Is a Phuket Property Reservation Deposit Refundable?

Concise answer

A Phuket property reservation deposit is not automatically refundable or automatically non-refundable. The result depends on:

• Whether the payment is legally a reservation fee, deposit, earnest money or part-payment
• The reservation agreement’s wording
• Whether the property is a condominium or villa
• Whether the buyer or developer failed to perform
• Whether refund conditions were agreed
• Whether material information was misrepresented
• Whether legal due diligence identifies an unacceptable problem
• Whether financing or foreign-freehold ownership was an express condition
• Thai contract and consumer-protection law

If the buyer simply changes their mind without a contractual cancellation right, the developer may be entitled to retain the payment.

A refund may be available when:

• The developer refuses or cannot enter the promised sale contract
• Foreign-freehold ownership cannot be delivered as promised
• Legal due diligence reveals a material title, permit or ownership problem
• The developer materially changes the unit, price or project
• An agreed financing condition is not satisfied
• The reservation agreement expressly allows cancellation
• The developer breaches the agreement
• The payment was collected under an unfair or prohibited term

For qualifying condominium reservations, Thailand introduced specific contract-control requirements effective from 31 January 2025. These require greater clarity regarding reservation terms, refund conditions and prohibited clauses.

Villa reservations do not necessarily receive the same condominium-specific protection.

The safest approach is to make the payment expressly refundable during a short legal-review period and to list every condition that must be satisfied before it becomes non-refundable.

Detailed explanation

1. The name given to the payment is not always decisive

A first payment may be described as:

• Reservation fee
• Booking fee
• Holding deposit
• Earnest money
• Security deposit
• Initial deposit
• Down payment
• First instalment
• Commitment fee

These expressions are often used interchangeably in sales discussions, but they may have different legal effects.

The buyer should determine:

• What the document calls the payment
• What the payment is intended to secure
• Whether it forms part of the purchase price
• When it becomes non-refundable
• What happens if either party does not proceed
• Whether a formal sale agreement already exists

The substance of the transaction may matter more than the label printed on the receipt.

2. A reservation agreement is a real contract

A reservation form may be only one or two pages long, but it can still create legally binding obligations.

It may require the buyer to:

• Pay the reservation amount
• Sign the main sale agreement by a stated date
• Pay a larger deposit
• Provide identification documents
• Select an ownership structure
• Complete legal review quickly
• Forfeit the payment if the buyer does not proceed

It may require the developer or seller to:

• Remove the property from the market
• Preserve the agreed price
• Reserve the specified unit
• Provide documents
• Enter the main contract
• Refund the payment in defined circumstances

A document should not be treated as informal merely because it is called a “booking form.”

3. There is not a universal Phuket cooling-off period

A foreign buyer should not assume there is an automatic:

• Three-day cancellation period
• Seven-day cooling-off period
• Fourteen-day refund right
• Right to cancel after returning home
• Right to cancel after consulting family
• Right to cancel because exchange rates changed

Any voluntary cooling-off period should be written into the reservation agreement.

If no such right exists, a simple change of mind may result in the buyer losing the reservation payment.

4. Condominium reservations now have specific contract controls

Thailand’s Contract Committee issued the Announcement Re: Designating the Business of Selling Condominium Units with Reservations as a Contract-Controlled Business, B.E. 2567 (2024).

The announcement was published in October 2024 and became effective on 31 January 2025. It regulates qualifying transactions in which a consumer pays a reservation fee to a condominium business operator before entering the subsequent unit sale agreement.

The measure requires prescribed information and protections and restricts certain terms that disadvantage consumers. The Office of the Consumer Protection Board continues to inspect compliance with the condominium-reservation rules. OCPB enforcement announcement

The rules should be reviewed using the Thai text and applied to the particular transaction.

5. The condominium rules distinguish a reservation fee from a deposit

The 2024 condominium-reservation framework is directed at payments made to reserve a condominium unit before the subsequent sale contract.

This reservation payment is conceptually distinct from:

• A statutory deposit or earnest
• A down payment
• A construction instalment
• The balance of the purchase price

This matters because different legal rules may apply depending on when the payment was made and what agreement already existed.

A buyer should not assume that every payment called a “deposit” falls into the same category.

