Connect with us

Ask an Agent

What is the procedure for purchasing an off-plan property in Thailand?

Cita Catellya

Published

 on 

Photo Via: FAZWAZ

Purchasing an off-plan property is an excellent option for investors who want to obtain a property in Thailand. With an off-plan property, you can enjoy numerous benefits and flexibilities. For example, you can choose the best units and have the freedom to modify the unit you want to buy. Buying off-plan in Thailand also gives buyers an opportunity to buy a property at a lower price than an already built property with the expense of waiting for the construction to be completed. Plus, the property is likely to increase its value after construction, so buyers and investors can benefit from more significant financial rewards.

If you’re interested in buying an off-plan property in Thailand, be sure to read our guide below, so you don’t miss anything!

The Procedure to Purchase an Off-Plan Property in Thailand

Step 1. Select the unit you want and agree on terms and conditions

The first thing you need to do after you’ve found a project by a reputable Developer is to choose the unit you want. It’s vital that you understand the position of the unit you want to buy in the project, such as what amenities are available nearby.

Once you’re sure that the unit you want is the best for you, you should make sure that all parties involved agree on the major terms and conditions of the transactions. These may include:

  • The purchase price and what’s included in it. Some developers may consist of fittings and/or furniture in the price, while others may not.
  • The payment plans. Some developers may offer flexible payment plans, give a discount or include a furniture package.
  • Reservation deposit value, which will secure the unit for the buyer.
  • Whether or not the reservation deposit be refundable if the buyer conducts due diligence.
  • Taxes and transfer fees, particularly what the buyer and Developer are responsible for.
  • The schedule for upcoming payments.
  • The expected completion date for the project and the penalties that are in place should the Developer be late.

Step 2. Due Diligence

Purchasing a property from a reputable Developer with a proven track record doesn’t necessarily mean you can skip the legal due diligence process. Yes, the risk might be lower, but legal due diligence can give you additional safeguards. Be sure to get a reliable lawyer to help you with the due diligence. Your due diligence should include thorough research on the Developer’s credentials, title search, permits, contract review, and access to capital.

Keep in mind that not all deposits are refundable, subject to legal due diligence. Therefore, if you want to do legal due diligence, it’s best to make sure that the deposit is refundable.

Step 3. Reservation Agreement

Your Developer will provide the reservation agreement. The document typically outlines the general purchase terms. Additionally, it may also outline the agreed timeline associated with your investment.

Step 4. Reservation Deposit

Once you have found your perfect off-plan property and reached an agreement with the Developer, you will be asked to pay a reservation deposit. The deposit varies from Developer to Developer and market to market. However, it’s typically around 2% of the purchase price. The reservation deposit will secure the desired unit for the buyer, so it is removed from the open market. Make sure you obtain a payment slip for the transfer from the Developer.

Step 5. Review Sales and Purchase Agreement

You will usually have up to 30 days after paying your deposit to evaluate the terms and conditions of the Sales and Purchase Agreement. The Sales and Purchase Agreement contractually specify the entire project and the specifics of the unit you’re buying. Additionally, an agreement to buy or sell a property becomes legally binding at this stage, and the terms of the contract can only be changed by mutual agreement.

Step 6. First Contract Payment

The first contract payment ranges typically from 20% to 40% of the purchase price. For Thailand’s non-residents, the funds have to be transferred from an overseas bank account into the country.

Step 7. Payment Installments

Your next payment will be related to construction milestones, depending on where the project is in the build cycle. The Developer can propose rough timeframes, but payment should be tied to the accomplishment of crucial milestones in the project. Just like the first contract payment, the funds must come from overseas.

Step 8. Snag List

When your house is finished, you’ll be invited to do some ‘snagging.’ This is when you inspect your new home and point out anything that you don’t like or that isn’t up to your expectations. The snag list is usually developed two to three weeks ahead of handover. In short, it’s done to address any issues on the property.

If you’re not sure, it’s a good idea to bring a surveyor with you to perform your snagging, as they’ll be able to point out any flaws your Developer will need to address before you move in.

Step 9. Completion and Transfer

When the build of the property is complete, the Developer will issue a completion notice and will agree on a date with you to move in. You’ll have to pay the remainder of the purchase. Once they receive the money, the Developer will hand over the keys, and the property will be yours!

