Thailand Property Reservation Payment: How Much, When, and What It Covers
Off-plan projects in Phuket often collect reservation fees within 24-48 hours of launch when 20-40% of release inventory moves in the first week. Treat the fee as a binding commercial decision, not a refundable “maybe.”
What Does the Reservation Payment Actually Buy You?
- Remove the unit from sale for the specified hold period (7-14 days)
- Lock the price: the agreed price cannot be increased during the hold period
- Prepare the SPA for your review and signing
- Decline other buyers who may express interest in the same unit
In active markets, particularly popular developments that are selling quickly, the reservation payment is the mechanism that secures your spot before another buyer takes it. In Phuket’s growing market, well-positioned units in quality projects can genuinely sell within days of launch.
Reservation Payment Amounts by Property Type
Important: These are market norms, not legal minimums. Some budget developers accept lower deposits; some luxury projects demand higher. Always confirm the exact amount from the developer before initiating any payment.
Decision framework: when to pay the reservation fee
| Step | Question | If “no”, action |
|---|---|---|
| 1 | Is foreign quota confirmed in writing (condo freehold)? | Do not pay, pick another unit or structure |
| 2 | Have you reviewed developer track record? | Pause; see developer reputation checklist |
| 3 | Does reservation agreement list refund triggers? | Negotiate clauses before signing |
| 4 | Is SPA draft available within hold period? | Request extension in writing |
| 5 | Is your lawyer engaged for SPA review? | Book review slot before Day 3 of hold |
Scenario A: Launch week, high demand: You want Unit 802 in a Bang Tao project with 6 competing inquiries. Pay reservation quickly only after quota letter and price sheet are emailed. Accept non-refundable terms if refund triggers for quota failure and title defects are explicit.
Scenario B: Secondary resale from individual owner: Reservation fees are less standard; often a goodwill deposit of 50,000-100,000 THB into escrow with lawyer. Do not use developer-style non-refundable terms without legal review.
Scenario C, Pre-launch waitlist: Some developers collect 20,000-50,000 THB “expression of interest” that may or may not bind price. Clarify in writing whether the amount is refundable if launch pricing exceeds early indications by more than 5-8%.
Scenario D, Villa off-plan, $15,000 reservation: Higher forfeiture risk. Split diligence: developer licence, land title, construction permit, and milestone schedule before payment. Villa reservations above 500,000 THB should tie to SPA timeline penalties on the developer side, not only buyer forfeiture.
Red flags before you wire the reservation fee
What to check: Developer company registration matches invoice, unit number on reservation matches price list, hold period end date is calendar-clear (not “about two weeks”), and extension process is written not verbal.
Insider tip: Paying by credit card with 2-3% surcharge can be cheaper than losing a 170,000 THB deposit because the developer never sent an SPA. Chargeback rights vary by card issuer, still not a substitute for legal review, but a useful backstop on the first payment only.
Pros and cons of paying reservation early
Cons: Forfeiture if personal financing falls through, non-refundable default terms, pressure to skip due diligence, FX movement between reservation and SPA deposit (see currency risk when buying).
Hold Period: 7-14 Days
- The unit is removed from active sales listings
- No other buyer can be offered or reserve the unit
- You have time to arrange legal review of the SPA
- You prepare your international bank transfer for the SPA deposit
Can you extend the hold period? Sometimes. If you need more time, for example, to receive legal advice from your home country, ask the developer. Extensions of 7-14 days are often granted, sometimes with a partial additional fee. Extensions are more likely to be granted during quiet sales periods and for high-value purchases where the developer doesn’t want to lose a serious buyer.
What if the unit sells to someone else during your hold? If you’ve paid a reservation fee and have a signed reservation agreement, the developer cannot sell the unit to another buyer during the hold period. If they do, they must refund your deposit (and potentially compensate for breach). Ensure you have a signed reservation agreement before any money transfers.
Refundability: The Critical Question
Non-Refundable (Default)
Most reservation agreements in Thailand are non-refundable once signed. If you decide not to proceed after paying, you lose the deposit. This is industry standard and not a red flag on its own, it reflects the developer’s cost of taking the unit off the market.
