The checklist of the buyer of real estate in Thailand: what to check before buying

What should you verify before buying an apartment or villa in Thailand? This checklist covers the ownership structure (freehold vs leasehold), the documents to request, taxes and fees, and the contract clauses where buyers most often lose money. Use it as a step-by-step plan before you place a deposit and sign anything.

All figures below are market benchmarks. Exact amounts depend on the property, the contract, the deal structure and how the parties split the costs.

1. Purpose and strategy

☐    The goal is defined: investment (rental income / resale), personal residence, or a combination of both

☐    The property type matches the goal: condo / villa / townhouse

☐    The holding horizon is clear: 3 / 5 / 10+ years

☐    Your must-haves are fixed: area, budget, infrastructure, view and privacy, liquidity, distance to the beach, school, airport

2. The numbers — not just the price

2.1. One-time purchase costs

☐    The contract price of the property

☐    Land Office registration / transfer costs: budget 1–3% (commonly around 2%, depending on the deal and how costs are allocated)

☐    Sinking fund (condos): ~50–100 THB/m², one-time and usually non-refundable

2.2. Monthly cost of ownership

☐    Maintenance fee (condo or managed estate): ~20–50 THB/m² per month

☐    Utilities benchmarks: electricity 4–7 THB/kWh, water 40–50 THB/m³

☐    Internet, minor repairs, consumables

☐    Insurance (fire cover at minimum; check the flood situation for the area)

2.3. Taxes (owner / investor)

☐    Withholding tax on rental income: a 3–15% progressive benchmark — confirm against your situation and tax residency

☐    Taxes and fees on sale: Withholding Tax / Specific Business Tax / Stamp Duty — which ones apply depends on the case. Understand in advance who pays what and how it is calculated (in resale deals, costs are usually split 50/50)

2.4. Yield (if you are buying to invest)

☐    Yield is calculated from market data, not from the sales presentation

☐    The model accounts for vacancy, seasonality, repairs, furnishing, commissions and depreciation

☐    If you outsource rentals: management company commission benchmark is 20–30%

3. Payment and source of funds

☐    You understand how the money will move (SWIFT / local bank)

☐    Payment goes to the seller’s or developer’s account, and the details match the contract

☐    For foreign buyers: bank documents for the incoming transfer are prepared in advance — in practice, proof of an overseas transfer is often required for correct title registration

Undersun Estate helps arrange transfers from any country, in any currency.

4. Agent, roles and conflict of interest

☐    You understand the roles: the seller’s or developer’s agent and a buyer’s representative are not the same thing

☐    Nobody is pushing you toward specific projects without objective reasoning

☐    Every promise — discounts, furniture packages, terms — is fixed in writing (in the offer, booking form or a letter)

5. Location and market

☐    The location matches the goal: live in it, rent it out, or resell

☐    Infrastructure and logistics verified: schools and hospitals; beaches and the actual route to them; airport in real traffic time. Check actual distances, not brochure distances. “500 m to the sea” on the masterplan can turn into 1,500 m by road, in traffic.

☐    “Invisible” risks checked: noise, construction sites nearby, roads, flooding, building density

☐    The price is benchmarked against the market — not only against “comparables” from the same developer

A local agent who knows the area will protect you from surprises with access roads and infrastructure — and will often know shorter routes to key points that Google Maps does not.

6. Ownership structure

6.1. Freehold (full ownership)

☐    By law, foreigners can hold no more than 49% of a condominium’s sellable area in freehold. You have confirmed the foreign quota is still available for your unit

☐    Your rights are clear: you can sell, gift and pass on the property within the chosen structure

6.2. Leasehold (long-term lease)

☐    You treat leasehold as what it is — a term with an end date that must be built into your exit strategy

The base registered leasehold term under Thai law is up to 30 years (registered at the Land Office), extendable twice more for 30 years each — the familiar 30+30+30. Important: an extension clause in the contract is not a guarantee of extension in practice. Every renewal is legally a new agreement. Negotiate a clause that compensates you pro rata for the unused years of the current term if the developer declines to extend.

☐    You have a plan for the end of the term: sale, renegotiation on new terms, or another scenario

6.3. What to stay away from

☐    Nominee arrangements, “grey” ownership schemes, and structures that rest on trust without clear legal protection and control

7. Documents to request before the deal

☐    Chanote — the title deed for the land or unit, depending on the structure

☐    EIA — environmental impact assessment, where the project requires one

☐    Construction Permit

☐    DBD company registration — the developer’s corporate record

☐    Encumbrances, liens, litigation and debts — checked as part of due diligence

At the early stages of a project it is acceptable that some documents are still in process. But deals on those terms should only be done with reliable, proven developers — otherwise the risk is too high.

8. Developer and project check

☐    There are completed projects you can inspect in person to judge build quality

☐    Reputation checked: delivery record, quality, how defects get fixed

☐    For off-plan: real construction progress is confirmed — by site visits, not renders

☐    For completed stock: a technical inspection has been carried out

9. The contract: traps to check before signing

9.1. Land and title

☐    The seller or developer has a documented right to dispose of the unit and the land

9.2. Deadlines

☐    There is a specific completion and handover date

☐    No “approximately” wording without liability attached

9.3. Liability for delay

☐    Compensation is specified and the payment mechanism is clear

☐    It is not symbolic — otherwise it is marketing, not protection

9.4. Installments and missed payments

☐    The payment schedule is unambiguous

☐    A grace period of 7–14 days (or another reasonable term) is provided

☐    There are no clauses where a 2–3 day delay wipes out nearly everything you have paid

9.5. Unilateral changes to the property

☐    The developer cannot downgrade materials, fittings or layout without compensation

☐    Area deviation is capped below 3–5%, with a clear price recalculation mechanism

9.6. Title registration

☐    The contract spells out who registers the title, when, who pays, and within what timeframe

9.7. Language, version priority, signatures

☐    You know which language version of the contract prevails (often the Thai one)

☐    You have a translation and legal commentary on the key clauses

☐    Every page is numbered and signed by both parties

10. Handover, management and after the purchase

☐    Handover inspection completed (for finished stock)

☐    Defects are logged in the handover act with a deadline for fixing them

☐    If you rent the property out: the management model is chosen, and the commission, reporting and responsibilities are clear

☐    All documents and payment confirmations are archived — including bank slips

The final check

Strip away the emotion, the sea and the discount: does this contract protect you — or the seller? If the answer is not obvious, we don’t sign that deal.

Need a specific property checked? Write to Undersun Estate and we will go through this checklist with you: request and verify the documents, review the contract clause by clause, calculate the full cost of ownership — fees and maintenance included — and show you market alternatives for your goal. No pressure, no marketing promises.