6. The prescribed condominium contract requires important information

A qualifying condominium reservation contract should clearly identify matters including:

• Developer or business operator
• Consumer
• Condominium project
• Reserved unit
• Unit position and area
• Purchase price
• Reservation amount
• Payment method
• Date for signing the sale agreement
• Material terms of the future purchase
• Refund circumstances
• Refund procedure
• Parties’ termination rights
• Relevant notices and supporting documents

The OCPB lists the condominium-reservation announcement among Thailand’s contract-controlled business measures. OCPB contract-control resources

The buyer should receive and retain a complete copy of the signed reservation contract.

7. Some contractual terms may be prohibited

The condominium-reservation rules restrict provisions that improperly disadvantage consumers.

Examples may include terms that:

• Exclude the developer’s liability for its own breach
• Let the developer change material terms unilaterally
• Allow confiscation when the consumer is not at fault
• Allow termination by the developer without proper notice
• Impose additional burdens not reasonably disclosed
• Prevent the buyer from exercising lawful consumer rights

A printed statement that a reservation fee is “non-refundable under all circumstances” should not be accepted without reviewing the applicable law and facts.

8. The rules do not make every cancellation refundable

The consumer-protection framework does not necessarily allow a buyer to reserve a condominium, change their mind without cause and automatically demand the money back.

The buyer’s entitlement still depends on:

• Reservation terms
• Reason for cancellation
• Buyer’s compliance
• Developer’s compliance
• Applicable refund condition
• Whether the developer can remedy the problem
• Whether the buyer qualifies as a consumer
• Whether the transaction falls within the controlled-business definition

The rules improve transparency and fairness; they do not convert every reservation into a free option.

9. Villa reservations may be treated differently

The condominium-reservation announcement specifically concerns qualifying condominium-unit reservations.

A reservation involving a:

• Completed villa
• Off-plan villa
• House-and-land package
• Land lease
• Separate building purchase
• Company-share transfer
• Horizontal condominium villa
• Branded residence outside a registered condominium

may require a different legal analysis.

A villa buyer may still have rights under:

• Thai Civil and Commercial Code
• Consumer Protection Act
• Unfair Contract Terms Act
• Applicable land-development legislation
• Misrepresentation principles
• Specific contract wording

However, the buyer should not automatically apply the condominium-reservation rules to every property marketed as a residence.

10. Section 377 addresses deposits as evidence and security

Section 377 of the Thai Civil and Commercial Code generally treats something given as a deposit at the conclusion of a contract as:

• Evidence that the contract was concluded, and
• Security for performance

Whether a particular reservation payment qualifies as this kind of deposit depends on the agreement and surrounding facts.

The distinction should be reviewed by a Thai lawyer rather than assumed from an English translation or receipt heading.

11. Section 378 addresses what happens to a deposit

Unless the parties have agreed otherwise, Section 378 generally provides that a deposit:

• Is returned or applied toward performance when the contract is completed
• May be retained when the party who gave it fails to perform or is responsible for the contract failing
• Should be returned when the party receiving it fails to perform or is responsible for impossibility

The relevant provisions appear in Sections 377–378 of the Thai Civil and Commercial Code. Thai Civil and Commercial Code—deposits and penalties

The reason the transaction did not proceed is therefore central.

12. Thai law does not automatically require double repayment

Buyers sometimes assume that if the seller defaults, the seller must return twice the deposit.

That is not the general rule expressed in Section 378.

Unless the contract or another applicable rule clearly provides otherwise, the ordinary statutory position concerns returning the deposit—not automatically doubling it.

Separate damages, interest or contractual penalties may still be claimed when legally justified.

13. A part-payment may not be forfeitable like a deposit

A large payment described as a deposit may actually represent:

• Part of the purchase price
• First contractual instalment
• Advance construction payment
• Foreign-freehold premium
• Furniture payment
• Upgrade payment

Whether the seller may retain the full amount depends on the contract, the nature of the payment, applicable law and actual loss.

A developer cannot necessarily convert every amount received into forfeitable earnest money simply by calling it “non-refundable.”

14. The buyer changing their mind is the weakest refund case

A refund is less likely when:

• Property is as represented
• Developer is ready to proceed
• Due diligence reveals no material problem
• Ownership is available as promised
• Buyer simply prefers another property
• Buyer’s personal plans change
• Exchange rate becomes less favourable
• Buyer later considers the price too high
• Family members disagree
• Buyer did not arrange funds

A negotiated refund or transfer to another unit may still be possible, but it should not be assumed as a legal entitlement.

