Is It Safe to Buy Property in Thailand? 15 Red Flags Foreign Buyers Must Know

Thailand — especially places like Phuket — is one of Asia’s most attractive real estate markets. Whether you're looking for a holiday villa, a beachside condo, or a long-term investment, the potential is real. But as a foreign buyer, it's only natural to ask:
"Is it safe to buy property in Thailand?"

The short answer is: yes, absolutely — but only if you avoid the common traps.

As a property consultant who works daily with international buyers, I’ve seen how even smart investors can fall into trouble when they’re rushed, misinformed, or misled. This guide outlines 15 key red flags to watch out for — so you can buy with confidence, not regret.

✅ Is It Legal for Foreigners to Buy Property in Thailand?

Yes — foreigners can legally own condos under foreign freehold and can lease land or control it through legal structures to own villas. But Thai law doesn’t allow foreigners to own land outright in their own name.

That’s where things get tricky — and where the importance of doing things the right way becomes clear.

🔴 15 Red Flags to Watch Out for When Buying Property in Thailand

1. Unregistered or Poorly Structured Lease Agreements

If you’re buying a villa under leasehold, ensure the lease is:

• Registered at the Land Office
  
  

• Clearly renewable (ideally 30+30+30 years)
  
  

• Includes clauses for resale and inheritance
  
  

🛑 Red Flag: The lease is verbal or “will be registered later.”

2. Verbal Promises Not Backed by Contracts

If something’s not written down, it’s not enforceable.

🛑 Red Flag: Promises of guaranteed income, furniture, or extensions that aren't in the contract.

3. Developer Has No Track Record

Always check if the developer has completed past projects.

🛑 Red Flag: No proof of experience, no EIA permit, no legal paperwork.

4. Land Without Chanote Title

Chanote is the strongest land title in Thailand. Other types may not be transferable or legal for lease.

🛑 Red Flag: The land has Nor Sor 3 or no title at all.

5. Pressure to Pay Before Legal Review

It’s fine to pay a small reservation fee. But avoid large payments before legal checks.

🛑 Red Flag: "Quick deal" pressure before due diligence is done.

6. Unclear Foreign Freehold Quota in Condos

Foreigners can only own 49% of the units in a condo project as freehold.

🛑 Red Flag: The agent cannot confirm if your unit qualifies for foreign freehold.

7. No Building Permit for Villas or Off-Plan Properties

Every structure must have an approved building permit.

🛑 Red Flag: Developer hasn’t shown a valid building permit.

8. Lease Agreements Not Registered at the Land Office

Unregistered leases (especially under 3 years) are not legally binding.

🛑 Red Flag: The lease is only a private contract with no government record.

9. Ownership Through Illegal Nominee Companies

Some structures use fake Thai shareholders — a legal risk.

🛑 Red Flag: "Don’t worry, Thai nominees are just paperwork."

10. Overpromised Rental Guarantees

Some “guaranteed” rental returns are unsustainable or fake.

🛑 Red Flag: No explanation or breakdown of how the return is paid.

11. Property Built on Agricultural (Sor Por Kor) or Government Land

These lands can’t legally be sold to or controlled by foreigners.

🛑 Red Flag: Land is unusually cheap or described as “informal ownership.”

12. Developer Requests Full Payment Before Completion

For off-plan properties, payments should be staged — never 100% upfront.

🛑 Red Flag: Developer demands all money before construction begins.

13. No Escrow or Bank Guarantee

Reputable projects use escrow accounts or bonds to protect your payments.

🛑 Red Flag: All payments go directly to the developer with no third-party safeguard.

14. Fake or Misleading Marketing Materials

Some developers or agents use outdated renders or stock images.

🛑 Red Flag: Real property looks nothing like the brochure or listing.

15. No Resale Support or Exit Strategy

If you plan to sell later, the property must appeal to future buyers too.

🛑 Red Flag: No clear exit plan, no demand history, or vague promises.

✅ How to Protect Yourself When Buying Property in Thailand

To stay safe and avoid scams:

1. Hire an independent property lawyer — never skip due diligence.
   
   

2. Work with a licensed, transparent agent who understands foreign ownership.
   
   

3. Get everything in writing — from furniture lists to payment terms.
   
   

4. Understand the ownership structure (foreign freehold, leasehold, company setup).
   
   

5. Ask for real references, photos, and developer background.
   
   

Final Thoughts: Safe If Done Right

Thailand’s real estate market is well-regulated and safe for foreigners — but like anywhere, you need to be careful. The biggest mistakes happen when buyers:

• Don’t ask the right questions
  
  

• Trust verbal promises
  
  

• Skip legal checks
  
  

• Try to cut corners to “save time”
  
  

You don’t need to be an expert — that’s what I’m here for. I’ll guide you through the process, protect your interests, and help you make smart, secure decisions.

Let’s make your dream of owning property in Thailand a safe and successful reality.
WhatsApp: https://wa.me/66623422169
Email: amir.a@fazwaz.com