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
