Stages of Buying Property in Phuket. In Person and Remotely

Reserving a property in Thailand: what you need to know

Buying a property in Thailand begins with the stage of reserving the property. This process records the agreements between the buyer and the seller and allows you to remove the selected property from sale.

What is a Reservation Agreement

This is a preliminary agreement specifying the purchase terms: the cost of the property, the reservation amount, the terms of signing the main contract and the procedure for returning the reservation.

After signing the contract and paying for the reservation, the property is reserved for the buyer.

The reservation amount

usually ranges from 1% to 5% of the cost of the property, or is set at a fixed rate (for example, 100,000–200,000 baht for apartments). The reservation is often calculated as a percentage of the total cost for villas.

How is the reservation paid for

Reservation payment is made through:

• bank transfer to the agency or developer account,
• cash with a receipt.

Suppose you plan to register the property to a foreigner (Freehold). In that case, when paying for the reservation by international transfer, receiving an official bank document for subsequent ownership registration is advisable.

Reservation refund

depends on the terms of the agreement:

• If the buyer refuses without a valid reason, the reservation is not refundable.
• If the transaction falls through due to the seller’s fault or legal problems are identified, the reservation is refundable.
• All refund conditions must be spelt out in the reservation agreement.

After booking

We recommend conducting a legal check of the property (Due Diligence). If the check is successful, the main purchase and sale agreement is signed, and payment for the next stage is made.

Purchase of real estate: in person or remotely

Personal registration

The buyer personally selects the property, signs the documents and is present during the ownership registration.

Remote purchase

If personal presence is impossible, the transaction can be completed through a representative by power of attorney. An authorised person carries out the entire procedure, from signing contracts to registration with the Land Department.

Remote buying is especially popular among foreign buyers.

Practical advice

• Do not pay for a reservation without signing a formal contract.
• Check the terms of the Reservation Fee refund.
• For large transactions, use only bank transfers.
• When buying remotely, choose a lawyer or representative carefully.

Want to learn more about the whole process of buying property in Thailand? Check out our detailed guide.