Reservation Agreement in Thailand: What You're Signing and Why It Matters
Thailand property reservation agreement explained: what it covers, typical deposit 50,000–200,000 THB, refund conditions, and how it leads to SPA. Complete guide for foreign buyers.
Reservation Agreement in Thailand: What You’re Signing and Why It Matters
A reservation agreement in Thailand is a preliminary document that secures a specific property unit at an agreed price for 7–14 days, accompanied by a deposit of 50,000–200,000 THB (approximately $1,500–$6,000). It is not the main contract — that is the Sale and Purchase Agreement (SPA), which follows within 30–60 days. The reservation deposit is typically non-refundable after the hold period, so understanding what you’re signing before you pay is essential.
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Reservation Agreement vs. Sale and Purchase Agreement: Key Differences
Confusion between these two documents is extremely common among first-time buyers in Thailand. Here’s the essential distinction:
| Feature | Reservation Agreement | Sale and Purchase Agreement (SPA) |
|---|---|---|
| Purpose | Secures unit, locks price | Main legally binding contract |
| Timing | Day 1 | 30–60 days after reservation |
| Payment | 50,000–200,000 THB | 25–35% of purchase price |
| Legal weight | Preliminary | Full contractual obligations |
| Refundability | Usually non-refundable after hold period | Governed by contract terms |
| Includes full terms? | No — limited details | Yes — payment schedule, penalties, specs |
The reservation agreement is essentially a booking confirmation. It’s a short document — typically 1–4 pages — that states: “You agree to buy Unit X at Price Y, and the developer agrees to take it off the market while you finalize your decision.”
What a Reservation Agreement Covers
A standard Thailand reservation agreement will include:
1. Unit identification
- Building name, floor number, unit number
- Orientation/view (e.g., “pool view, 5th floor, Building A”)
- Size in square meters (confirm gross vs. net usable area)
2. Purchase price
- Total agreed price (in THB and/or USD)
- Included extras: furniture package, parking space, storage unit
- Whether price is fixed regardless of final SPA date (it should be)
3. Reservation deposit amount
- Exact amount in THB
- Payment method accepted (bank transfer, credit card, crypto)
- Where to transfer (developer’s escrow or operating account — escrow is safer)
4. Hold period
- How many days the unit is held for you (typically 7–14 days)
- What happens if you don’t sign the SPA within this period
5. Refund conditions
- Conditions under which deposit is refundable (if any)
- What constitutes forfeiture of the deposit
- Developer’s obligations if they cannot proceed (rare)
6. Reference to SPA
- Statement that the reservation leads to a full SPA
- Timeline for SPA presentation and signing
Typical Reservation Deposit Amounts by Property Type
| Property Type | Typical Reservation Deposit |
|---|---|
| Budget condo (under 5M THB) | 50,000–100,000 THB |
| Mid-range condo (5–12M THB) | 100,000–200,000 THB |
| Luxury condo (12–25M THB) | 200,000–500,000 THB |
| Premium villa (25M+ THB) | 500,000–1,000,000 THB |
| Developer-specific pricing | May differ — always confirm |
Some international developers active in Phuket quote reservation fees in USD ($2,500–$10,000) for the convenience of foreign buyers. Either currency is acceptable — just ensure the exchange rate used is transparent and documented.
The Refundability Question
This is where buyers most often get caught off guard. Reservation agreements in Thailand are typically non-refundable — and this is considered standard industry practice, not a red flag.
Here is how refundability typically works:
Within the hold period (7–14 days): Some developers offer a limited cooling-off window — commonly 48–72 hours — during which you can withdraw and receive a full refund. This is not required by Thai law and many developers don’t offer it, particularly for popular units with waiting lists.
After the hold period: If you decide not to proceed with the SPA after the hold period expires, you forfeit the reservation deposit. The developer has held the unit off the market during this time, and the deposit compensates them for that opportunity cost.
If the developer cannot proceed: If the developer fails to present the SPA within the agreed timeframe, or if due diligence reveals serious problems with the title or permits, most reservation agreements (and certainly any well-drafted ones) entitle you to a full refund. Confirm this clause exists before paying.
Legitimate reasons for full refund:
- Due diligence reveals the property cannot legally be sold to foreigners
- Developer withdraws the unit or changes key terms
- Developer fails to provide SPA within agreed period
The 14-Day Due Diligence Window
Fourteen days is your standard window between reservation payment and SPA signing — use it fully. This is the time to:
Get a lawyer A Thai property lawyer should review the SPA before you sign it. Full SPA review typically costs 20,000–50,000 THB ($600–$1,500). This is not optional — the SPA is a complex document with long-term legal implications.
