Before signing any Sale and Purchase Agreement (SPA), lease contract, or construction agreement in Thailand, always review for these red flags. A good property lawyer can help, but knowing what to look for yourself is essential.
1. ❌ No Thai Language Version
⚠️ Contracts must be in Thai to be legally enforceable in Thai courts.
- English-only contracts aren’t recognized in legal disputes.
- You should receive a bilingual contract (Thai and English) with the Thai version marked as the legally binding one.
2. ❌ No Clear Property Description
| What to Watch For | Why It Matters |
|---|---|
| Vague or missing land title deed number | You won’t know what you’re actually buying |
| No mention of unit number or floor (for condos) | Could lead to ownership disputes |
| No land plot size or boundaries | Dangerous for villa or leasehold buyers |
✅ Make sure all title details, land measurements, and boundaries are included.
3. ❌ Unregistered Lease Terms
🚫 If a lease is not registered with the Land Department, it’s not legally enforceable.
- A 30-year lease must be officially recorded on the title deed.
- Renewal clauses are not guaranteed by law unless explicitly stated and agreed again in the future.
- “100-year lease” offers are misleading and often illegal.
4. ❌ Unbalanced Penalty Clauses
| Unfair Term | Why It’s a Red Flag |
|---|---|
| Buyer must pay large penalty for late payment, but seller has no penalties for delay | Indicates a biased agreement |
| No refund terms if project is canceled | Common in off-plan scams |
| Vague “force majeure” clause | Seller might delay or cancel without refund |
✅ Penalties and liabilities should apply fairly to both parties.
5. ❌ Ownership via Thai Nominee
🚩 Buying land or property using a Thai “nominee” is illegal and can lead to confiscation.
- Contracts where your name doesn’t appear as a foreigner but you paid for the property can be invalidated.
- If a Thai partner holds the property “on your behalf,” you’re at risk of losing it.
6. ❌ No Exit or Termination Clause
- You should always have a clear cancellation or termination clause.
- Look for: refund rights, cancellation fees, and timelines.
- Lack of exit options can trap you in bad deals with no recourse.
7. ❌ Missing Transfer of Ownership Details
| Check For | Why It’s Important |
|---|---|
| Who pays Land Department transfer fees | Should be split or agreed in writing |
| Exact transfer date | Needed to confirm when you get legal ownership |
| No mention of due diligence or conditions | You must be protected in case legal issues arise |
8. ❌ No Mention of Maintenance Fees or Shared Costs
Especially for condos or gated communities:
- Contracts should state the annual maintenance fee, how it’s calculated, and what it covers.
- Sinking funds (one-time fees for building upkeep) should be disclosed upfront.
🧾 Sample Table: What a Balanced Contract Should Look Like
| Clause | What It Should Include |
|---|---|
| Buyer & Seller Info | Full legal names, ID/passport numbers |
| Property Details | Title deed no., land/unit size, location |
| Payment Schedule | Deposit amount, stages of payment |
| Transfer of Ownership | Who pays fees, transfer date, legal process |
| Penalties | Reasonable & equal for both parties |
| Termination Clause | Refund conditions, timeframes, legal remedies |
| Governing Language & Law | Thai law and Thai version prevail |
🔑 Final Advice
✅ Always:
- Have a bilingual property lawyer review the contract
- Request a draft contract before paying any deposit
- Read all terms carefully — especially for off-plan, leasehold, or Thai partner deals
🚫 Never:
- Sign contracts you don’t understand
- Accept “handwritten agreements”
- Trust verbal promises over written clauses
Have a contract you’re not sure about — or want to work with someone who makes sure you never receive one like this in the first place?
A poorly written contract is one of the easiest ways to lose money in Thai property. We work with reputable sellers and developers, and we always encourage our buyers to have contracts reviewed by an independent lawyer before signing anything. If you’d like a referral or just want a second opinion on something you’re looking at, we’re happy to help.
📧 Email: contact@centralcityproperty.com 💬 WhatsApp: +66 95 992 0345 🔵 Line: https://lin.ee/NNRglgs
