Whether you’re a buyer backing out of a sale or someone who has made a reservation deposit for a condo or villa, it’s essential to understand your legal rights, financial risks, and the proper way to cancel — without causing unnecessary penalties or legal trouble.
🔑 Common Scenarios for Cancellation
Scenario
Cancellation Possible?
Key Considerations
Buyer cancels after signing booking agreement
✅ Yes, with forfeiture of deposit
Most agreements are non-refundable unless otherwise stated
Buyer cancels after signing Sales & Purchase Agreement (SPA)
✅ Sometimes
May lose more than the deposit, depending on contract terms
Buyer cancels off-plan unit from developer
✅ With conditions
Subject to penalties; may depend on developer policy
Developer fails to meet deadlines
✅ Yes
Buyer can often cancel with refund if timelines are breached
Buyer backs out before signing anything
✅ Yes
No legal issue; just notify in writing
📝 Booking Agreement vs. Sales & Purchase Agreement
Agreement Type
What It Covers
Can You Cancel?
Booking Agreement
Holds the unit temporarily for the buyer
✅ Yes – but deposit is usually non-refundable
Sales & Purchase Agreement (SPA)
Full legal contract for property sale
✅ Sometimes – may include cancellation clauses or penalties
⚠️ Tip: Always check for a “cooling-off period” clause — although rare in Thailand, some developers may offer it (e.g., 7–14 days to cancel without major loss).
🔄 How to Cancel Properly (Step-by-Step)
Review Your Contract
Look for terms under “Termination,” “Refund,” or “Default by Purchaser.”
Check what penalties apply.
Contact the Seller or Developer in Writing
Send a formal cancellation letter/email.
Keep copies and request acknowledgment.
Negotiate a Refund (if applicable)
Developers may return part of the deposit if no significant work has been done.
Some may allow transferring your booking to another buyer.
Consult a Lawyer
Especially important if a large sum or signed SPA is involved.
Legal help is crucial for refund disputes.
Close the File with a Receipt or Confirmation
Always get written confirmation of the cancellation and any refund.
💸 What Happens to the Deposit?
Situation
Deposit Outcome
Cancellation before any signing
💯 Fully refundable
Cancellation after booking signed
❌ Usually forfeited
Cancellation after SPA signed
⚠️ Partial refund (varies by clause)
Developer breach of contract
✅ Full refund likely (with legal support)
📌 Key Takeaways
Cancellation is legal but may cost you a deposit or more.
Always read agreements before paying or signing.
In off-plan projects, check the developer’s reputation and cancellation policy.
Keep all communications in writing.
Legal support is essential if you’re past the booking stage.
