Buyer guide
Deposits, instalments and payment plans
A new development is paid for in stages. Each developer sets its own plan, but nearly all of them use the same four stages. This guide explains each one and what is due on top at transfer. The calculator shows how a plan turns into dates and amounts.
The four stages
- Reservation fee: a fixed sum that takes the unit off the market for a short period, often one to four weeks. It counts toward the price.
- Contract payment: paid when you sign the sale and purchase agreement. It is also called the down payment or deposit, and is commonly 10 to 30 percent of the price, less the reservation fee.
- Instalments: paid during construction, either monthly or when the building reaches stated milestones.
- Balance at transfer: paid when the unit is finished and ownership is transferred at the Land Office. It is often the largest part, commonly 50 to 70 percent.
The percentages are typical ranges from the market, not rules. The plan that binds you is the schedule annexed to your contract.
Payment plan calculator
Enter a price and a plan to see what falls due and when. The result is an example, not an offer: the schedule in your contract is the one that applies.
Start from a typical plan
The plan
Costs at transfer
What falls due
| Stage | Amount |
|---|---|
| Reservation feeWhen you reserve | ฿100,000 |
| Contract payment, less the reservation feeWhen you sign the contract | ฿800,000 |
| 18 monthly instalments of ฿50,000While the project is built | ฿900,000 |
| BalanceAt transfer | ฿4,200,000 |
| Transfer fee, your shareAt transfer | ฿60,000 |
| Sinking fundAt transfer | ฿24,000 |
| Common fees in advanceAt transfer | ฿28,800 |
- Paid before completion
- ฿1,800,000
- Due at transfer, with costs
- ฿4,312,800
- Total, price and costs
- ฿6,112,800
The transfer fee is charged on the value the Land Office assesses, which is often lower than the price; the calculator uses the price. Furniture, meter deposits and bank charges are not included. Amounts are shown in the currency you have chosen at the top of the page; the plan itself is in Thai baht.
What a reservation fee is, and is not
A reservation fee holds one unit at one price for a stated period while you read the contract and arrange the contract payment. The reservation form should state the unit, the price, the period and when the fee is returned.
Reservation contracts for condominium units are regulated by Thai consumer protection rules, which list cases in which the fee must be returned. Outside those cases, a buyer who does not go on to sign normally loses it. Ask before you pay, and get the answer on the form.
Common shapes of plan
- Light during construction, heavy at transfer: for example 25 to 30 percent while the building goes up and the rest on completion. Most of your money stays with you until there is a finished unit.
- Stage payments: amounts tied to construction milestones such as foundations, structure, roof and finishes. Common for villas. Ask who confirms that a milestone has been reached.
- Short plans: for projects close to completion, a larger contract payment and the balance within a few months.
Developers sometimes offer a discount for paying more of the price early. Weigh it against the risk: money paid before completion depends on the developer finishing the project.
If a payment is late
The contract sets interest on late payments and, after written notice and a grace period, the developer's right to cancel and keep what the contract allows. The standard condominium contract limits what a developer may charge and gives you matching rights when the developer is the one who is late. Know the grace period before you need it, and tell the developer early if a transfer from abroad is delayed.
What is due on top at transfer
- Transfer fee: 2 percent of the value the Land Office assesses for the unit. When you buy a condominium from a developer, the standard contract splits it equally between you and the developer.
- Sinking fund: a one-off contribution to the building's reserve, charged per square metre.
- Common fees in advance: usually the first year, charged per square metre per month.
- Meter deposits and connection charges for electricity and water.
- Furniture and fitting-out, if they are not part of the price.
The developer pays its own taxes on the sale. Check the list of who pays what in your contract; it is the list that applies to you.
Paying in baht from abroad
The price and every instalment are in Thai baht. If your money is in another currency, what each instalment costs you moves with the exchange rate for as long as the plan runs. For a freehold condominium the money must also arrive from abroad in foreign currency, with a bank document for each transfer. Our guide to paying from abroad explains how.