15. A due-diligence condition should be written expressly

A buyer should ideally reserve the property subject to satisfactory legal due diligence.

The clause should specify:

• Review period
• Documents the seller must provide
• Buyer’s lawyer
• Material matters to be checked
• Buyer’s right to withdraw
• Refund deadline
• Payment method
• Whether reasons must be provided
• Whether minor issues allow the seller to cure
• What happens if documents arrive late

Without an express condition, the developer may argue that legal concerns do not entitle the buyer to cancel.

16. Due diligence should cover more than the title deed

Potential due-diligence conditions may include:

• Seller or developer owns the property
• Company has authority to sell
• Title is valid
• Property is not subject to unacceptable encumbrances
• Foreign-freehold quota is available
• Land lease can be registered
• Building ownership can be established
• Required permits exist
• Access is lawful
• Utilities are legally available
• Project approvals are in place
• Mortgage release is possible
• Contract terms are acceptable
• No prohibited nominee structure is required

The reservation document should state which findings justify withdrawal and a refund.

17. Foreign-freehold availability should be a condition

A foreign condominium buyer may reserve a unit marketed as foreign freehold.

The reservation should state that the payment is refundable if:

• Unit cannot be transferred to the buyer as foreign freehold
• Foreign quota is unavailable
• Developer cannot provide required certification
• Unit must instead be transferred as leasehold
• Foreign-freehold premium changes
• Land Office will not accept the intended structure

The buyer should not be forced to accept leasehold because the developer cannot deliver promised foreign-freehold ownership.

18. Buyer qualification and building quota are separate

A foreign condominium transaction requires consideration of:

1. Whether the buyer qualifies under the Condominium Act
2. Whether the registered condominium has sufficient foreign quota

A buyer may correctly remit foreign currency and still be unable to receive foreign freehold because the quota is unavailable.

Conversely, quota may exist but the buyer may lack acceptable foreign-funds evidence.

The reservation agreement should allocate both risks clearly.

19. Financing should be an express condition

A buyer should not assume a reservation is refundable merely because:

• Thai mortgage is refused
• Overseas bank declines financing
• Loan amount is lower than expected
• Interest rate increases
• Bank valuation is insufficient
• Currency movement affects affordability

If financing is necessary, the agreement should specify:

• Minimum loan amount
• Approved lender or acceptable lenders
• Application deadline
• Buyer’s obligation to cooperate
• Evidence of rejection
• Refund entitlement
• Refund deadline
• Whether one or several rejections are required

An undefined phrase such as “subject to finance” can create disagreement.

20. Financing failure is not always outside the buyer’s control

A developer may oppose a refund if financing fails because the buyer:

• Did not apply on time
• Provided incomplete information
• Withheld financial documents
• Applied for an inadequate loan
• Changed employment
• Took new debt
• Failed affordability checks
• Refused a loan meeting agreed conditions

The financing clause should distinguish genuine lender rejection from buyer-caused failure.

21. Material project changes may support a refund

A buyer may have a stronger claim if the developer changes:

• Unit number
• Floor
• View
• Area
• Layout
• Ceiling height
• Balcony
• Pool size
• Land plot
• Building position
• Ownership type
• Purchase price
• Common facilities
• Completion schedule
• Building density
• Materials
• Rental programme

Not every minor technical adjustment creates a cancellation right.

The reservation agreement should define permitted tolerances and material changes.

22. Misrepresentation may affect enforceability

A reservation may have been induced by statements concerning:

• Guaranteed sea view
• Beach access
• Foreign freehold
• Hotel licence
• Guaranteed rental return
• Completion date
• Developer track record
• Branded management
• Building permit
• Government approval
• Land title
• Project financing

The buyer should preserve:

• Brochures
• Advertisements
• Price lists
• Emails
• Messages
• Renderings
• Presentation slides
• Recorded representations where lawful
• Website screenshots

A merger or entire-agreement clause may complicate reliance on statements not included in the signed document.

23. The developer refusing the promised contract may trigger a refund

A buyer may reserve based on agreed core terms and later receive a sale agreement containing materially different provisions.

