Editorial
Paying for an Under-Construction Condo in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team14 min read
Buying an off-plan (under-construction) condo in Thailand means paying in stages over months or years before you receive the keys. The core safety question is always the same: how much of your money is at risk at each point in time, and what contractual protections reduce that risk? This guide answers that question with numbers, clause-by-clause analysis, and a clear view of what happens if things go wrong.
Thailand has no statutory escrow protection for foreign real estate buyers. There is no government-mandated account that holds your funds until the building is complete. Your protection comes from three things: the shape of the payment schedule, the quality of the contract clauses, and the track record of the developer you choose.
Quick answer
- Staged payments are the norm. A typical off-plan condo schedule runs: 1-5% reservation fee, 10-20% on contract signing, 20-40% across construction milestones, and the remaining 30-50% on handover.
- Your capital at risk peaks just before handover. Under a front-loaded schedule you may have 50-70% committed before the building tops out. Under a back-loaded schedule (common with larger developers) your risk stays below 30% until near completion.
- Off-plan discounts versus completed resale stock typically range from 10% to 25% in active markets such as Phuket and Chiang Mai, as of 2026, per market estimates. That discount is the compensation for the risk you carry.
- No Thai escrow for foreign buyers. Contract terms and developer due diligence are your real protection tools.
- A chanote title deed (the highest-grade Thai land title) on the completed unit is the target. Confirm the project holds chanote-grade land before signing.
- Assignment clauses in your contract determine whether you can resell the unit before completion. Many contracts restrict or charge fees for assignment.
Options and scenarios
Scenario 1: Standard milestone schedule with a mid-size developer
This is the most common structure for condos priced between THB 3 million and THB 15 million.
Typical breakdown (indicative figures, 2026):
- Reservation deposit: 1-3% of purchase price, paid to secure the unit and price. Often non-refundable if you withdraw after a short cooling-off window (typically 3-7 days).
- Contract signing (within 14-30 days of reservation): 10-15% of purchase price. At this point the formal sale and purchase agreement (SPA) is signed. This is the most important document in your purchase.
- Construction milestones (spread over the build period, typically 18-36 months):
- Foundation complete: 5-10%
- Structure complete (building topped out): 10-15%
- Facade and shell complete: 5-10%
- Handover (on delivery of your unit with title transfer): 30-50%
With these numbers, a buyer of a THB 5 million unit commits roughly THB 1.5 million (30%) before construction reaches the midpoint, and pays the remaining THB 3.5 million only when the building is finished and title is transferred. That back-weighted handover payment is the buyer's main lever.
Scenario 2: Front-loaded schedule (higher risk)
Some smaller or less-established developers request 50-60% before construction milestones are reached, leaving only 20-30% at handover. This structure puts significantly more of your capital at risk during the period when project failure is most likely. Treat a front-loaded schedule as a red flag requiring additional developer due diligence before you commit.
Example calculation on a THB 4 million unit:
| Payment point | % | Amount (THB) | Cumulative at risk (THB) |
|---|---|---|---|
| Reservation | 3% | 120,000 | 120,000 |
| Contract signing | 20% | 800,000 | 920,000 |
| Foundation | 15% | 600,000 | 1,520,000 |
| Structure | 15% | 600,000 | 2,120,000 |
| Facade | 7% | 280,000 | 2,400,000 |
| Handover | 40% | 1,600,000 | 4,000,000 |
At the facade milestone (before handover) you have THB 2.4 million committed. If the project stops at that point, recovery depends entirely on your contract terms.
Scenario 3: Back-loaded schedule with a large, listed developer
Thailand's publicly listed property developers (regulated by the Stock Exchange of Thailand) often offer more buyer-friendly schedules because their brand reputation and regulatory obligations give you additional informal protection.
A back-loaded schedule from a major developer might look like this: 2% reservation, 8% on contract, 10% spread across two or three milestones, and 80% at handover. Your capital at risk mid-build stays below 20% of the purchase price. The trade-off is that the pre-launch discount is smaller, often 5-12% versus completed prices, because the developer shares less risk with the buyer.
Scenario 4: Assignment (reselling the contract before completion)
If your plans change before the building finishes, assignment is the main exit path. Assignment means transferring your contractual rights to a new buyer who takes over future payments and receives the unit.
Key contractual limits you must check before signing:
- Developer consent clause: Most contracts require written developer approval for any assignment. Some developers refuse assignment entirely during early construction phases.
- Assignment fee: Fees of 1-3% of the original purchase price are common. Some contracts set flat fees.
- Profit sharing: A minority of contracts require the developer to share in any gain you make on assignment.
- Lock-up period: Some contracts prohibit assignment for the first 12-24 months.
If assignment is restricted or expensive, your only other exit before completion is cancellation - which triggers penalty clauses.