To complete the handover process, you do not need to be in Thailand. A third party can do it on your behalf.

And that’s it! Now that you understand the steps of purchasing an off-plan property in Thailand, it’s time to hunt down the best projects by a well-known developer. Remember, always make sure that the Developer of your desired project has a proven track record of delivering projects on time. You can make a well-informed decision and seek professional advice from Thaiger Property.

Ready to purchase your off-plan property but not quite sure if you need a Thai bank account to do it? Read our guide on whether or not a foreigner needs a Thai bank account when buying real estate

 

Get more from The Thaiger

Looking for your next home in Thailand? Let us match you with a local expert in minutes!

Thank you for your interest!

One of our agents will
reach out to you soon.

I want to:
  • Thailand (ไทย)+66
  • United States+1
  • United Kingdom+44
  • Australia+61
  • Afghanistan (‫افغانستان‬‎)+93
  • Albania (Shqipëri)+355
  • Algeria (‫الجزائر‬‎)+213
  • American Samoa+1684
  • Andorra+376
  • Angola+244
  • Anguilla+1264
  • Antigua and Barbuda+1268
  • Argentina+54
  • Armenia (Հայաստան)+374
  • Aruba+297
  • Australia+61
  • Austria (Österreich)+43
  • Azerbaijan (Azərbaycan)+994
  • Bahamas+1242
  • Bahrain (‫البحرين‬‎)+973
  • Bangladesh (বাংলাদেশ)+880
  • Barbados+1246
  • Belarus (Беларусь)+375
  • Belgium (België)+32
  • Belize+501
  • Benin (Bénin)+229
  • Bermuda+1441
  • Bhutan (འབྲུག)+975
  • Bolivia+591
  • Bosnia and Herzegovina (Босна и Херцеговина)+387
  • Botswana+267
  • Brazil (Brasil)+55
  • British Indian Ocean Territory+246
  • British Virgin Islands+1284
  • Brunei+673
  • Bulgaria (България)+359
  • Burkina Faso+226
  • Burundi (Uburundi)+257
  • Cambodia (កម្ពុជា)+855
  • Cameroon (Cameroun)+237
  • Canada+1
  • Cape Verde (Kabu Verdi)+238
  • Caribbean Netherlands+599
  • Cayman Islands+1345
  • Central African Republic (République centrafricaine)+236
  • Chad (Tchad)+235
  • Chile+56
  • China (中国)+86
  • Christmas Island+61
  • Cocos (Keeling) Islands+61
  • Colombia+57
  • Comoros (‫جزر القمر‬‎)+269
  • Congo (DRC) (Jamhuri ya Kidemokrasia ya Kongo)+243
  • Congo (Republic) (Congo-Brazzaville)+242
  • Cook Islands+682
  • Costa Rica+506
  • Côte d’Ivoire+225
  • Croatia (Hrvatska)+385
  • Cuba+53
  • Curaçao+599
  • Cyprus (Κύπρος)+357
  • Czech Republic (Česká republika)+420
  • Denmark (Danmark)+45
  • Djibouti+253
  • Dominica+1767
  • Dominican Republic (República Dominicana)+1
  • Ecuador+593
  • Egypt (‫مصر‬‎)+20
  • El Salvador+503
  • Equatorial Guinea (Guinea Ecuatorial)+240
  • Eritrea+291
  • Estonia (Eesti)+372
  • Ethiopia+251
  • Falkland Islands (Islas Malvinas)+500
  • Faroe Islands (Føroyar)+298
  • Fiji+679
  • Finland (Suomi)+358
  • France+33
  • French Guiana (Guyane française)+594
  • French Polynesia (Polynésie française)+689
  • Gabon+241
  • Gambia+220
  • Georgia (საქართველო)+995
  • Germany (Deutschland)+49
  • Ghana (Gaana)+233
  • Gibraltar+350
  • Greece (Ελλάδα)+30
  • Greenland (Kalaallit Nunaat)+299
  • Grenada+1473
  • Guadeloupe+590
  • Guam+1671
  • Guatemala+502
  • Guernsey+44
  • Guinea (Guinée)+224
  • Guinea-Bissau (Guiné Bissau)+245
  • Guyana+592
  • Haiti+509
  • Honduras+504
  • Hong Kong (香港)+852
  • Hungary (Magyarország)+36
  • Iceland (Ísland)+354
  • India (भारत)+91
  • Indonesia+62
  • Iran (‫ایران‬‎)+98
  • Iraq (‫العراق‬‎)+964