Differences may concern:

• Ownership
• Price
• Payment schedule
• Completion
• Grace period
• Refund rights
• Rental restrictions
• Common fees
• Developer liability
• Unit substitution
• Force majeure
• Dispute resolution
• Assignment
• Resale
• Specifications

The reservation should attach or identify the agreed form of sale contract.

Otherwise, the parties may disagree about whether the developer changed the bargain or the buyer simply refused normal terms.

24. The deadline for signing the main contract matters

Reservation forms frequently require the sale agreement to be signed within:

• 7 days
• 14 days
• 30 days
• Another short period

The buyer should ensure the period allows enough time for:

• Document delivery
• Translation
• Legal review
• Title search
• Ownership analysis
• Contract negotiation
• Funds preparation
• Financing approval

A deadline should be extended automatically when the developer has not supplied the required documents.

25. Silence can cause the buyer to lose leverage

If the buyer receives an unacceptable contract but does nothing until the signing deadline passes, the developer may allege buyer default.

The buyer should respond in writing by:

• Identifying disputed terms
• Requesting documents
• Requesting an extension
• Reserving rights
• Explaining unmet conditions
• Demanding a refund where applicable

Informal discussions with the sales representative may not protect the buyer contractually.

26. The correct recipient of the payment must be identified

A reservation payment might be made to:

• Developer company
• Project company
• Property owner
• Seller
• Agent
• Lawyer
• Marketing company
• Payment processor
• Individual salesperson

Before paying, the buyer should confirm:

• Contracting party
• Legal payee
• Bank-account owner
• Authority to collect
• Receipt issuer
• Responsibility for refund
• Whether funds are held or immediately released

A payment to an unauthorized individual creates additional recovery risk.

27. Paying an agent does not necessarily make the developer liable

The buyer should determine whether the agent:

• Collected as an authorised representative
• Held the funds as stakeholder
• Transferred funds to the developer
• Issued the reservation agreement
• Guaranteed the refund
• Disclosed its role

The document should state who owes the refund.

A buyer should avoid transferring a reservation amount to a salesperson’s personal account without documented authority and independent verification.

28. Escrow is different from direct payment

A payment held in genuine escrow may be released only when agreed conditions are satisfied.

A direct payment to the developer normally becomes part of the developer’s funds immediately.

The buyer should verify:

• Who holds the money
• Whether the arrangement is legally recognised
• Release conditions
• Refund conditions
• Bank account
• Interest
• Dispute procedure
• Holder’s independence
• What happens if the developer becomes insolvent

Calling an ordinary developer account an “escrow account” does not make it escrow.

29. Credit-card payment may create a separate remedy

A buyer who paid by credit card may potentially request a chargeback through the card issuer when:

• Transaction was unauthorised
• Service or property was not provided
• Merchant agreed to refund but did not
• Transaction materially differed from what was promised
• Another card-scheme reason applies

A chargeback is governed by card-network and issuing-bank rules. It is not a guaranteed legal refund.

Deadlines may be short, so the buyer should contact the card issuer promptly.

30. Cryptocurrency payments can complicate refunds

If a developer accepts cryptocurrency, the agreement should specify:

• Thai-baht purchase price
• Exchange rate
• Valuation time
• Wallet addresses
• Network fees
• Refund currency
• Refund exchange rate
• Compliance documentation
• Responsibility for volatility

A refund of the original number of tokens and a refund of the original Thai-baht value can produce very different outcomes.

Cryptocurrency records may also be insufficient for foreign-freehold condominium registration unless the required foreign-exchange evidence is separately established.

31. An overseas transfer should identify its purpose

For a foreign condominium purchase, the buyer should follow the receiving bank’s instructions concerning:

• Sender’s name
• Recipient
• Foreign currency
• Payment purpose
• Property or unit reference
• Bank certificate
• Foreign Exchange Transaction documentation

Even at reservation stage, traceable records help preserve the source-of-funds chain.

The buyer should not assume the reservation receipt alone will satisfy Land Office foreign-funds requirements.

32. A refund should be documented properly

The refund agreement or confirmation should record:

• Buyer
• Developer or seller
• Property
• Original payment
• Reason for refund
• Amount
• Currency
• Bank details
• Payment deadline
• Interest, if applicable
• Treatment of bank charges
• Whether contract is terminated
• Whether claims are released
• Tax documentation
• Foreign-remittance documents

The buyer should not sign a broad release before receiving the money unless independently advised.