Limited Cooling-Off Period
Some developers offer a 24-72 hour cooling-off period during which you can withdraw and receive a full refund. This is not required by Thai law and is entirely at the developer’s discretion. Premium and internationally-oriented developers are more likely to offer this.
When to ask: Before paying any reservation deposit, ask explicitly: “Is there a cooling-off period? If I change my mind in the next 48 hours, do I get my deposit back?” Get the answer in writing.
Developer Default / Failed Due Diligence
Most reservation agreements (and certainly any well-drafted one) will entitle you to a full refund if:
- The developer cannot present an SPA within the agreed period
- Due diligence reveals the unit cannot legally be sold as foreign freehold (e.g., quota full)
- The developer makes material changes to key terms (price, unit, specifications)
- A clear legal defect with the title is discovered
If the refund condition is not clearly stated in the reservation agreement, add it as a written condition before signing.
What Triggers Forfeiture of the Reservation Deposit?
- You don’t sign the SPA within the hold period and don’t request an extension
- You refuse to sign the SPA without valid legal grounds
- You fail to make the SPA deposit payment within the agreed timeline after signing
- You request changes to the purchase that the developer cannot accommodate and use this as pretext to withdraw
Some disputes arise when buyers feel entitled to a refund due to changed personal circumstances (couldn’t get a mortgage, divorce, job loss). Thai reservation agreements generally do not accommodate these reasons for withdrawal, personal circumstances are the buyer’s risk, not the developer’s.
Payment Methods for the Reservation Fee
| Method | Common? | Notes |
|---|---|---|
| International bank transfer | Yes | Preferred for FET documentation |
| Credit card | Yes | Often 2-3% processing fee added |
| Debit card | Sometimes | Depends on developer’s processor |
| Crypto (USDT, BTC) | Occasionally | Some developers accept informally |
| Cash (on-site) | Rarely | Possible at sales gallery for local buyers |
Credit card consideration: Paying the reservation fee by credit card gives you potential chargeback rights if the developer fails to perform, an additional layer of protection. However, developers often add a 2-3% credit card surcharge. Check your card’s foreign transaction policies.
For FET certificate purposes: The reservation deposit is generally too small to require a FET certificate on its own, but starting the practice of overseas bank transfer from your first payment establishes good documentation habits for larger subsequent payments. SPA deposits of 25-35% on a 6M THB condo (1.5M-2.1M THB) always require clean FET documentation for foreign freehold registration.
Looking for the right property in Phuket?
Found a property in Phuket you love? MORE Group handles reservations remotely and reviews all documentation before you pay a cent.
Remote Reservation: How It Works
Step 1: You select a unit (via virtual tour, floor plans, or agent recommendation)
Step 2: Developer confirms availability and price in writing
Step 3: Developer sends reservation agreement by email
Step 4: You (and ideally your lawyer) review the agreement
Step 5: You confirm in writing that you accept the terms
Step 6: Developer countersigns and sends back
Step 7: You transfer the reservation fee to the developer’s account
Step 8: Developer sends countersigned agreement with bank confirmation of receipt
Total timeline: Can be completed in 24-48 hours. No need to be in Thailand.
One timing point that affects remote buyers specifically: if you intend to complete under a power of attorney, that document generally needs notarisation and then either an apostille or consular legalisation depending on your country. That process runs on your home country’s timetable and cannot be accelerated from Thailand, so start it as soon as the reservation is signed rather than when the transfer date is set. Buyers who leave it until the SPA is agreed routinely lose two to three weeks they did not budget for.