  • Ireland+353
  • Isle of Man+44
  • Israel (‫ישראל‬‎)+972
  • Italy (Italia)+39
  • Jamaica+1
  • Japan (日本)+81
  • Jersey+44
  • Jordan (‫الأردن‬‎)+962
  • Kazakhstan (Казахстан)+7
  • Kenya+254
  • Kiribati+686
  • Kosovo+383
  • Kuwait (‫الكويت‬‎)+965
  • Kyrgyzstan (Кыргызстан)+996
  • Laos (ລາວ)+856
  • Latvia (Latvija)+371
  • Lebanon (‫لبنان‬‎)+961
  • Lesotho+266
  • Liberia+231
  • Libya (‫ليبيا‬‎)+218
  • Liechtenstein+423
  • Lithuania (Lietuva)+370
  • Luxembourg+352
  • Macau (澳門)+853
  • Macedonia (FYROM) (Македонија)+389
  • Madagascar (Madagasikara)+261
  • Malawi+265
  • Malaysia+60
  • Maldives+960
  • Mali+223
  • Malta+356
  • Marshall Islands+692
  • Martinique+596
  • Mauritania (‫موريتانيا‬‎)+222
  • Mauritius (Moris)+230
  • Mayotte+262
  • Mexico (México)+52
  • Micronesia+691
  • Moldova (Republica Moldova)+373
  • Monaco+377
  • Mongolia (Монгол)+976
  • Montenegro (Crna Gora)+382
  • Montserrat+1664
  • Morocco (‫المغرب‬‎)+212
  • Mozambique (Moçambique)+258
  • Myanmar (Burma) (မြန်မာ)+95
  • Namibia (Namibië)+264
  • Nauru+674
  • Nepal (नेपाल)+977
  • Netherlands (Nederland)+31
  • New Caledonia (Nouvelle-Calédonie)+687
  • New Zealand+64
  • Nicaragua+505
  • Niger (Nijar)+227
  • Nigeria+234
  • Niue+683
  • Norfolk Island+672
  • North Korea (조선 민주주의 인민 공화국)+850
  • Northern Mariana Islands+1670
  • Norway (Norge)+47
  • Oman (‫عُمان‬‎)+968
  • Pakistan (‫پاکستان‬‎)+92
  • Palau+680
  • Palestine (‫فلسطين‬‎)+970
  • Panama (Panamá)+507
  • Papua New Guinea+675
  • Paraguay+595
  • Peru (Perú)+51
  • Philippines+63
  • Poland (Polska)+48
  • Portugal+351
  • Puerto Rico+1
  • Qatar (‫قطر‬‎)+974
  • Réunion (La Réunion)+262
  • Romania (România)+40
  • Russia (Россия)+7
  • Rwanda+250
  • Saint Barthélemy+590
  • Saint Helena+290
  • Saint Kitts and Nevis+1869
  • Saint Lucia+1758
  • Saint Martin (Saint-Martin (partie française))+590
  • Saint Pierre and Miquelon (Saint-Pierre-et-Miquelon)+508
  • Saint Vincent and the Grenadines+1784
  • Samoa+685
  • San Marino+378
  • São Tomé and Príncipe (São Tomé e Príncipe)+239
  • Saudi Arabia (‫المملكة العربية السعودية‬‎)+966
  • Senegal (Sénégal)+221
  • Serbia (Србија)+381
  • Seychelles+248
  • Sierra Leone+232
  • Singapore+65
  • Sint Maarten+1721
  • Slovakia (Slovensko)+421
  • Slovenia (Slovenija)+386
  • Solomon Islands+677
  • Somalia (Soomaaliya)+252
  • South Africa+27
  • South Korea (대한민국)+82
  • South Sudan (‫جنوب السودان‬‎)+211
  • Spain (España)+34
  • Sri Lanka (ශ්‍රී ලංකාව)+94
  • Sudan (‫السودان‬‎)+249
  • Suriname+597
  • Svalbard and Jan Mayen+47
  • Swaziland+268
  • Sweden (Sverige)+46
  • Switzerland (Schweiz)+41
  • Syria (‫سوريا‬‎)+963
  • Taiwan (台灣)+886
  • Tajikistan+992
  • Tanzania+255
  • Thailand (ไทย)+66
  • Timor-Leste+670
  • Togo+228
  • Tokelau+690
  • Tonga+676
  • Trinidad and Tobago+1868
  • Tunisia (‫تونس‬‎)+216
  • Turkey (Türkiye)+90
  • Turkmenistan+993
  • Turks and Caicos Islands+1649
  • Tuvalu+688
  • U.S. Virgin Islands+1340
  • Uganda+256
  • Ukraine (Україна)+380
  • United Arab Emirates (‫الإمارات العربية المتحدة‬‎)+971
  • United Kingdom+44
  • United States+1
  • Uruguay+598
  • Uzbekistan (Oʻzbekiston)+998
  • Vanuatu+678
  • Vatican City (Città del Vaticano)+39
  • Venezuela+58
  • Vietnam (Việt Nam)+84
  • Wallis and Futuna (Wallis-et-Futuna)+681
  • Western Sahara (‫الصحراء الغربية‬‎)+212
  • Yemen (‫اليمن‬‎)+967
  • Zambia+260
  • Zimbabwe+263
  • Åland Islands+358