Verify the developer’s credentials Check:
- Developer registration with Department of Business Development
- Planning permits and environmental approvals for the project
- Track record — have they completed other projects on time?
- Foreign buyer quota availability (must be below 49% for freehold)
Confirm the title deed status The land should be covered by a Chanote (NS4j) title — the most secure form of Thai title. Anything less requires additional scrutiny. See our Chanote title deed guide for the full breakdown.
Arrange your transfer If you’re proceeding, you need to arrange your international bank transfer so the SPA payment arrives on time. See bank transfers for Thai property for the correct process including FET certificate requirements.
Red Flags in Reservation Agreements
Not every reservation agreement is legitimate or fair. Watch for:
- No unit number specified: If you’re just reserving “a 1BR in Building A” without a specific unit number, you have limited protection on which unit you actually get
- No price guarantee: The price should be locked from reservation through SPA. If the agreement says “subject to confirmation,” get clarification before paying
- Very short hold period: A 3–4 day hold period is aggressive and may indicate pressure tactics. Reputable developers offer 7–14 days minimum
- Deposit to personal account: Legitimate developers receive reservation deposits into company accounts, ideally escrow. Personal accounts are a serious red flag
- No mention of SPA timeline: The reservation agreement should reference when the SPA will be presented and signed
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What Happens Next: Reservation to SPA
After signing the reservation agreement and paying the deposit, the process moves to SPA preparation and signing:
Days 1–14 (Hold Period):
- You conduct due diligence
- Developer prepares the SPA
- Your lawyer reviews the SPA draft
Days 14–30:
- SPA revisions negotiated (if needed)
- Final SPA agreed and translated (bilingual Thai/English)
- You arrange international transfer for SPA payment
Days 30–60:
- SPA signing (in person or via Power of Attorney)
- SPA deposit paid (25–35% of total purchase price)
- Both parties hold executed SPA copies
- Construction begins or continues (for off-plan)
See Off-Plan Payment Milestones for what happens throughout construction.
Can You Reserve Remotely?
Yes — for most Phuket developments, reservation can be completed entirely remotely:
- Select unit via online catalog or video tour
- Receive reservation agreement by email
- Review with your lawyer remotely
- Transfer reservation deposit via bank transfer or card
- Receive countersigned reservation agreement from developer
MORE Group facilitates remote reservations for international buyers daily. All documentation can be handled digitally, with the main contract either signed remotely with proper notarization or at a later in-person visit. See buying property remotely in Thailand for the full remote purchase process.
FAQ
Frequently Asked Questions
A reservation agreement creates legal obligations but is generally considered a preliminary commitment rather than a full contract. The developer is obligated to hold the unit for the agreed period and present the SPA. The buyer is obligated to forfeit the deposit if they choose not to proceed after the hold period. Neither party is fully bound to complete the transaction until the SPA is signed.
Yes. Reservation agreements are routinely signed remotely for Thai property purchases. You receive the document by email, review it with your lawyer (also by video call if needed), transfer the deposit from your overseas bank account, and receive the countersigned copy digitally. The main in-person requirements come later — primarily at SPA signing and Land Office title transfer at handover.
Most Phuket condos require a reservation fee of 50,000–200,000 THB (approximately $1,500–$6,000). Budget projects may accept 50,000 THB. Luxury condos and villas often require 200,000–500,000 THB or more. Some internationally-marketed projects quote fees in USD ($2,500–$5,000). The amount is always credited toward your total purchase price at SPA signing.
If you believe a refund is warranted — for example, due to developer misrepresentation or failure to present the SPA — first send a formal written demand via email and registered mail. If the developer refuses, consult a Thai property lawyer about your options, which may include mediation, Consumer Protection Board complaint, or civil litigation. Prevention is better: confirm refund conditions in writing before paying any deposit.
Yes — in virtually all standard Phuket development sales, the reservation fee is a credit toward the total purchase price. When you pay the SPA deposit (25–35% of total), the reservation fee is deducted from that amount. So if your condo is 5,000,000 THB, the SPA deposit might be 1,500,000 THB, and you only pay 1,400,000 THB at SPA signing if you already paid 100,000 THB at reservation.
Related Guides
- Sale and Purchase Agreement in Thailand: Complete Guide
- Off-Plan Payment Milestones in Thailand
- Due Diligence Process in Thailand: Step-by-Step
- Power of Attorney for Thai Property
- Chanote Title Deed Explained
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The MORE Group team has helped 500+ European and American buyers purchase property in Thailand. We provide legal support, 0% commission, and on-the-ground expertise since 2018.
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