Contact Us | Published on: 18 July 2024 | Updated: 29 April 2026 | 4 MIN READ

Understanding Sales and Purchase Agreements

When purchasing a condominium in Thailand, the process is typically straightforward—especially for completed developments. A standard Sales and Purchase Agreement (SPA) governs the transaction and involves a simple transfer of ownership at the Land Office.

However, in the case of off-plan (pre-construction) developments, several additional factors must be carefully reviewed. These include the developer’s business structure, the project’s legal framework, and the validity of construction permits and licenses. A reputable real estate agent should be able to provide honest feedback on the developer’s reputation, share evidence of previous projects completed, and highlight any red flags discovered during the due diligence process.

When it comes to purchasing houses or villas, the legal framework differs slightly. Such properties are typically acquired through either a Thai company structure—where the property is held as a company asset—or under a 30-year renewable leasehold agreement. These structures are more complex, and retaining an experienced property lawyer is highly recommended to navigate the process smoothly.

Why Engage a Lawyer for Condo Purchases

Thailand’s Condominium Act, enacted in 1978, provides a robust legal foundation for condominium ownership. Under this law, foreigners can legally own a condominium freehold in their own name, provided that the funds used for the purchase are remitted from overseas in foreign currency.

In large-scale developments where numerous units have already been sold, it’s common for the SPA to have been reviewed and amended multiple times by different law firms. Therefore, lawyers engaged by new buyers are often already familiar with the contract and the developer’s practices. This prior knowledge allows for more efficient reviews and ensures that any known issues are already addressed in the developer’s standard contract.

Moreover, each time a lawyer suggests a clause that strengthens buyer protection—such as clarifications on completion timelines, defect liability, or refund conditions—the developer often updates the master version of their agreement. As a result, the SPA in well-established projects is typically the product of several iterations, refined through feedback from both local and international legal experts.

The Role of a Real Estate Lawyer

Clients frequently ask about the role of lawyers and how the process unfolds. As an agency, we can recommend suitable lawyers based on your needs but remain neutral—we do not endorse specific firms. The lawyer’s role is to represent the buyer’s interests exclusively, while the agent facilitates communication between all parties and assists with gathering required documentation.

The process typically begins with a Reservation Agreement, a brief one-page document outlining the key terms of sale and deposit details. This can be executed without a lawyer. However, the Sales and Purchase Agreement is a more formal and binding document, prepared by the seller’s lawyer based on the reservation details.

While agents can sometimes assist by providing a template in transactions without legal representation, this approach is strongly discouraged. Omitting legal oversight may lead to serious complications later, particularly in the event of disputes or arbitration.

What Does a Lawyer Actually Do?

Once the SPA is prepared, the buyer’s lawyer will:

1. Review and amend the contract where necessary to protect the buyer’s interests.
2. Verify the land title deed to ensure there are no encumbrances or ownership disputes.
3. Conduct a background check on the developer or seller.
4. Confirm building permits, environmental clearances, and any relevant development licenses.

Some lawyers also offer due diligence packages, which include property inspections and confirmation that the project complies with all applicable zoning and building regulations.

Typical Legal Fees in Thailand

Legal fees depend on the property’s value and the range of services required. As a general rule, buyers can expect to pay around 1% of the property’s purchase price. Some lawyers include a limited number of contract revisions in this fee, while others charge an hourly rate for additional amendments.

Given the scale of investment and the potential for unforeseen complications, the cost of hiring a competent lawyer is relatively modest—and often the best form of protection a buyer can have.

Key Takeaway

While purchasing property in Thailand can be straightforward, the process is smoother and safer when guided by a qualified lawyer. Whether you are buying a completed condominium, investing in an off-plan project, or acquiring a villa under leasehold, legal due diligence provides peace of mind and ensures your investment is properly protected from the start.

Whether you're an investor, a future resident, or simply exploring your options, now is the time to think long-term. Browse our curated collection of suitable properties in Phuket—or reach out for a personal consultation. Better yet, schedule a one-on-one video call with Alex Seago, Managing Director of Pulse Real Estate. The team will help you find a home that makes sense for today—and for tomorrow.