How Contracts Work When Buying Property in Thailand: Reservation, SPA and Transfer?
Thai property purchases typically move through three contract layers: a reservation agreement (often partially binding commercially, with deposits commonly around $2,500-$5,000 USD), a Sale and Purchase Agreement (SPA) as the binding commercial backbone, and Land Department transfer documents that actually change ownership. If you only sign a reservation and wire money without SPA discipline, you may not have what you think you bought, you have a receipt and hope.
Contracts are not “paperwork.” They are the written version of who bears risk when reality hits, delays, defects, currency moves, and human disagreement.
Stage 1: Reservation agreement: what it locks (and what it does not)
| Element | Typical intent |
|---|---|
| Deposit | $2,500-$5,000 USD (varies) |
| Exclusivity | Unit held briefly |
| Next step | SPA drafting |
Stage 2: SPA: the contract that governs money and penalties
| SPA clause | Why it matters |
|---|---|
| Completion date | Tie to measurable milestones |
| Penalties | Symmetry: buyer vs seller |
| Assignment | Resale flexibility |
| Dispute resolution | Arbitration vs courts |
Red flags: transfer traps
| Transfer issue | Why foreigners get hurt |
|---|---|
| Undisclosed mortgage | Blocks release |
| Quota failure | Cannot register freehold |
| Name mismatch | Officer rejection |
Make the SPA match your risk
We help you compare developer contracts against Phuket market norms, then your lawyer finalizes.
Off-plan vs resale: how contracts differ
Resale add-ons you may need
Resale purchases may require additional schedules for furniture inclusion, meter readings, and juristic office clearance letters, your lawyer lists what the Land Department and building require beyond the SPA headline price.
| Resale topic | Why it shows up |
|---|---|
| Furniture package | Avoid “included” fights |
| Service fees | Unpaid CAM can block handover |
| Keys / access cards | Practical possession |
If your SPA is shorter than your group chat with the seller, you are under-documented, overexposed, and dangerously informal for the price you pay.
Payment schedules: why “installments” are legally sensitive
| Payment event | What to tie it to |
|---|---|
| Deposit | Reservation / contract execution |
| Construction | Third-party inspections where possible |
| Transfer | Land Department readiness |
Taxes and fees: who pays what (and why it must be explicit)
| Fee / tax theme | Typical negotiation point |
|---|---|
| Transfer fee | Split ratios |
| Stamp duty / specific business tax | Seller vs buyer facts |
| Withholding tax | Often seller-side but confirm |
How MORE Group helps buyers negotiate from strength?
Related Guides:
- Thai Property Reservation Process, step-by-step after you agree
- Land Office Process Explained, transfer day mechanics
- Why Legal Review Matters, lawyer scope
Frequently Asked Questions
It depends on the reservation terms. Many reservations are partially or fully non-refundable if the buyer cancels without a contractual basis. Read the clause carefully.
A Sale and Purchase Agreement is typically the main binding contract that sets price, payment schedule, and transfer obligations between buyer and seller.
A lawyer review is strongly recommended because SPAs contain penalty clauses and risk allocation that materially affect your investment.
Land Department registration and transfer documents are typically required to change ownership or register long leasehold rights.
Your SPA should define delay remedies. If it does not, you may have weak leverage, negotiate before signing.
Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
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