The most common mistakes when buying property in Thailand

The Phuket property market is attracting more and more foreign buyers - and for good reason: prices are competitive, demand for short-term rentals is stable, and Thai law allows full ownership of an apartment (freehold condo) by a foreigner. Yet the most common mistakes when buying property in Thailand repeat year after year and almost always come down to the same things: skipped due diligence, a flawed document or trust placed in the wrong person. Below you'll find a rundown of ten pitfalls seen in practice - and concrete tips on how to avoid each one.

Mistake 1: No independent lawyer of your own

This is without doubt the most expensive mistake in the "I thought I was saving money" category. The developer is happy to offer the help of their lawyer - free of charge, smoothly, with no communication problems. The catch is that this lawyer represents the developer's interest, not yours. They won't flag weak clauses in the contract, won't challenge a payment schedule with no penalties, and won't point out the lack of escrow or unchecked encumbrances on the land.

An independent, Thai-trained lawyer working solely for the buyer usually costs 30,000-60,000 THB for standard due diligence and contract review. That's less than 1% of the value of a typical Phuket investment. See how the entire property purchase process in Thailand works step by step, and where the lawyer's role is crucial.

How to avoid it: Engage a lawyer before signing any contract - even a reservation agreement. Make sure they have no ties to the developer or the agent selling the property.

Mistake 2: An unverified developer when buying off-plan

Buying a property under construction (off-plan) usually offers the best prices and the chance to choose the floor or the view - but the risk is proportionally higher than with a finished unit. Buyers who focus solely on renders and the sales pitch skip the questions that should come first: How many projects has this developer completed? Were there delays? What was the quality of the finish? Is there a previous project by the same entity that has been registered as a condominium?

Phuket is home both to reputable developers with a long track record and to companies set up specifically for a single project - with no history, no financial safeguards, no experience managing a finished building. The difference between them is hard to judge without verification.

How to avoid it: Ask the developer for a list of completed projects. Visit at least one of the finished buildings and talk to owners or the manager. Check the company's entry in the Thai commercial register (DBD - Department of Business Development). You'll find more about available projects in the property in Thailand section.

Mistake 3: Not checking the available foreign quota (49%)

Thai law allows foreigners to own a combined maximum of 49% of the total usable floor area of units in a given condominium building. This isn't a limit on paper - it's an actively monitored and enforced rule. When the quota is exhausted, the Land Office will refuse to register freehold title in a new foreigner's name, even if the sale-and-purchase agreement is signed and the money has been transferred.

The problem arises particularly in older, popular seafront complexes where interest from foreign investors has historically been high. Sellers on the secondary market don't always disclose this situation in advance - either because they don't verify it themselves, or because they're counting on the buyer's lack of awareness.

How to avoid it: Before signing a reservation agreement, request in writing from the building's juristic person a current certificate of the foreign quota level in the building and confirmation that the limit is available for the specific unit. See also: can a foreigner buy property in Thailand.

Mistake 4: A missing or incorrect FET document

The Foreign Exchange Transaction Form (FET) is a certificate issued by a Thai bank confirming that the funds used to buy the property came from abroad in a foreign currency and were converted into baht in Thailand. Without this document, the Land Office won't register freehold ownership for a foreigner. Without it, you also can't legally repatriate the proceeds from selling the property back abroad.

The mistake isn't only the absence of the document - an equally common problem is incorrect content. If the name on the FET doesn't exactly match the passport and the contract, if the amount doesn't cover the full purchase price, or if the transfer wasn't marked with the correct transaction purpose - registration becomes complicated or impossible.

How to avoid it: With every transfer to Thailand, clearly state the purpose: property purchase. Keep all transfer confirmations and the original FET documents from the bank. Make sure the personal data on the FET is identical to that in your passport and the contract.

Mistake 5: Nominee companies to circumvent the land-ownership ban

The ban on land ownership by foreigners in Thailand is real and strictly enforced. Historically, some buyers tried to get around it by setting up a Thai company with an appropriate share structure: 49% for the foreigner, 51% for Thai "shareholders" (nominees) who were in fact figureheads with no real financial involvement or decision-making power.

Today this arrangement is actively combated by the Land Department and other Thai administrative bodies. Inspections focus precisely on companies where the majority Thai shareholders have no real contribution or economic interest. Detecting such a structure risks a forced sale of the property and legal sanctions against the owner.

How to avoid it: If you have your heart set on a villa or house with land, consider the legal options - a 30-year leasehold registered at the Land Office, superficies or usufruct. Each of these options has its own limitations, but none exposes you to the loss of your investment and legal consequences. Before choosing an ownership form, consult an independent lawyer.