Typical reservation figures, and what they should buy
Reservation fees in Thailand cluster in a fairly narrow band, and knowing the range tells you whether what you are being asked for is normal.
| Purchase level | Typical reservation fee | Usual period |
|---|---|---|
| Condominium under 5,000,000 THB | 50,000-100,000 THB | 14-30 days |
| Condominium 5,000,000-15,000,000 THB | 100,000-200,000 THB | 21-30 days |
| Condominium above 15,000,000 THB | 200,000-500,000 THB | 30 days |
| Villa | 100,000-300,000 THB and upward with price | 30 days or more |
Two things should hold regardless of the figure. The fee should be credited in full against the purchase price, and the period should be long enough for a real title search at the Land Department, a written confirmation of the foreign quota, and a lawyer’s review of the SPA. Seven days is not.
A fee materially above these bands, or a period materially below them, is worth asking about directly. Neither is necessarily wrong, but both are choices the seller has made and you are entitled to the reasoning.
Note that the reservation period is calendar time, not working days, and Thai public holidays are numerous enough to matter on a 14-day clock. Confirm which basis applies before agreeing a short window, and if the period spans Songkran in April or the New Year period, ask for it to be extended accordingly. Land Department appointments and lawyer availability both tighten around those dates.
What the payment itself should look like
Pay to the project’s account, not to an individual, an agent, or a company whose name differs from the party in the agreement. Get a receipt that names the specific unit, the agreed price, and what the fee is credited against.
Keep the transfer record. If a dispute over the fee arises later, that paper trail is what settles it, and it takes two minutes to create at the time and cannot be created afterwards.
If you are paying from abroad, note that this early payment is generally too small to matter for the FET requirement, which applies to the purchase funds used for freehold registration. But it is worth telling your Thai bank at the outset what the eventual transfers are for, so the references are captured correctly when the larger sums arrive.
For reference, the sums that follow the reservation on a typical Phuket condominium purchase run roughly: a deposit at SPA of 10-35% on off-plan or the balance at transfer on completed stock; transfer fees at 2% of registered value; specific business tax at 3.3% where the seller has held under 5 years, or stamp duty at 0.5% where it has not; and legal fees in the low five figures in baht. Budget 3-6% of the price in total for transfer costs, and expect them to be split by negotiation rather than by rule.
Common Questions About Reservation Timing
Q: Can I reserve multiple units and decide later? A: No, you would need to pay separate reservation fees for each unit, and forfeiting one is expensive. If you’re genuinely torn between two units, ask the agent or developer if one can be held without a full fee while you decide. This is occasionally possible in slower sales periods.
Q: What if the project isn’t launched yet (pre-launch)? A: Some developers collect pre-launch registrations of interest before the official sales launch. These early expressions of interest may or may not involve a deposit. Clarify whether the pre-launch reservation is binding and refundable, these terms vary significantly by developer.
Frequently Asked Questions
The terms are used interchangeably in practice, but technically the reservation fee (or booking fee) is a preliminary payment to hold a unit, while the deposit usually refers to the larger SPA payment (25-35% of the purchase price). The reservation fee is credited toward the SPA deposit. So if your total purchase is 5,000,000 THB and you pay 100,000 THB at reservation, you owe 4,900,000 THB more, starting with the SPA deposit at signing.
Sometimes, especially for high-value properties or during slower sales periods. Developers generally have more flexibility on reservation fee amounts than on purchase prices or SPA deposit percentages. If cash flow is a concern, ask if a lower reservation fee is possible. However, don't expect significant flexibility in high-demand projects or during launch periods when multiple buyers are competing for units.
Contact the developer immediately if you need more time for legal review. Requesting a 7-day extension before the hold period expires is very different from missing the deadline without communication. Most developers will accommodate a reasonable extension request, particularly for international buyers who may face time zone and logistics challenges. Document extension agreements in writing.
Yes, many developers accept international credit card payments for reservation fees. The developer must have an international payment terminal or online payment link. Expect a 2-3% card processing surcharge. Using a credit card from a reputable financial institution gives you potential chargeback rights, which can be a useful backstop for reservation deposits if the developer fails to perform.
No. Reservation fees can be paid remotely by international bank transfer, credit card, or other digital payment method. The reservation agreement can be reviewed and signed digitally or by email scan. MORE Group facilitates remote reservations for buyers from anywhere in the world, no Phuket visit required at this stage.
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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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