Buying
Risks of buying a condo in Thailand and what to check before the deal
"What is the catch?" Almost everyone asks this when they first look at condos in Thailand. There is no catch in the system itself, but there are typical buyer mistakes. We have gathered them in one place, along with a checklist of what to verify.
In short
- The main risks come not from the law but from choosing the property and paying the wrong way.
- Check the quota, the developer, the contract and all future costs before you reserve.
- Do not trust verbal promises of returns or "the last discounted unit".
Risk 1. The unit is in the wrong quota
A foreigner can register a condo in their own name only within the Foreign Quota. If the building's quota has run out, the unit can only be bought in another form, for example through a long-term lease. That is not always bad, but the price and your rights will be different. What to check: which quota the unit is in, and whether there is written confirmation from the developer or the juristic person.
Risk 2. The money was transferred the wrong way
To register under the Foreign Quota, you must prove the money came from abroad. Cash, transfers from third parties, or from a Thai account with no history can cause problems at the Land Office. What to check: the payment route and which document the bank will issue, before the first large payment.
Risk 3. The developer and timelines
A new development is sold before it is built. Completion dates can slip, and in the worst case the project can stall. What to check: how many projects the developer has already completed and whether on time, who owns the land, whether there is a building permit, and what the contract says about delays.
Risk 4. Promised returns
"Guaranteed 8% a year" in an ad can mean anything. What to check: whether the guarantee is written into the contract, who pays it, for how many years and from what money. We show an honest yield calculation in Investing in a condo in Pattaya.
Risk 5. Short-term rentals without a licence
Renting a condo to tourists by the night is not allowed everywhere: it is governed by the hotel law and the building's own rules. What to check: the juristic person's rules and the rental model, if your numbers depend on it. More in Long-term or short-term rental.
Risk 6. A villa through a Thai company
Structures where land is registered to a Thai company with nominee Thai shareholders purely to get around the ban on foreign land ownership are not a safe alternative. What to check: what right to the land you actually get and on what legal basis, ideally with an independent lawyer.
Risk 7. Hidden costs
Buyers see the price of the condo but forget about the Sinking Fund, the Maintenance Fee a year in advance, registration fees and furniture. What to check: a full breakdown of costs up to key handover. See the example in How much it costs to own a condo.
Checklist before you reserve
- Who the developer or seller is, and which projects they have completed
- Who owns the land
- Form of ownership: Foreign Freehold, Leasehold or other
- What is included in the price: furniture, appliances, kitchen
- The Sinking Fund and Maintenance Fee amounts
- Who pays the registration fees
- Payment schedule and reservation refund terms
- Terms for reassigning the contract before completion
- Rental rules in the building
- Real rental rates in similar complexes
- Construction timeline and what happens if it is delayed
FAQ
What is the catch when buying a condo in Thailand?
There is no catch in the system, but there are typical mistakes: a unit in the wrong quota, paying the wrong way, an unreliable developer, verbal promises of returns.
Is it safe to buy a villa through a Thai company?
Structures with nominee Thai shareholders set up purely to get around the ban on foreign land ownership are not a safe alternative.
What should I check before reserving?
The developer, the land, the form of ownership, all future costs, the payment schedule, reservation refund terms and the building's rental rules.
Sources
- Condominium Act B.E. 2522, section 19 bis: the 49% limit
- Land Code: restrictions on land ownership by foreigners
- Hotel Act B.E. 2547 (2004), official English translation
- Avalon guide: what to check before buying (in Russian)
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.