Mistake 6: Believing in leasehold "30+30+30" clauses

Leasehold villa offers almost always include a "promise" to renew the lease for another 30 years once the first agreement expires - and sometimes once more, giving 90 years in total. It sounds like a convenient solution. The problem is that the Thai Supreme Court, in several landmark rulings, has treated automatic-renewal clauses as a circumvention of the rules limiting property leases to 30 years.

The maximum lease term under Thailand's Civil and Commercial Code is 30 years. A clause promising automatic renewal for another 30 years is - under current case law - unenforceable as a property right. At most it can form the basis of a damages claim against the previous owner, but it gives no right to continue using the property after the first agreement expires.

How to avoid it: Treat every leasehold agreement as a real 30 years - no more. When planning a long-term investment, consider a freehold condo. Read a detailed discussion of the differences in the article buying a condo in Thailand as a foreign buyer.

Mistake 7: No escrow account when buying off-plan (escrow)

When buying a property under construction, you pay instalments long before the unit is handed over. If the developer halts work, goes bankrupt or disappears from the market - without escrow your funds are effectively unsecured. You can pursue a refund through the courts, but proceedings in Thailand can be lengthy, and a phantom developer rarely has assets worth enforcing against.

An escrow account is an arrangement in which the buyer's funds are held by an independent institution (a bank or law firm) and released to the developer only after specific, verifiable construction milestones are reached. A good developer accepts this form - because they're confident in their delivery. A weak developer refuses it, which in itself should be a warning sign.

How to avoid it: Before signing the contract, ask about the option of paying instalments into escrow. If the developer doesn't offer it, consider whether the project is sufficiently financially secure. Alternatively, ensure detailed penalty clauses for failing to complete the project on time.

Mistake 8: Ignoring maintenance fees and the quality of building management

The purchase price is only part of the investment cost. Every condo in Thailand charges a CAM fee (Common Area Maintenance) - a monthly charge for maintaining the common areas, pool, reception, security and other amenities. A typical rate in Phuket is 50-120 THB per square metre of unit area per month. On top of that comes the sinking fund - a one-off payment into the renovation fund at handover (usually 600-1,000 THB per square metre).

Even more important than the level of the fees is the quality of building management. A weak manager translates directly into deterioration of the building's technical condition, owner conflicts, reduced appeal to tenants and - consequently - a fall in the unit's market value. A manager who doesn't publish regular financial statements for the owners' association should raise suspicion.

How to avoid it: Before buying, check: what the monthly CAM fee is, whether it has been raised in recent years and on what basis, who manages the building and whether owners have a real say in replacing them. Ask for the association's financial statement for the last year.

Mistake 9: Buying without verifying the title and encumbrances at the Land Office

Thailand has several categories of legal title to property, and only a Chanote (Nor Sor 4 Jor) gives full, cadastre-confirmed ownership with surveyed boundaries. Other documents - Nor Sor 3, Sor Kor 1 or merely a building permit - offer weaker legal protection and can be undermined or challenged.

On the secondary market you also come across properties encumbered by a mortgage that the seller didn't disclose to the buyer, or with ongoing court proceedings over ownership. Verification at the Land Office allows you to detect these encumbrances before the transaction - once it's finalised, the buyer acquires the property along with any problems attached to it.

How to avoid it: Ask your lawyer to officially check the title at the Land Office for the specific unit before signing the contract. Make sure the title is a Chanote, not a weaker category. Check encumbrances, mortgages and any notes about proceedings. Read more in the article how to buy property in Thailand.

Mistake 10: Inconsistent personal data across documents

This is a technical mistake that, at the contract-signing stage, seems like a minor formality - and one that can block ownership registration or make it impossible to later transfer funds back home. It concerns the consistency of the data across all transaction documents: on the bank transfers, on the FET, on the sale-and-purchase agreement (SPA) and on the title deed (Chanote).

The most common discrepancies: a transfer made from a couple's joint account while the property is registered in only one name; different renderings of a first name (e.g. a shortened form vs. the full name from the passport); a typo in the surname that appeared in one document and "carried through" the whole process. The Land Office is rigorous on this point - inconsistency is grounds for refusing registration or requiring costly corrections.

How to avoid it: From the first transfer through every subsequent document - always use exactly the same form of first name and surname as it appears in your passport. If you plan to buy with a spouse or partner, decide in advance whose name the property will be registered in, and align all transfers and bank documents accordingly.

You'll find a full discussion of the ownership rules for foreigners in the article can a foreigner buy property in Thailand. Current Phuket investment listings that have passed our vetting can be found in the property listings section.

This article is informational and general in nature - it does not constitute legal, financial or tax advice. Thai legislation, case law and administrative practice may change. Before making a purchase decision, consult an independent lawyer specialising in Thai property law. Last updated: 6 June 2026.