What to Check Before Signing a Reservation Agreement in Thailand

Essential due diligence for foreign property buyers

When you find the right condo or villa in Thailand — especially in Phuket — the next step is usually to sign a Reservation Agreement and pay a deposit to secure the unit. But before putting pen to paper, you need to be sure you understand exactly what you're committing to.

As a property consultant who’s helped dozens of foreign buyers, I’ve seen how a rushed reservation can lead to avoidable stress or financial loss. This guide walks you through the key things to check before signing a Reservation Agreement in Thailand — whether you’re buying off-plan or a completed resale unit.

✅ What Is a Reservation Agreement?

A Reservation Agreement is a preliminary document between the buyer and seller (or developer). It:

• Reserves the unit for a set time (usually 14–30 days)

• Sets the initial deposit amount (often 2–5%)

• Promises that the buyer will proceed to the Sale and Purchase Agreement (SPA) within a specific timeline

• Removes the property from the market during that period

Important: This agreement is legally binding, and the deposit is usually non-refundable unless otherwise stated.

📋 What to Check Before Signing a Reservation Agreement

1. Verify the Land Title (Chanote Recommended)

For villas, ensure the land has a Chanote title — the highest form of ownership in Thailand. Avoid land with Nor Sor 3 or unclear status. Your lawyer should review the title deed before you commit.

2. Confirm the Ownership Structure

Understand whether the property will be:

• Foreign Freehold (only available for condos, and only within the 49% quota)

• Leasehold (common for villas: 30+30+30 years)

• Owned via BVI or Thai company (for certain villa projects)

🛑 Red Flag: If the agent can’t clearly explain ownership type or how it will be transferred to you.

3. Check Refund and Cancellation Terms

Reservation deposits are often non-refundable — but check if there are exceptions (e.g., if legal due diligence reveals a problem).

Ask:

• Under what conditions can I cancel?

• Will I get my deposit back if financing or visa is rejected?

• Is there a time limit for signing the SPA?
  
  

4. Know the Full Purchase Timeline

Make sure the agreement states:

• When the SPA must be signed

• When each payment is due

• When the handover will occur (especially for off-plan)

Delays from either side can cause complications — especially with resale units that involve coordination with lawyers and the Land Office.

5. Match Buyer Name to Passport or Company

Ensure the name on the Reservation Agreement matches the passport name (or company name if applicable). This helps prevent legal or registration issues later.

6. Clarify What’s Included in the Price

Ask what’s included:

• Is furniture part of the price?

• Does it include kitchen appliances, air-con units, curtains?

• Are taxes and transfer fees shared or paid fully by one party?

Get these details in writing or added as an annex.

7. Check Foreign Freehold Quota Availability

If you’re buying a condo as a foreigner, confirm the unit is still within the 49% foreign freehold quota. Otherwise, you’ll have to buy it as a leasehold — which may not be what you intended.

8. Get Legal Review — Before Signing

Don’t rush. Send the agreement to a lawyer for review — especially if:

• You’re buying off-plan

• The seller is a private individual

• The property is under company or BVI structure

🛡️ A legal check now can prevent costly issues later.

9. Verify Developer Reputation (for Off-Plan Projects)

For new projects, ask:

• Do they have completed projects?

• Are permits (like EIA and building approval) already granted?

• Is there an escrow account for buyer protection?
  
  

10. Request Reservation Receipt & Bank Transfer Details

Ensure you:

• Get an official receipt

• Transfer to the correct company/developer account

• Include a note: “For property reservation at [Project Name]”

This helps if you ever need to prove the nature of your deposit.

🧠 Final Thoughts

A Reservation Agreement is your first legal step toward owning a property in Thailand — and it sets the tone for everything that follows. Take the time to:

• Review the document

• Ask questions

• Get legal advice
  
  

You’ll protect your deposit, your timeline, and your peace of mind.

If you need help reviewing a Reservation Agreement or want to compare options before committing, I’d be happy to guide you through it — clearly and honestly.

📲 WhatsApp: https://wa.me/66623422169
📧 Email: amir.a@fazwaz.com

Let’s make your property purchase simple, safe, and stress-free.