33. Refund deadlines vary according to the legal basis

For qualifying controlled condominium reservation contracts, the prescribed framework includes specific refund timing depending on payment method and circumstances.

Published legal analyses of the 2024 announcement describe timelines of:

• Up to 15 days for qualifying refunds by cash, bank transfer or cheque
• Up to 45 days where the original payment was made by credit card

The exact Thai announcement and the particular transaction should be reviewed before relying on these periods. Tilleke & Gibbins analysis of the condominium-reservation rules

A villa refund or a payment made under the main sale agreement may follow different contractual and legal rules.

34. A developer should not replace a cash refund unilaterally

A developer may offer:

• Credit note
• Transfer to another unit
• Transfer to another project
• Future purchase voucher
• Furniture credit
• Rental credit
• Assignment to another buyer

These may be commercially useful but are not necessarily equivalent to repayment.

The buyer should have the right to evaluate and reject a materially different remedy unless the agreement provides otherwise.

35. Assignment may offer an alternative exit

If a refund is unavailable, the developer may permit the buyer to:

• Assign the reservation
• Nominate another buyer
• Transfer to a different unit
• Resell before the main contract
• Apply the payment to another project

The buyer should check:

• Developer approval
• Assignment fee
• Deadline
• New buyer qualification
• Price restrictions
• Foreign quota
• Agent commission
• Tax implications
• Release of original buyer

The original buyer should receive a written release from further liability.

36. A “non-refundable” clause is not always conclusive

A clause stating that every payment is non-refundable may still require review when:

• Developer is in breach
• Buyer is not at fault
• Developer cannot provide promised ownership
• Material information was false
• Controlled-contract rules apply
• Term is unfair or prohibited
• Payment is actually part of the price
• Contract never became effective
• Seller lacked authority

Conversely, the fact that the buyer considers the clause unfair does not automatically invalidate it.

Legal enforceability depends on the particular wording, transaction and applicable legislation.

37. The seller should not reserve the same property twice

The reservation should require the developer or seller to:

• Remove the unit from availability
• Stop accepting competing reservations
• Preserve the agreed price
• Not transfer the property to another party
• Refund the buyer if exclusivity is breached

The buyer should obtain a receipt identifying the exact unit or villa.

A generic receipt that does not identify the reserved property offers weak protection.

38. The reservation should state whether the price is fixed

The document should identify:

• Base price
• Foreign-freehold premium
• Furniture
• Appliances
• Upgrades
• Taxes
• Transfer fee allocation
• Common fees
• Sinking fund
• Lease-registration fees
• Management charges
• Promotions
• Discounts

If the developer later increases the price or adds undisclosed mandatory charges, the buyer may argue that the developer has not offered the promised transaction.

39. The developer’s insolvency can make a valid refund claim worthless

Even where the buyer clearly has a refund right, recovery depends on the developer’s ability to pay.

Warning signs include:

• Construction stops
• Refund is repeatedly postponed
• Developer requests instalments early
• Multiple buyers complain
• Contractors remain unpaid
• Project land is heavily mortgaged
• Company accounts are overdue
• Directors change
• Court proceedings begin

The buyer should act early. A reservation holder may be only an unsecured creditor if the developer becomes insolvent.

40. Independent legal review should happen before payment

The buyer’s lawyer should examine:

• Identity of developer or seller
• Authority to sell
• Reserved property
• Ownership type
• Title
• Foreign quota
• Reservation classification
• Refund conditions
• Legal-review condition
• Financing condition
• Signing deadline
• Main sale agreement
• Purchase price
• Payment schedule
• Material specifications
• Project approvals
• Completion
• Developer-default provisions
• Buyer-default provisions
• Notice requirements
• Assignment
• Dispute resolution
• Applicable consumer protections
• Refund security

The lawyer should explain:

• When the payment is refundable
• When it may be forfeited
• What conditions should be added
• Who holds the money
• What happens if due diligence fails
• What happens if the buyer changes their mind
• What happens if the developer changes the transaction
• How and when a refund must be requested

Reservation-deposit outcome comparison

Recommended reservation wording checklist

Before paying a reservation amount, the buyer should require the document to address:

1. Full legal name of developer or seller.
2. Company registration details.
3. Person authorised to sign.
4. Exact project.
5. Exact unit, villa or plot.
6. Agreed ownership structure.
7. Total purchase price.
8. Foreign-freehold premium.
9. Reservation amount.
10. Classification of the payment.
11. Bank-account owner.
12. Whether payment forms part of the price.
13. Reservation period.
14. Deadline for signing the main agreement.
15. Draft main agreement supplied before payment.
16. Satisfactory legal due diligence condition.
17. Due-diligence period.
18. Documents the seller must provide.
19. Extension if documents are late.
20. Foreign-quota condition.
21. Foreign-funds condition.
22. Financing condition, if required.
23. Title condition.
24. Mortgage-release condition.
25. Building-permit condition.
26. Access and utility conditions.
27. Price fixed during reservation.
28. Specifications fixed or attached.
29. Permitted area tolerance.
30. Developer-change restrictions.
31. Buyer cancellation rights.
32. Developer cancellation rights.
33. Refund events.
34. Refund amount.
35. Refund deadline.
36. Refund method and currency.
37. Bank-charge allocation.
38. Interest for late refund.
39. Notice procedure.
40. Assignment rights.
41. Dispute-resolution process.
42. Governing law.
43. Thai and English language precedence.
44. Copies supplied to both parties.
45. Signatures and date.
46. Official receipt.
47. No conflicting handwritten or electronic terms.
48. No broad waiver of consumer rights.
49. No payment to an unverified personal account.
50. Independent Thai legal review before payment.

Practical refund checklist

If the buyer wants a reservation payment returned, the buyer should:

1. Stop making informal assumptions.
2. Locate the signed reservation agreement.
3. Identify the legal payee.
4. Identify the payment classification.
5. Locate the receipt.
6. Identify the main-contract deadline.
7. Identify all refund conditions.
8. Identify all forfeiture provisions.
9. Determine why the transaction did not proceed.
10. Establish whether the buyer or developer caused the failure.
11. Check whether condominium contract-control rules apply.
12. Check whether a legal-review condition exists.
13. Check whether a financing condition exists.
14. Check whether foreign-freehold ownership was promised.
15. Check foreign-quota availability.
16. Compare the offered sale agreement with the reservation.
17. Identify material changes.
18. Preserve advertisements and messages.
19. Preserve due-diligence findings.
20. Preserve financing rejection documents.
21. Preserve bank-transfer evidence.
22. Preserve FET or foreign-exchange evidence.
23. Contact the developer in writing.
24. Follow the contractual notice procedure.
25. State the contractual refund basis.
26. State the amount claimed.
27. Provide correct bank details securely.
28. Set a reasonable payment deadline.
29. Avoid accepting vague future promises.
30. Do not sign a broad release prematurely.
31. Consider whether assignment is preferable.
32. Contact the credit-card issuer promptly if relevant.
33. Consider OCPB mediation where applicable.
34. Investigate the developer’s solvency if payment is delayed.
35. Obtain independent Thai legal advice before commencing proceedings.

Greg’s professional perspective

A reservation payment should buy the purchaser a clearly defined opportunity—not an avoidable legal dispute.

Before a client reserves a Phuket property, I want the document to answer five questions:

1. Exactly what property is being reserved?
2. What ownership structure is being promised?
3. What must the seller provide during legal review?
4. Under what circumstances can the buyer withdraw?
5. How quickly will the money be returned if a condition fails?

The biggest practical mistake is paying first and asking for legal-review protection afterward. Once the money is in the developer’s account and the document says “non-refundable,” the buyer’s negotiating position is weaker.

For an international buyer, I would normally want a short but genuine due-diligence period. If title, foreign quota, permits, access, ownership structure or the main contract is materially unacceptable, the reservation should be refundable.

That does not mean a buyer should be able to reserve a property indefinitely and walk away casually. A fair reservation protects both parties: the developer removes the property from sale, while the buyer receives time to verify the transaction.

Clear conditions protect good developers as well as buyers. Everyone knows the rules before money changes hands.

That is how Phuket Realtor helps international purchasers Invest with Confidence.

Applicable date

Current as reviewed on: 7 September 2026

Thai contract law, consumer-protection measures and prescribed reservation-contract requirements may change. This entry should be reviewed following legislative amendments, new Contract Committee announcements, OCPB guidance or material Thai court decisions affecting property deposits and reservation fees.

