Editorial
Paying for an Under-Construction Condo in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team12 min read
Buying an off-plan (under-construction) condo in Thailand means you pay in stages over months or years before you own anything. Your money goes directly to the developer - not into a protected account - so the shape of the payment schedule and the quality of the contract are the only real shields you have.
This guide breaks down exactly how staged payments work, what contract clauses matter, where your capital is at risk at each stage, and how to calculate whether the typical off-plan discount justifies the risk you carry.
Quick answer
- Staged payments are standard: reservation fee (1-3%), signing (10-30%), construction milestones (40-55% in 3-5 tranches), and handover (final 25-35%)
- No escrow protection exists for foreign buyers in Thailand - your payments go directly to the developer; contract terms and developer track record are your primary protection
- Off-plan discounts in 2026 run roughly 10-20% below comparable completed resale prices (indicative market figures, project-dependent)
- Foreign buyers can pay in Thai Baht or foreign currency, but must obtain a Foreign Exchange Transaction (FET) certificate - a bank document proving funds arrived from abroad - for any purchase of a condominium unit in the foreign quota
- Completion guarantees and delay penalty clauses vary enormously between developers; many contracts lack both - read every clause before signing
- Assignment (reselling your purchase contract before handover) is legally possible but only with written developer consent in most contracts, and fees of 1-3% typically apply
Options and scenarios
Scenario 1: Short build cycle (12-18 months)
Some smaller condo projects in Chiang Mai, Hua Hin, or secondary Phuket locations complete within 12-18 months. A typical schedule in this scenario:
- Reservation deposit: 1-3% at the moment you reserve the unit (often refundable only partially, or non-refundable)
- Sales and Purchase Agreement (SPA) signing: 20-30%, paid within 30-60 days of reservation
- Mid-construction milestone: 25-30%, triggered when the structure reaches a defined floor or completion percentage
- Handover: 35-45%, paid when the title deed (chanote - the highest grade of Thai land title, confirming full legal ownership of the plot or unit) is transferred
With a short cycle, your maximum capital at risk before handover is the SPA deposit plus one milestone payment - typically 45-60% of the purchase price. This is manageable but still significant.
Scenario 2: Standard build cycle (24-36 months)
Most large Bangkok and Phuket condo towers fall here. The payment ladder typically has more rungs:
- Reservation: 1-2% (non-refundable in most contracts)
- SPA signing: 15-25%
- Foundation/structure complete: 10-15%
- Upper floors complete: 10-15%
- Building shell complete: 10%
- Fit-out / interior complete: 5-10%
- Handover and title transfer: 25-35%
Over a 30-month build, you may have paid 65-75% of the purchase price before you hold any legal title. That is the peak risk window.
Scenario 3: Pre-launch purchase
Some developers sell units before construction permits are fully in place. Prices are lowest at this stage, sometimes 15-25% below the eventual launch price (indicative). But the risk is highest: the project may be delayed by permit issues, redesigned, or - in the worst case - cancelled. Treat pre-launch purchases as high-risk allocations, not standard property transactions.
How the payment schedule shape changes your risk over time
Consider a 5,000,000 THB unit with two different developer payment structures:
Structure A (back-loaded - more buyer-friendly):
- Reservation: 100,000 THB (2%)
- SPA: 500,000 THB (10%)
- Milestone 1 (structure): 500,000 THB (10%)
- Milestone 2 (shell): 500,000 THB (10%)
- Handover: 3,400,000 THB (68%)
Peak capital at risk before handover: 1,600,000 THB (32%).
Structure B (front-loaded - developer-friendly):
- Reservation: 150,000 THB (3%)
- SPA: 1,500,000 THB (30%)
- Milestone 1: 750,000 THB (15%)
- Milestone 2: 750,000 THB (15%)
- Handover: 1,850,000 THB (37%)
Peak capital at risk before handover: 3,150,000 THB (63%).
The final price is identical. But under Structure B, if the developer defaults at the shell stage, you have already transferred 63% of your money with no legal title as security. Always push for back-loaded schedules when negotiating.
The off-plan discount versus the risk carried
As of 2026, indicative market data suggests that a completed resale condominium unit in a comparable location trades at roughly 10-20% above the original off-plan launch price for the same project. This premium reflects the fact that the resale buyer takes on zero construction risk.
