In Thai practice, a buyer who cancels loses the deposit, and a seller who cancels returns it and can also owe provable damages. The contract can change both rules, so the clauses below decide whether your money comes back.
What are the three stages of payment in a Thai property purchase?
A Phuket purchase usually moves through three payments, and the contract sets the refund rule for each.
- Reservation deposit (booking fee). A small payment that holds the unit before the sale and purchase agreement (SPA) is drafted. The developer or seller holds it, and it becomes the first SPA instalment when both sides go ahead.
- SPA deposit or down payment. Paid on signing the sale and purchase agreement: the SPA sets the amount. The seller or an escrow agent holds it.
- Milestone instalments and final balance. Off-plan, paid at foundation, roof, fit-out and handover (see Off-plan payment schedules in Phuket: how to read them). On resale, paid at transfer.
The earlier the stage, the more room the buyer has to move.
Is a reservation deposit refundable in Thailand?
Yes, unless the buyer is the one who cancels and the reservation form says nothing else. An off-plan condo bought from the developer has its own rules. Since 31 January 2025, the Office of the Consumer Protection Board (OCPB) prescribes the form of the condo reservation contract. Under it, the reservation fee is not a deposit or down payment, and the developer may keep it only when you do not sign the SPA in the time the contract sets, and only after it gives you written notice and at least 7 days from receipt to sign. The developer returns the fee within 15 days in cash, by transfer or by cheque, or within 45 days to a credit card, less any card fees, when:
- the developer does not sign the SPA with you on time, does not get the construction permit, or changes the project or materials without your consent;
- the developer knew you were applying for a bank loan and the bank did not approve it in the agreed time.
For a villa, a house or a resale unit, the reservation deposit (Thai: jong) is earnest money, and the reservation form governs it. Where the form is silent, sections 377-378 of the Civil and Commercial Code apply:
- Buyer cancels: the seller keeps the deposit (section 378(2)).
- Seller cancels: the seller returns the deposit. This is a simple return, with no doubling by statute (section 378(3)).
- Force majeure, neither party at fault: the deposit comes back and both sides are released (section 219).
- Both sides perform: the deposit goes toward the price (section 378(1)).
Do you want double back if the seller pulls out? That comes from the contract, not the law, so negotiate a doubling clause into the reservation form. On top of the returned deposit you can claim provable damages, such as legal fees and mortgage application fees. In consumer cases, the Unfair Contract Terms Act B.E. 2540 lets a court strike out a clause that caps the seller’s liability.
Thai law gives no statutory cooling-off period on property purchases. One exists only if the contract creates it, and some developers offer 7 days. Ask for at least 7 days in the reservation form and use them for due diligence.
When is a signed SPA deposit refundable?
When one of the SPA’s refund clauses applies. These are the ones to look for:
- Force majeure. If the project becomes impossible through neither side’s fault, section 219 releases both parties and your payments come back.
- Material delay. The SPA sets the delay, for example 6 or 12 months past handover. Without such a clause, give the developer written notice to perform within a reasonable period. If it still does not perform, section 387 of the Civil and Commercial Code lets you rescind. This route is slower.
- Substantial defects. Attach the unit specifications to the SPA as an annex. If the delivered unit differs substantially, you can refuse handover and ask for your payments back.
- Financing contingency. If your mortgage is not approved within 30-60 days of signing, the SPA is rescinded and the deposit returned. Most standard SPAs assume cash, so negotiate this in if you use Thai bank financing.
- Buyer-side force majeure. A clause that lets you rescind on serious illness, death or other named events. It is rare, but worth asking for.
- Cooling-off after signing. A few developers offer a few days after the SPA is signed.
Is my deposit safe when booking a Thai villa a year in advance?
It is safest with a licensed escrow agent under a written escrow agreement. The Escrow Act B.E. 2551 (2008) is not automatic: it applies when the parties and a licensed agent sign a written agreement with the prescribed terms. The Ministry of Finance licenses the agents (sections 9-10), and most are major Thai banks: Bangkok Bank, Kasikornbank, SCB, Krungthai, Krungsri and TTB.
Under an escrow agreement:
- your payments go into a dedicated escrow account, not to the developer;
- the agent releases money only when the conditions written in the escrow agreement are met, such as verified construction milestones, and if the contract is rescinded, it pays the money to the party the agreement names;
- in a dispute over rights and duties under the escrow contract, the agent holds the funds until the parties agree or a court gives final judgment. Read its dispute terms before you sign.
The fee is 0.1-0.3% of the contract value, usually split between buyer and developer. Before you sign, check that the agent named in the contract is on the Ministry of Finance licensed list. More in Escrow account in Thailand: the bank holds your payments until the building exists.
How can I recover my deposit if the deal goes wrong?
Start with a lawyer’s demand letter, then escalate if you need to.
- Demand letter. A Thai lawyer charges THB 5,000-15,000. The letter cites the SPA clauses and the Civil and Commercial Code and sets a deadline.
- OCPB complaint. The Office of the Consumer Protection Board takes complaints on consumer purchases from foreign and Thai buyers. It is free, takes 3-12 months, and mediates or refers the case to court.
- Civil court. File in the court where the property is. Filing fees are about 1-2.5% of the claim, first instance takes 12-24 months, and the judgment is enforceable against the developer’s assets.
- Arbitration. If the SPA names it (the Thai Arbitration Institute or an international body), it is faster than court but costs more up front.
Due diligence on the developer’s finances before you reserve makes these routes much less likely to be needed.
What should I insist on before paying a Thai property deposit?
Before the reservation deposit:
- A written reservation form
- Refund conditions stated on the form
- A 7-14 day window for the SPA to be presented
- Signature of an authorised officer of the developer or seller, with the company stamp
Before the SPA:
- Material-delay clause: full refund plus interest after a set delay such as 6 months past handover
- Force majeure clause
- Specifications annex
- Financing contingency, if you use a mortgage
- Escrow confirmed, for off-plan
- Penalty for late milestones
- Bilingual contract or certified Thai translation
- Review by an independent Thai lawyer not paid by the developer (THB 15,000-40,000)
That review is the best-value money you spend on the purchase, and it usually wins 1-3 clause changes.
