Journal · Risks, Scams & Protection

Red flags in Thai property contracts

Name: Dena Dee
Item: Central City Property
Rating: 5
Author: admin

Central City Property · 1 August 2025 · 3 min read

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: 💬 WhatsApp: +66 95 992 0345 🔵 Line: https://lin.ee/NNRglgs

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