Location and property types

Location: Phuket, Thailand
Primary property types: Condominiums, villas, houses and off-plan developments
Ownership types: Foreign freehold, Thai freehold, registered leasehold and separate villa-building ownership
Transaction types: Reservations, bookings, preliminary agreements and pre-sale transactions
Buyer type: Foreign individuals, investors, retirees, holiday-home buyers and qualifying foreign entities

Verified legal and authoritative sources

• Thai Civil and Commercial Code, Section 377 — concerns deposits as evidence of a contract and security for performance.
• Thai Civil and Commercial Code, Section 378 — concerns application, retention or return of a deposit depending on performance and responsibility.
• Thai Civil and Commercial Code, Sections 379–385 — concerns agreed penalties and judicial adjustment.
• Thai Civil and Commercial Code, Sections 386–394 — concerns termination, notice, restoration and damages.
• Consumer Protection Act B.E. 2522 (1979), as amended — establishes Thailand’s consumer-protection framework.
• Unfair Contract Terms Act B.E. 2540 (1997) — concerns certain unfair or excessively advantageous contractual terms.
• Announcement of the Contract Committee Re: Designating the Business of Selling Condominium Units with Reservations as a Contract-Controlled Business, B.E. 2567 (2024) — establishes requirements for qualifying condominium reservations.
• Consumer Case Procedure Act B.E. 2551 (2008), as amended — governs qualifying consumer-case procedures.
• Condominium Act B.E. 2522 (1979), as amended — governs condominium registration, ownership, foreign quota and transfers.
• OCPB Consumer Protection Act and contract-control announcements — official collection of Thai consumer-protection materials.
• OCPB condominium-reservation enforcement notice — confirms continuing enforcement of the 2024 controlled-contract requirements.
• OCPB consumer services — official complaints, mediation and consumer-information channels.
• OCPB consumer-recovery example — official example concerning recovery of condominium payments following failed financing.
• Thai Civil and Commercial Code—Book II reference translation — English reference text for deposits, performance, penalties and termination.
• Professional analysis of the 2024 condominium-reservation announcement — explanatory summary of the controlled-contract requirements and refund timing.
• Thai Courts of Justice and Consumer Courts — relevant judicial authorities for contractual and consumer disputes.

Related questions

• What is a Phuket property reservation agreement?
• Is a booking fee the same as a deposit?
• Is a reservation payment part of the purchase price?
• Is there a cooling-off period for Phuket property purchases?
• Can a buyer cancel after signing a reservation form?
• Can a developer keep a reservation fee if the buyer changes their mind?
• What happens if legal due diligence fails?
• Should a reservation be subject to lawyer approval?
• Can the buyer obtain a refund if foreign quota is unavailable?
• Can a developer substitute leasehold for foreign freehold?
• Is a deposit refundable if mortgage financing is rejected?
• What should a financing condition say?
• Can the developer change the price after reservation?
• Can the developer change the unit or villa?
• What if the main sale agreement is different from the reservation?
• How long should a reservation period last?
• Can the developer sell the reserved property to somebody else?
• Is a “non-refundable” clause always enforceable?
• Must the seller return twice the deposit?
• What is the difference between earnest money and part-payment?
• Should the reservation payment be held in escrow?
• Is it safe to pay a property agent?
• Can a buyer pay a reservation fee by credit card?
• Can a buyer request a chargeback?
• How quickly must a condominium reservation fee be refunded?
• Do condominium reservation protections apply to villas?
• Can a reservation be transferred to another buyer?
• Can the payment be transferred to another unit?
• What happens if the developer becomes insolvent?
• Can a foreign buyer complain to the OCPB?
• What evidence is needed to claim a refund?
• How should a foreign buyer remit and recover reservation funds?
• What clauses should be negotiated before paying a reservation fee?

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Disclaimer

This entry provides general educational information and does not constitute legal, property, contract, consumer, banking, foreign-exchange, tax, investment or financial advice. The treatment of a reservation payment depends on the agreement, payment classification, property type, reason the transaction did not proceed, conduct of the parties and applicable Thai law. Buyers should obtain case-specific advice from a qualified independent Thai property lawyer before paying a reservation fee, cancelling a reservation, accepting forfeiture, signing a release or commencing a refund claim.