payments spread over the build, often interest-free.
- Choice: the best floors, views and layouts are available.
In return you wait for completion, so check the developer, the permits and the contract. General buying rules are in How to buy a condo in Thailand.
Payment schedule
The usual order in Phuket:
- Reservation
A small deposit, often about 100,000 ฿, secures the unit and price.
- Contract
Signed within 2 – 4 weeks, with a first instalment of usually 20 – 30%.
- Stage payments
The rest is split by construction stages, often interest-free.
- Handover
The final payment and registration of ownership at the Land Office.
A 30/70 split is common: about 30% during construction and 70% at handover. A foreigner buying freehold sends the funds from abroad in their own name, see How to transfer money for a condo.
Permits: what to check
- EIA: a residential building of 80+ units or 4,000+ m² needs an environmental impact assessment approved by ONEP. Without an approved EIA no construction permit is issued.
- Construction permit and the plot's zoning.
- Land under the project: the title in the developer company's name, whether there is a bank mortgage on the project and how it is released at handover.
- The company: registration, project history, completed buildings.
Buying before EIA approval and the construction permit is cheaper but much riskier: the project may still change or be delayed.
The contract: buyer rights
Since 2008 a developer's condo sale contract must follow the government standard form, available on the Land Department website. Terms that put the buyer in a worse position than the form are void.
- Advertising, brochures and the showroom form part of the contract. If what was promised differs from what was built, the version more favourable to the buyer applies.
- Furniture and finishes: check what the contract actually lists, not just the presentation.
If handover is delayed
Under the standard form, if the developer misses the handover date, the buyer can:
- cancel the contract and get all payments back with interest;
- or keep the contract and receive a penalty of at least 0.01% of the price per day, up to 10%.
To keep the right to the penalty, notify the developer in writing. Many contracts give the developer a grace period after the planned date; read it before signing.
Inspection and warranty
- Inspection: inspect the unit with a defect list, photos and written notices to the developer.
- Area: if the actual area differs by up to 5%, the price is adjusted; by more, the buyer may refuse the purchase.
- Warranty under the standard form: at least 5 years on the structure and built-in equipment, at least 2 years on the rest, counted from condominium registration. The developer fixes defects within 30 days of written notice.
Registering ownership
Ownership passes on registration at the Land Office, which issues the unit title. A foreigner owns freehold within the 49% foreign quota, see The 49/51 quota. Fees and taxes are in Taxes when buying a condo.
Tips
- Compare the contract with the standard form or ask a lawyer.
- Check the EIA and construction permit before the first large payment.
- Keep all the project's marketing materials.
- Check the future condominium's rental rules if you plan to rent out.
The Thai new developments we show are on Thailand property. We will help you choose a project and check the documents.
FAQ
How do you pay for an off-plan condo in Phuket?
Reservation, contract with a first instalment of 20 – 30%, stage payments during construction and the balance at handover. A 30/70 split is common.
What is an EIA and why check it?
An environmental impact assessment required for buildings of 80+ units or 4,000 m². Without an approved EIA no construction permit is issued.
What if the developer delays handover?
Under the standard contract form the buyer can cancel with a refund and interest or receive a penalty of at least 0.01% of the price per day, up to 10%.
What warranty comes with a new condo in Thailand?
Under the standard form, at least 5 years on the structure and built-in equipment and at least 2 years on the rest.
Sources
- Thai Land Department: standard condominium unit sale agreement
- ONEP: environmental impact assessment (EIA)
- ThaiLawOnline: buying an off-plan condo
- Condominium Act B.E. 2522 (1979), Office of the Council of State
This article is for general information and is not legal or tax advice. Laws, fees and project terms change: before a deal we check the current conditions for the specific property.
