As of January 2025, Thailand has implemented new rules for condominium reservation agreements. These regulations place a stronger emphasis on consumer protection by imposing stricter obligations on developers and promoting transparency and fairness in the pre-sale process.

The Purpose of the New Reservation Regulations

The Notification Prescribing the Business of Selling Condominium Units Through Reservations as a Contract-Controlled Business was published in the Government Gazette on October 3, 2024, and came into effect on January 31, 2025.

The main goal of the notification is to prevent practices that had previously placed buyers at a disadvantage during the reservation stage. By classifying these agreements as contract-controlled business, the government has introduced a standardized framework that requires both buyers and developers to comply with clear, defined obligations.

The regulations apply to every instance in which a consumer enters into a reservation agreement with a developer for a condominium unit. This covers both in-person and online transactions, including reservations made at property exhibitions or promotional events, through real estate agents or brokers, and via developer websites or third-party platforms.

Important Components of the Standard Reservation Contract in Thailand

With the implementation of the regulation, all developers are now required to use a Standard Reservation Contract, which must be written in Thai and contain the following provisions to ensure transparency and consumer protection:

Project and Unit Details: Project name and location, reservation number, detailed unit specifications (such as its type, size, materials, and equipment), and any additional premium items or benefits provided by the developer
Timelines and Milestones: Date for signing the final sales contract, deadlines for obtaining the necessary permits and approvals, and estimated construction milestones
Financial Information and Refund Policies: Total purchase price, reservation fee amount, details of applicable promotions and discounts, acceptable payment methods (such as bank transfer, credit card, or cash), conditions under which refunds are applicable, refund processing timelines, and any deductions or penalties
Consumer Rights and Developer Obligations: Conditions for contract termination, developer duties regarding construction quality and timelines, and dispute resolution procedures and remedies in cases where the contract has been breached

Prohibited Terms in Reservation Contracts

Certain provisions are also no longer permitted in reservation agreements. These restrictions are intended to eliminate one-sided conditions and safeguard buyers from unfair treatment. The prohibited provisions include:

Limiting Developer Liability: Clauses that exempt the developer from liability for construction delays or contract breaches, and shift the responsibility of providing evidence to buyers during disputes.
Unilateral Contract Changes: Clauses that grant the developer the right to alter contract conditions (such as the terms, materials, and pricing) without the buyer’s approval, and alter the project’s specifications after the reservation has been finalized.
Unfair Contract Termination: Clauses that allow the developer to terminate the contract without proper notice, and automatic forfeiture of payments for minor breaches by the buyer.
Misuse of Reservation Fees: Clauses that allow the developer to use the reservation fees for purposes other than securing the unit, and treating the reservation fee as a security deposit or down payment.
Data Protection Violations: Clauses that allow the developer to collect, compile, use, and disclose the buyer’s personal data with third parties without the buyer’s consent, and retain the personal data beyond the necessary period.
Exploitation of Common Property: Clauses that grant the developer exclusive access to shared facilities and charge the buyer for access to standard amenities.

Consumer Protections from Condominium Reservation Regulations

The new regulations strengthen consumer protections during the reservation stage. Buyers may terminate contracts if developers fail to obtain the necessary permits, make unauthorized changes to project specifications or materials, or breach contract terms. In such cases, they can claim full refunds when developers do not comply with agreed terms, or pro-rated refunds if the buyers terminate at certain project stages, with repayment timelines clearly defined.

As mentioned earlier, transparency is also reinforced under the new framework. Buyers must be given a copy of the reservation contract in Thai, along with detailed project specifications, floor plans, and updates on any changes or construction delays. These measures give consumers access to reliable information before they commit to a purchase. The regulations further protect buyers by prohibiting unfair practices that were common in the past, such as arbitrary price increases, undisclosed charges, and pressure tactics aimed at forcing quick decisions.

Obligations of Developers and Penalties for Non-Compliance

On the other hand, developers are required to meet higher standards of accountability. They must prepare two identical copies of the reservation contract in Thai (with one copy given to the buyer), present accurate and complete project details, and obtain all the necessary permits before proceeding with construction.

Reservation fees must also be used exclusively to secure the unit and must be supported by receipts for each payment. For refunds, developers are required to process them within the specified period: 15 days for bank transfers and 45 days for credit card payments. Failure to comply with the new regulations will result in serious consequences, such as public disclosure in official registers, suspension or termination of their licenses, and financial penalties of up to 200,000 Thai baht and/or imprisonment of not more than one year.

How the New Regulations Protect Off-Plan Condominium Buyers

By regulating condominium reservation agreements as contract-controlled business, Thailand is raising the level of protection for individuals purchasing off-plan condominiums. Buyers now benefit from defined rights, better access to reliable project information, and stronger remedies if developers fail to meet their obligations.

These changes create a more transparent and balanced reservation process, giving consumers greater confidence when securing a property during the pre-sale stage.

Thailand’s New Reservation Regulations for Condominiums in 2025