    image

    Join the conversation and have your say on Thailand news published on The Thaiger.

    Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

    Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

    Cita Catellya is a journalist and content writer who covers a range of topics from medical and property to leisure and tourism. Her career began as a copywriter, where she worked with several brands in Indonesia to help them increase their online presence.

    image

    Follow Thaiger by email:

    Thailand12 hours ago

    Being privileged in Thailand and Amazing Camera work in water parks | Thaiger Bites

    Best of12 hours ago

    Amazing Floating Hotels in Thailand for 2022

    Indonesia12 hours ago

    Passengers missing after boat capsizes off Indonesian island

    Sponsored2 days ago

    Regents International School Pattaya – the only school in Thailand to offer IBDP and A Level programme

    image
    Guides12 hours ago

    Unique spa treatments to try in Thailand

    Thailand13 hours ago

    Anutin says suspected monkeypox cases in Thailand were herpes

    Chiang Rai14 hours ago

    Soldiers in Chiang Rai shoot and kill 8 drug suspects who reportedly opened fire

    image
    Join the conversation on the Thaiger Talk forums today!
    Thailand14 hours ago

    Thailand’s nightlife can officially open from Wednesday but this will be too late for many businesses

    Tourism15 hours ago

    10 Thailand-Laos bus routes starting June 15

    Chon Buri16 hours ago

    Burning rage: Chon Buri woman allegedly burns down boyfriend’s friend’s house

    Crime18 hours ago

    Prosecutors to delay indictments of suspects in Thailand’s Tangmo case

    Bangkok19 hours ago

    Bangkok’s first ‘real’ Pride parade coming up June 5

    World20 hours ago

    Almost 200 cases of monkeypox reported across the globe, according to WHO

    Thailand1 day ago

    Thailand News Today | Man jailed for threatening PM Prayut’s daughters

    Cannabis2 days ago

    Smoking cannabis recreationally is still illegal, warns Department of Public Health

    Pattaya2 days ago

    Yet another necklace theft against an Indian tourist in Pattaya

    Thailand9 months ago

    Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

    Thailand1 year ago

    Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

    Tourism1 year ago

    Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

    Phuket1 year ago

    Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

    Tourism1 year ago

    Phuket Thai food treats you need to try | VIDEO

    Thailand1 year ago

    Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

    Tourism1 year ago

    In search of Cat & Dog Cafés in Phuket Town | VIDEO

    Thailand1 year ago

    Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

    Thailand1 year ago

    Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

    Thailand1 year ago

    Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

    Thailand1 year ago

    Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

    Thailand1 year ago

    Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

    Thailand1 year ago

    Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

    Thailand1 year ago

    Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

    Thailand1 year ago

    Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

    Trending