Example (indicative figures, 2026):
- Off-plan launch price for a 45 sqm unit in a Phuket mid-market project: 4,500,000 THB
- Comparable completed unit in the same building or nearby: 5,100,000-5,400,000 THB
- Discount captured by the off-plan buyer: 600,000-900,000 THB (13-20%)
Against that discount, weigh the following: you carry construction risk for 24-36 months, you tie up capital that earns no rental yield during that period, and if the project is delayed or cancelled, recovery is slow and often partial. The discount is real, but so is the cost of carrying it.
Comparison table
| Parameter | Pre-launch purchase | Standard off-plan (SPA signed) | Completed resale |
|---|---|---|---|
| Typical price vs. finished value | 15-25% below (indicative) | 10-20% below (indicative) | At or above market |
| Construction risk | Very high | Medium to high | None |
| Payment timing | Begins before permits confirmed | Begins at SPA signing | Full payment at transfer |
| Foreign FET certificate required | Yes, per instalment from abroad | Yes, per instalment from abroad | Yes, full amount at transfer |
| Title deed (chanote) received | At handover, years away | At handover | At transfer (same day) |
| Rental income during wait | None | None | Immediate |
| Delay penalty protection | Often absent or weak | Varies by contract | Not applicable |
| Assignment / resale option | Rare, developer approval needed | Possible with developer consent | Standard open market sale |
| Mortgage finance available | Very limited for foreigners | Very limited for foreigners | Limited, some Thai banks |
| Capital at peak risk | Up to 65-75% of price | Up to 55-70% of price | Zero (paid at title transfer) |
Risks and mistakes
Paying without an independent legal review
The SPA drafted by the developer protects the developer. Thai contract law does not impose mandatory buyer protections equivalent to those found in the UK, EU, or Australia. An independent Thai property lawyer - not the developer's recommended lawyer - must review the SPA before you sign. Legal fees for this service typically range from 15,000 to 50,000 THB depending on complexity, as of 2026.
Accepting a contract with no completion date or no penalty clause
Many developer contracts specify a completion 'target' rather than a contractual deadline. If the contract has no delay penalty clause, the developer can miss the handover date with no financial consequence to them. Before signing, confirm: (a) a fixed or maximum completion date, (b) a daily or monthly penalty for delays beyond that date (typically 0.01-0.1% of the purchase price per day in negotiated contracts), and (c) a defined number of delay days after which you can exit and demand a full refund.
Misunderstanding the refund process
Refund clauses in Thai off-plan contracts often state that the developer will refund within 30-90 days of a cancellation event. In practice, if a developer is in financial difficulty, a refund may take years and require litigation. Thai courts do recognize breach of contract claims, but enforcement against an insolvent developer is slow. This is the honest answer about what happens if a developer defaults mid-build: you become an unsecured creditor. Recovery depends on the developer's remaining assets.
Sending funds without obtaining the FET certificate
A Foreign Exchange Transaction (FET) certificate - sometimes called a Thor Tor 3 form - is issued by a Thai commercial bank when you transfer foreign currency into Thailand and convert it to Thai Baht for a property purchase. Without this document, you cannot register the condo unit in the foreign ownership quota, and you cannot legally repatriate sale proceeds when you sell. Every instalment payment wired from abroad should generate its own FET certificate. Keep all originals.
Overlooking the sinking fund and common area fees at handover
At handover, you will pay a one-time sinking fund (a reserve fund for major future building repairs, typically 400-800 THB per square metre) and one year of common area maintenance fees (typically 40-80 THB per square metre per month) in advance. On a 45 sqm unit, this adds 18,000-90,000 THB to your handover cash requirement. These are often not clearly disclosed early in the sales process.
Assuming assignment is a free exit
If you need to sell your purchase contract before the project completes, you will almost certainly need written developer consent. Most contracts allow the developer to charge an assignment fee of 1-3% of the purchase price. Some contracts prohibit assignment entirely until the building is structurally complete. Read the assignment clause before you sign the SPA, not after you need to exit.
Choosing a developer based on marketing rather than track record
The most reliable indicator of delivery risk is the developer's completed project history. Before committing, verify: how many projects have they completed, did they deliver on time, are there active legal disputes from previous buyers. This information requires direct research - visiting completed buildings, checking Thai court records through a local lawyer, and speaking with juristic persons (the management bodies of completed condo buildings, equivalent to a homeowners association) at past projects.
