Buying Off-Plan in Phuket: A Due-Diligence Checklist

A large share of new property in Phuket is sold off-plan: you commit to a unit or villa before it’s built, usually paying in instalments during construction. Done well, it can offer a lower entry price, a flexible payment plan and a brand-new home. Done badly, it can mean long delays, a finished product that doesn’t match the brochure, or worse.

The difference is almost always in the checks made before signing. Here’s our checklist.

1. Check the developer, not just the development

• Track record: what have they completed, and was it delivered on time and to spec? Visit a finished project and speak to owners if you can.
• Company details: confirm the developer is a registered Thai company, check how long it has existed and who is behind it.
• Financial strength: is construction funded by bank finance or entirely by buyer deposits? A project that relies on sales to fund construction carries more risk.

2. Confirm the land and permits

• Title deed: the land should have a Chanote title, owned by the developer (or held on a suitable registered lease).
• Building permit: ask to see it, and check it matches the number of units and floors being marketed.
• Environmental Impact Assessment (EIA): larger condominium projects need an approved EIA before construction. Ask for evidence.
• Zoning and height limits: Phuket has coastal building controls. Make sure what’s promised can legally be built.

3. Read the contract properly

Have an independent lawyer review the sale and purchase agreement. Pay particular attention to:

• Completion date and what happens if it’s missed — including penalties payable to you
• Specification schedule: materials, finishes, furniture and appliances should be listed, not described as “luxury”
• Unit size tolerance: how much smaller can the finished unit be before you’re entitled to a price adjustment?
• Payment schedule: payments should be tied to construction milestones, not just dates
• Refund terms if the project is cancelled or the permit is refused
• Transfer costs: who pays the transfer fee and taxes on completion (see our guide to buying costs)

4. Protect your deposits

Thailand has an escrow law, but its use for property sales is not mandatory, and many developers don’t offer it. If escrow isn’t available, milestone-based payments and a strong contract become even more important. Never pay large sums in cash, and always keep records of your overseas transfers — you’ll need the Foreign Exchange Transaction (FET) forms for a freehold condo registration.

5. Be sceptical of guaranteed returns

“Guaranteed 7% for 5 years” is a familiar headline. Ask:

• Who pays the guarantee — the developer, or a separate operating company?
• Is the guarantee priced into the purchase price? Compare with similar properties without one.
• What happens after the guarantee ends? The property’s real rental performance is what will support its resale value.

For an independent view of realistic rental income, our sister company The Property Management Company manages homes across the island and can share figures based on actual bookings.

6. Check foreign quota and ownership structure

For condos, get written confirmation that foreign quota is available for your unit. For villas, understand exactly what you’re buying — typically a land lease plus ownership of the building. Our article on foreign ownership options explains the structures.

7. Plan for handover

• Snagging inspection: have the property inspected before you accept handover and make sure defects are listed in writing.
• Defects warranty: know how long the developer is responsible for structural and finishing defects.
• Juristic person and common fees: understand how the building or estate will be managed and what the fees will be.

Off-plan vs resale

Off-plan isn’t automatically better or worse than buying a completed property. Resale lets you see exactly what you’re getting and often start earning rental income straight away; off-plan can offer better value and easier payment terms. Many buyers look at both before deciding.

Talk to us first

We’ll give you an honest opinion on any project you’re considering, including ones we don’t market. Book a call with David and the team or browse current listings.

This article is general information, not legal advice. Always use an independent Thai lawyer to review contracts and title before paying a deposit.