Reservation Agreement in Thailand Explained

Reservation Agreement in Thailand: What You’re Signing and Why It Matter

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.

Reservation Agreement vs. Sale and Purchase Agreement: Key Differences

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

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

Refundability Question

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

14-Day Due Diligence Window

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

• 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

What Happens Next: Reservation to SPA

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?

1. Select unit via online catalog or video tour
2. Receive reservation agreement by email
3. Review with your lawyer remotely
4. Transfer reservation deposit via bank transfer or card
5. 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.

Reservation vs SPA Payment Timeline

Stage	Typical timing	Cash out	Credited toward price?
Reservation	Day 0-1	50,000-200,000 THB	Yes, deducted at SPA
SPA signing	Day 14-45	25-35% minus reservation	Yes
Construction tranche 1	Month 2-6	10-15%	Yes
Construction tranche 2	Month 6-12	10-15%	Yes
Handover balance	Completion	20-30%	Final tranche

Off-plan buyers should cross-check this schedule against off-plan payment schedules in Thailand and the developer’s registered escrow account details.

Pros and Cons of Paying a Reservation Deposit

Pros

Advantages

• It takes the unit off the market while your lawyer reviews the SPA and the title
• It fixes the price against a release that may reprice while you decide
• It identifies the specific unit by number, floor and area, which a verbal hold does not
• It is the cheapest point at which to walk away, if the terms make that possible
• It gives you a document to negotiate from rather than a conversation to remember

Disadvantages

• Deposit is usually non-refundable after the hold period, emotional purchases become expensive
• Short 3-4 day holds pressure buyers to skip lawyer review
• Reservation document carries less detail than SPA, disputes arise if SPA terms change
• Paying before foreign quota verification can trap you in a unit you cannot legally own

Buyer Scenarios: When to Reserve vs Wait

Scenario, Repeat Phuket investor upgrading: Reservation is optional if you are buying a completed resale unit. For a new Laguna phase with waiting list, a 200,000 THB reservation with price lock is often rational, your lawyer review focuses on assignment rights and handover date, not basic title risk.

Negotiating Reservation Terms

• 14-day hold minimum (not 3-5 days) when buying remotely
• Price lock through SPA signing, no “subject to board approval” language
• Full refund if foreign quota is unavailable at SPA stage
• Full refund if developer fails to deliver SPA within agreed days
• Unit number and floor plan attached as schedule to reservation
• Escrow account details matching company registration (never a personal account)

If the sales team refuses all six, compare alternative projects. Competitive Phuket developers routinely accept quota and SPA timeline clauses because they know informed buyers walk away.

What MORE Group Reviews Before You Pay

1. Exact unit ID matches marketing materials and price list
2. Foreign ownership quota status for that building (condo projects only)
3. Developer company name matches Land Department and DBD records
4. Refund triggers are explicit: not buried in Thai-only annex pages
5. Reservation amount will credit toward SPA without double-counting fees
6. Timeline to SPA aligns with your visa, travel, and bank transfer schedule

This review is not a substitute for your own lawyer, but it catches the 80% of issues that cause buyers to forfeit deposits unnecessarily.

What the reservation fee is actually buying

A reservation agreement does one job: it takes the unit off the market while you complete due diligence. Everything else about it is negotiable, and the terms decide whether that job is worth the money.

Term	Buyer-friendly version	The version usually offered
Refund condition	Refundable if due diligence uncovers a material issue: quota unavailable, encumbrance on title, undisclosed restriction	Non-refundable in all circumstances
Duration	Long enough for a real title search and SPA review, typically 21-30 days	7-14 days, which is tight for a proper search
What is reserved	The specific unit, by number, at a stated price	”A unit of this type”, leaving substitution possible
Price lock	The agreed price held for the reservation period	Silent, so the price can move
Credit	Fee credited in full against the purchase price	Usually fine, but confirm it in writing
SPA attached	Draft SPA annexed so you know what you are committing to	SPA “to follow”, so the terms arrive after you have paid

That last row is the one to insist on. A reservation without a draft SPA attached asks you to pay for the right to see a contract you have not read. Ask for it before signing, and if the answer is that it is not ready, that is information about the developer’s stage of preparation.

The refund condition, which is the whole point

The reservation fee exists to buy you time to check things. If the fee is non-refundable regardless of what you find, the entire due-diligence risk has been transferred to you, and the agreement is doing the opposite of its stated job.

The version to ask for is narrow and reasonable: the fee returns if title verification at the Land Department reveals an encumbrance, if the foreign quota turns out to be unavailable for that unit, or if the SPA contains a term materially different from what was represented. A developer confident in their own paperwork has little reason to refuse that, because none of those conditions should arise.

A blanket refusal is worth reading as a signal. It does not prove anything is wrong, but it does mean the developer would rather keep your fee than stand behind their documentation, and that is worth knowing at the point where walking away costs you nothing.

Insider tip: pay the reservation fee to the project’s account rather than to an individual or an agency, get a receipt naming the unit and the price, and keep the transfer record. If a dispute over the fee ever arises, the paper trail is what settles it, and it takes two minutes to create at the time and cannot be created afterwards.

Common Reservation Mistakes Foreign Buyers Make

Skipping bilingual review. Reservation agreements are often bilingual Thai/English. The Thai version controls in disputes. Your lawyer must review both, not just the English summary page.

Wire to wrong account. Developer reservation accounts should match the company name on the EIA and land license. A mismatch between account holder and developer entity is a classic fraud pattern, verify by phone using a number from the developer website, not the agent WhatsApp.

Assuming cooling-off rights exist. Unlike some EU jurisdictions, Thailand has no statutory cooling-off on property reservations. Refund rights must be written into the agreement; if they are absent, assume the deposit is gone after the hold period.

Treating reservation as SPA. Buyers sometimes believe the reservation locks payment terms, penalty clauses, and completion dates. It usually does not. All material terms belong in the SPA, use the 7-14 day window to force clarity, not to rush.

Frequently Asked Questions

Is a reservation agreement legally binding in Thailand? +

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.

Can I sign the reservation agreement before visiting Phuket? +

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.

How much is a typical reservation fee in Phuket? +

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.

What should I do if a developer refuses to refund my reservation? +

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.

Is the reservation deposit counted toward the purchase price? +

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