How off-plan works in Thailand

Most new condos in Thailand are sold before they are built. The buyer’s main protection is not a bank guarantee but a contract: since 2008 the Condominium Act has forced developers to use a standard form, and any term that strays from it is invalid. Escrow exists, but only if both sides choose it. In 2026 the bigger commercial risk is oversupply, in Phuket and Pattaya above all. Your job as an agent is to check the contract, the developer and the money trail before the buyer pays.

The short version

1. A developer’s condo contract must follow the Ministry of Interior standard form under section 6/2 of the Condominium Act. Non-conforming terms are invalid, and the fine is 100,000 baht (section 63).
2. The contract must set a transfer date with 30 days’ notice, cap any construction halt at one year, give 5 years of structural defect liability and 2 years for other parts.
3. The buyer may assign the contract without a fee, and late delivery costs the developer at least 0.01% a day, capped at 10%.
4. Escrow is voluntary under the Escrow Act B.E. 2551 (2008). Most buyers pay the developer directly, in stages.
5. A reservation fee usually holds the unit. Whether it is refundable depends on the clause.
6. Foreign buyers need room in the 49% quota and must send money from abroad in foreign currency, with an FET form from USD 50,000.
7. Developers pay agents 3% to 5%, and 5% to 7% on some exclusive deals (Leto, May 2026).

The standard contract

Section 6/2 was added to the Condominium Act in 2008. Siam Legal explains that it requires condo sale contracts to follow the Ministry of Interior standard form, and that terms not in line with it are invalid. Section 63 sets a fine of 100,000 baht for breaches. The duties that matter most to a buyer:

Duty	What the contract must give
Transfer date	A stated date, with 30 days’ notice to the buyer
Construction	A halt of no more than one year
Defects	5 years for the structure, 2 years for other parts
Assignment	The buyer can transfer the contract to someone else without a fee
Late delivery	A penalty of at least 0.01% a day, capped at 10% of the price

When a developer’s contract looks different from these terms, the buyer’s lawyer should review it before signing.

Escrow is a choice, not a rule

Thailand Law Online explains that the Escrow Act B.E. 2551 (2008) applies only when buyer and seller agree to use a licensed escrow agent. No law obliges a developer to use escrow. In practice most buyers pay the developer directly, in stages. Never describe a project as “escrow-protected” unless the contract and the escrow agent’s documents say so.

Reservation and staged payments

Thailand Law Online describes the usual sequence:

1. A reservation fee to hold the unit before the sale agreement.
2. A contract deposit at signature.
3. Instalments during construction.
4. The balance at transfer, at the Department of Lands.

Reservation agreements vary. Before the buyer pays, read the clause on refunds: what happens if the buyer withdraws, if the developer changes the unit, or if the quota is full.

Worked example

These figures are illustrative only. The contract decides.

A new condo at 4,300,000 baht, close to the first-half 2026 foreign average of 4.3 million baht and 43.9 sqm (The Nation, September 2026), bought by a foreign buyer.

Stage	Payment	Paid to date
Reservation	50,000 baht	50,000 baht
Contract deposit	380,000 baht	430,000 baht
Construction instalments	860,000 baht	1,290,000 baht
Balance at transfer	3,010,000 baht	4,300,000 baht

If the building is delivered 100 days late, the penalty at the minimum rate is 4,300,000 x 0.01% x 100 = 43,000 baht. The cap of 10% is 430,000 baht.

At transfer (Storm Real Estate Phuket, September 2026), assuming the appraised value equals the price: the transfer fee of 2% is 86,000 baht, shared as the contract says. The developer, being in the real estate business, pays SBT of 3.3%, 141,900 baht, and withholding tax of 1% as a company. A Thai buyer of a home up to 7 million baht would pay a transfer fee of only 0.01% until 30 June 2027. Foreigners pay the full 2%.

Foreign buyers: quota and money

• The 49% quota. A foreigner can own a unit freehold only while the foreign-owned area stays within 49% of the building’s saleable floor area. Ask the developer, in writing, how much foreign quota is left before the buyer reserves (Bektu, June 2026).
• The FET form. To register the unit in a foreigner’s name, the money must arrive from abroad, in foreign currency, and the receiving bank issues an FET form, typically for transfers of USD 50,000 or more (Storm Real Estate Phuket). Every instalment should follow the same route.
• No 99-year leases, no 75% quota. Both were proposed in 2024 and did not become law (Bektu).
• Extra checks in late 2026. Since 19 October 2026, purchases above 2 million baht face extra checks under the nominee crackdown (Thai Examiner).

Villas and houses off plan

A foreigner cannot own the land under a villa. Off-plan villas are usually sold with a registered lease of up to 30 years. Renewal clauses such as 30+30+30 are promises in a contract, and courts generally enforce only the first registered term (Bektu). The condo standard contract in section 6/2 covers condominium sales, so a villa contract needs its own careful review.

Where new-build supply is

• Phuket. Krungsri Research (August 2026) reports launches down 52.6% to 7,205 units and sales down 61.1% in 2025, with 14,008 unsold units worth 193.7 billion baht. Villa absorption fell to 1.8% a month, about 50 months of stock, at an average villa price of 44.8 million baht. Forecasts for 2026: launches down 4.2%, sales down 7.3%.
• Pattaya. Pattaya Mail (February 2026) describes structural oversupply, worst in Jomtien and the southern beachfront, with developers offering discounts and flexible payment terms. Myanmar buyers are the main new demand.
• Koh Samui. A primary market of 2,882 units in 117 projects worth 30.3 billion baht, 52% condos and 48% villas (Samui Property Group, May 2026, mostly from C9 Hotelworks data of June 2025).

Oversupply gives buyers room to negotiate, and it makes the developer’s finances more important. A project that is selling slowly is a project that may finish late.

What to check on the developer and the project

• The contract follows the standard form, with transfer date, defect and penalty terms.
• Whether escrow is offered, and the escrow agent’s details if it is.
• The reservation clause: amount, refund terms, deadline for the sale agreement.
• The payment schedule and the account each payment goes to.
• The foreign quota left in the building, in writing.
• The developer’s finished projects, and whether their buyers received units on time.
• Who pays the transfer fee at completion.
• For villas, the lease terms and what is registered.

Red flags

• A contract that does not match the standard form, or a developer who refuses to show it before payment.
• “Escrow-protected” in the marketing with no escrow agreement.
• A non-refundable reservation with no clear deadline.
• A promise of 99-year leases, a 75% quota or a guaranteed 30+30+30.
• Payments requested in baht from a Thai account for a foreign freehold buyer.
• A Thai nominee or a paper company offered to hold land.
• Guaranteed rental returns with no explanation of who pays them.

Off-plan sales in Thailand rest on the standard condo contract more than on any guarantee law, and escrow is voluntary. This guide was checked on the date shown above. It is general information, not legal or tax advice. CloserPass is not affiliated with any developer, bank, escrow agent or government body in Thailand.

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