FAQ
How does a typical off-plan payment schedule work in Thailand?
You pay in stages linked to project milestones. A standard schedule includes a small reservation deposit (1-3%), a larger deposit at contract signing (15-30%), several payments tied to construction progress (foundation, structure, shell, fit-out), and a final payment at handover when the title deed is transferred to your name. The exact percentages vary by developer and project.
Is there escrow protection for foreign buyers paying for an off-plan condo in Thailand?
No. There are no escrow accounts for foreign real estate buyers in Thailand in the traditional sense. Your payments go directly to the developer. Your protection comes from three sources: the contractual terms you negotiate before signing, the developer's track record of completing projects, and the structure of the payment schedule (back-loaded schedules keep more of your money safe for longer).
What is an FET certificate and why does every payment need one?
An FET certificate (Foreign Exchange Transaction certificate, also called a Thor Tor 3 form) is a document issued by a Thai bank confirming that foreign currency was brought into Thailand and converted to Thai Baht for a property purchase. You need one for each instalment payment wired from abroad. Without FET certificates matching the full purchase price, you cannot register the unit under the foreign ownership quota and cannot legally send sale proceeds out of Thailand when you sell.
What happens if the developer defaults before the project is finished?
You become an unsecured creditor of the developer. Thai contract law allows you to sue for breach of contract and claim a refund, but enforcement against an insolvent developer can take several years. There is no government-backed guarantee fund for off-plan buyers in Thailand as of 2026. This is the honest risk assessment: recovery is possible but slow and uncertain. Choosing financially stable developers with completed projects on their record is the best mitigation.
Can I resell my off-plan contract before the building is finished?
Yes, in most cases, but only with the developer's written consent. This is called assignment. Most contracts charge an assignment fee of 1-3% of the purchase price. Some contracts restrict assignment until the building reaches a certain construction stage. If resale flexibility matters to you, negotiate the assignment clause before signing the SPA.
How do I calculate whether the off-plan discount is worth the risk?
Compare the off-plan launch price to the current market price of completed units in the same building or area. As of 2026, indicative data suggests completed units trade 10-20% above off-plan launch prices. Against that discount, subtract: the opportunity cost of tied-up capital over 24-36 months (no rental income), the legal and due diligence costs, any delay penalty shortfall, and a risk premium for the possibility of partial or full loss if the developer fails. If the net discount after these costs is positive and the developer has a strong completion record, the case for off-plan is reasonable.
What contract clauses should I insist on before signing?
Four clauses matter most: (1) a fixed or maximum completion date with a specific penalty for delays (not just a 'target' date); (2) a buyer exit right after a defined delay period with a full refund obligation; (3) clear assignment terms including the fee and any restrictions; and (4) a detailed specification schedule (so the developer cannot legally downgrade finishes after signing). Have a Thai property lawyer negotiate these before you sign.
Is a reservation deposit refundable if I change my mind?
Usually not, or only partially. Reservation deposits in Thailand are typically treated as commitment fees. If you decide not to proceed, most developers will retain all or part of the reservation amount. Confirm the refund terms in writing before paying any reservation deposit, and keep the amount as small as possible until you have reviewed the full SPA.
What is a sinking fund and when do I pay it?
A sinking fund is a one-time reserve contribution paid at handover. It funds major future repairs to shared building infrastructure (lifts, roof, plumbing). It is calculated per square metre and typically ranges from 400 to 800 THB per square metre in mid-market projects as of 2026. It is in addition to ongoing monthly common area fees and is not the same as a maintenance deposit.
Do Thai banks offer mortgages to foreign buyers for off-plan condos?
Rarely, and terms are restrictive. A small number of Thai commercial banks offer loans to foreign nationals with Thai income or long-term residence status, but most foreign buyers of off-plan condos pay in cash from abroad. Developer financing (installment payments directly to the developer with no bank involved) is a separate arrangement offered by some developers, typically at above-market interest rates. Confirm all financing options and rates in writing before relying on them.
Planning a property purchase in Thailand? Send us your requirements - the THAI.ESTATE team will reply with specific options and a safety checklist for your case.