5 things to look for in a Thai property contract review
The sale and purchase agreement is legally binding the moment you sign. Thai contracts often read shorter than Western equivalents, but omitted clauses hurt foreigners most. An SPA defines price, payment schedule, transfer date, defect liability, and default remedies.
At Thai Visa Centre in Bangkok, we tell every property buyer: lawyer review before deposit. These five contract points catch the majority of disputes. Pair review with our due diligence checklist and engage a property lawyer who represents you alone.
Sale and purchase agreement binds buyer and seller before Land Department transfer.
Lawyer review before any reservation fee or binding payment.
Negotiate refund conditions tied to due diligence and quota.
English translation must align with Thai text executed at signing.
Why contract review matters
Agents facilitate sales. Lawyers protect buyers. Fraud cases often involve forged titles or misrepresented leasehold. Review catches these before money moves. Registered transfer requirements are set by the Department of Lands.
Key point: If any party cannot understand the contract language, execute bilingual Thai and English versions. Both must align. The Thai version typically controls at Land Office.
Five essentials in every review
Your lawyer should verify all five items below before you sign or pay deposit. Missing any one creates transfer-day disputes or unrecoverable deposits.
Accurate property description
Unit number, floor, area in sqm, title deed reference, and project name must match Land Department records. Vague descriptions invite substitution fraud.
Payment schedule and deposit refund
Deposit typically 10 to 15 percent with full refund if due diligence fails or foreign quota unavailable. Final balance pays at transfer, not before title is clear.
Transfer timeline and penalties
Fixed transfer date or objective completion trigger for off-plan. Daily penalty for seller delay. Buyer default clause must not forfeit entire deposit for minor breach.
Fee and tax allocation
Explicit statement of who pays transfer fee, stamp duty, withholding tax, specific business tax, and CAM arrears. Silence defaults to last-minute negotiation at Land Office.
Bilingual consistency
Contracts executed in Thai and English must align. If only Thai is binding, ensure certified translation reviewed by your lawyer. Verbal agent promises are unenforceable unless written into SPA.
Payment schedule checklist
Never pay full price before mortgage discharge confirmation on resales. Off-plan buyers tie milestone payments to verified construction progress.
| Element | What to verify |
|---|---|
| Deposit amount | Typically 10 to 15%; cap if possible and tie to due diligence |
| Refund conditions | Full refund if title fails, quota unavailable, or mortgage not discharged |
| Milestone payments | Off-plan stages tied to construction verification, not marketing renders |
| Final balance | Pay at Land Department transfer after mortgage discharge confirmed |
Off-plan additional clauses
Off-plan SPAs need stronger default and refund language than resale contracts. Developer insolvency is a real risk in slow markets.
- Developer insolvency or default with refund plus interest
- Construction standards and defect warranty period
- Furniture inclusion list if marketed fully furnished
- Rental guarantee treated as commercial promise with solvency verification
Leasehold vs freehold language
Pattaya and resort markets sometimes sell 30-year lease as ownership. Contract must state leasehold clearly with registered lease term and renewal mechanics, not ambiguous full ownership marketing.
See our property law hub for ownership rules overview.
Common contract mistakes
These errors appear in Bangkok and resort-city disputes every month. Independent lawyer review before deposit prevents most of them.
- Signing developer template SPA unmodified
- No subject-to-due-diligence clause before deposit
- Accepting personal cheque to agent instead of escrow or developer account
- Ignoring juristic approval requirement for resale in some buildings
- Buying without visa plan for long-term stay and property management
Coordinate contract signing with your visa timeline if you need long-stay status to manage the property after completion.
Frequently asked questions
General answers for expats reviewing Thai property contracts. This is orientation, not legal advice for your specific transaction.
Q:Can I use the seller's lawyer?
A:Conflict of interest. Retain independent buyer counsel registered with the Lawyers Council of Thailand who owes duty to you alone.
Q:Is a one-page contract enough?
A:Only if it covers all five essentials: property description, payment terms, transfer timeline, fee allocation, and bilingual consistency. Rare in practice.
Q:What if agent says standard contract everyone signs?
A:Standard does not mean safe for you. Developer templates favour the seller. Independent review identifies one-sided clauses before you bind yourself.
Q:Should contract review happen before due diligence?
A:Review SPA before signing. Due diligence runs in parallel or immediately after subject-to-clear-title deposit. Never pay large sums without both.
Q:How do leasehold contracts differ?
A:Leasehold SPAs must state registered lease term and renewal mechanics clearly. Ambiguous full ownership marketing language is a red flag in resort markets.
Q:Who registers the transfer after SPA signing?
A:Buyer and seller attend Land Department or appoint licensed attorney. SPA alone does not transfer title. See our Land Department registration guide.
Q:Can verbal promises from agents bind the seller?
A:No. Only written SPA terms are enforceable. Insert every material promise into the contract before signing.
Q:What official body confirms registered transfer requirements?
A:The Department of Lands registers transfer after SPA terms are fulfilled, fees paid, and foreign buyer documentation verified.