Comparison table
| Parameter | Back-loaded schedule | Standard milestone schedule | Front-loaded schedule |
|---|---|---|---|
| Capital at risk at mid-build | 15-20% of price | 30-40% of price | 55-65% of price |
| Typical developer profile | Large, listed, established | Mid-size, track record varies | Small, boutique, early-stage |
| Pre-launch discount vs resale | 5-12% (indicative, 2026) | 12-20% (indicative, 2026) | 15-25% (indicative, 2026) |
| Handover payment share | 70-80% | 40-50% | 20-30% |
| Assignment restrictions | Moderate | Moderate to high | High |
| Completion guarantee clause | Usually present | Sometimes present | Rarely present |
| Buyer exit penalty if you cancel | 5-10% of price | 10-20% of price | 20-30% of price |
The off-plan discount versus risk trade-off
As of 2026, per market estimates, a completed resale condo in a popular area such as Rawai (Phuket) or Nimman (Chiang Mai) trades at a premium of roughly 15-20% above comparable off-plan units at the same development, measured at the point of launch. That gap represents what the market charges for certainty.
If you buy off-plan at THB 4.5 million and the completed equivalent would cost THB 5.4 million, your gross saving is THB 900,000. Against that, you carry construction risk for 24-36 months with meaningful capital exposed from contract signing onward. Whether that trade-off makes sense depends on the developer's credibility, the contract terms, your own liquidity, and your ability to absorb a worst-case outcome.
Always run this calculation before signing. Ask the developer for evidence of comparable completed units in the same project or nearby comparable projects.
Contract protections: clause by clause
Completion guarantee
A completion guarantee (or 'completion warranty') clause commits the developer to finishing the building by a defined date. Strong versions define the date precisely, specify what 'completion' means (usually a government occupancy permit, in Thai: 'Oor Por 5' or equivalent), and attach financial consequences to a breach.
Weak versions use phrases like 'estimated completion' or 'subject to circumstances beyond the developer's control' without quantifying what those circumstances are. These give you little practical protection.
If the contract has no completion guarantee clause, treat that as a serious risk factor.
Delay penalty terms
Delay penalties (also called liquidated damages clauses) define compensation you receive if the developer misses the handover date. In practice, Thai contracts for foreign buyers often set these at 0.01-0.02% of the purchase price per day of delay. On a THB 5 million unit, that is THB 500-1,000 per day - meaningful but not a substitute for actual delivery.
Check whether the penalty clause has a maximum cap. A cap of 5-10% of the purchase price means your total delay compensation is limited regardless of how long the delay runs.
Buyer exit and refund conditions
Your right to cancel and the refund you receive depend entirely on which party is in breach.
If the developer is in breach (missed handover date beyond a defined grace period, typically 6-12 months): A well-drafted contract gives you the right to terminate and recover 100% of payments made, sometimes with interest.
If you choose to cancel without cause: Most contracts allow the developer to retain the reservation deposit plus an additional penalty, often 10-20% of the full purchase price. In a front-loaded schedule, this can mean losing the majority of funds already paid.
Never assume you can exit cleanly without penalty. Read the cancellation clause before signing.
What actually happens if the developer defaults
Developer defaults do occur in Thailand. The honest picture:
- If the developer simply stops construction, your primary remedy is a civil lawsuit in Thai court. This is slow (often two to four years to judgment) and expensive relative to recovery amounts for units below THB 10 million.
- There is no government bailout mechanism or statutory buyer protection fund comparable to those in some other markets.
- Partial recovery through collective action (multiple affected buyers coordinating) is possible and has succeeded in past cases, but requires local legal representation.
- If the development company is declared bankrupt, you become an unsecured creditor. Recovery rates for unsecured creditors in Thai insolvency proceedings are typically low.
- The best protection against this outcome is not a contract clause but developer selection: publicly listed companies, long track records, and projects with clear land title (chanote) in the developer's name at the time you sign.
Chanote title and land status
A chanote (Nor Sor 4 Jor) is the highest-grade Thai land title and the one you want under your completed unit. Before signing, confirm through a Thai property lawyer that the project land holds chanote title in the developer's (or project company's) name, with no encumbrances (mortgages, liens) that could transfer to your unit.
A project built on land with a lesser title grade (such as Nor Sor 3 Gor) carries additional title risk that no payment schedule can fix.
Foreign Ownership Certificate (FET funds)
If you are a foreign national buying a freehold condo unit under the Condominium Act, your money must enter Thailand as a foreign currency transfer and be documented with a Foreign Exchange Transaction (FET) form from the receiving Thai bank. This document proves that foreign currency was brought in and is essential for both title transfer and future remittance of sale proceeds out of Thailand.
For each staged payment made from abroad, ensure your Thai bank issues or references an FET form. Keep all FET documentation throughout the construction period.
Risks and mistakes
1. Signing without a Thai property lawyer review. This is the single most common and costly mistake. Thai SPA contracts are in Thai language. The English translation (if provided) has no legal standing. A lawyer reviewing the Thai text often finds clauses that the English translation softens or omits entirely.
2. Treating the reservation as low-stakes. The reservation deposit locks your purchase price and removes the unit from sale. In many contracts it is non-refundable after 3-7 days. Do your due diligence before paying the reservation, not after.
3. Ignoring the developer's land title status. Developers sometimes begin presales before securing full chanote title on the project land. If the land title is not resolved, the project cannot proceed legally. Confirm title before any payment.
4. Accepting vague milestone definitions. A milestone clause that says 'structure complete' without specifying what that means (e.g., 'all floors of the building poured and the roof slab cast, certified by the project engineer') gives the developer room to interpret milestones in ways that trigger your payment early.
5. Not asking about the sinking fund. A sinking fund is a one-time payment made at handover (indicatively THB 400-700 per square metre in 2026) into a reserve for major building repairs. It is separate from the annual common-area maintenance fee. Budget for it.
6. Overlooking foreign ownership quota limits. Under the Condominium Act, foreign nationals may collectively own no more than 49% of the total saleable area in any one condominium project. If the foreign quota is nearly full when you sign, your eventual title transfer could face complications. Confirm the current quota status in writing.
7. Not checking the developer's completion track record. Ask for a list of completed projects by the same developer or developer group. Visit at least one completed project if possible. Look for public records of legal disputes involving the developer.
8. Ignoring the sinking fund and transfer fees at handover. At handover, you pay: transfer fee (typically 2% of the registered price, split by negotiation), specific business tax or stamp duty (depending on the holding period), plus the sinking fund and first month of common area maintenance. Budget an additional 4-6% of the purchase price for these costs.
FAQ
What is a typical payment schedule for an off-plan condo in Thailand?
A standard schedule runs: 1-5% reservation, 10-20% at contract signing, 20-40% across two to four construction milestones, and 30-50% at handover. The exact split varies by developer and project. Back-loaded schedules (large handover payment) are safer for the buyer.
Is my money protected in escrow if the developer stops building?
No. Thailand does not have statutory escrow protection for foreign real estate buyers. Your funds are held and used by the developer as construction progresses. Your protection comes from the contract terms, the developer's credibility, and the payment schedule structure.
Can I resell my off-plan condo contract before the building is finished?
Often yes, through a process called assignment. However, most contracts require developer written consent, charge an assignment fee (typically 1-3% of the purchase price), and some prohibit assignment for the first 12-24 months. Check your specific contract before assuming you can exit this way.
What happens to my payments if the developer becomes insolvent?
You become an unsecured creditor in Thai insolvency proceedings. Recovery is uncertain and slow. This outcome underscores why developer selection and back-loaded payment schedules matter more than any single contract clause.
How do I document my payments as a foreign buyer for title transfer purposes?
Each payment from abroad must arrive in Thailand as a foreign currency transfer. Your receiving Thai bank will issue or reference a Foreign Exchange Transaction (FET) form. Collect and retain all FET documentation, as it is required for the title deed to be registered in your name and for repatriating sale proceeds in the future.
What does 'chanote' mean and why does it matter?
Chanote (formally Nor Sor 4 Jor) is the highest-grade land title in Thailand. It is fully surveyed, GPS-referenced, and legally unambiguous. A condo unit on chanote land is the standard you should expect. Projects on lower-grade titles carry additional legal risk.
How much is the off-plan discount compared to buying a completed unit?
Per market estimates as of 2026, off-plan units in active markets typically trade at 10-25% below comparable completed resale stock at the time of project launch. The discount narrows as the building progresses toward completion.
What fees do I pay at handover on top of the final instalment?
At handover, budget for: transfer fee (typically 2% of the registered price), stamp duty or specific business tax (rate depends on the developer's holding period), sinking fund (indicatively THB 400-700 per square metre), and the first payment of the common-area maintenance fee. Total additional costs are often 4-6% of the purchase price.
What does the foreign ownership quota mean for my purchase?
Under the Condominium Act, foreign nationals may collectively hold no more than 49% of the total saleable area in a single project. If the foreign quota is full or nearly full, your purchase may be blocked or your title transfer delayed. Confirm the current quota status in writing from the developer before signing.
Should I use a lawyer when buying an off-plan condo in Thailand?
Yes. Thai sale and purchase agreements are in Thai language. An independent Thai property lawyer - instructed by you, not by the developer - should review the Thai-language contract before you sign or pay beyond the reservation stage. This is a cost of a few hundred US dollars against a risk of losing tens of thousands.
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.