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A signed reservation agreement is not a verified purchase. Here is the order of checks that confirms a Phuket condo building can legally sell to you, is financially sound, and will deliver the title you are paying for.
By Peter Tumbas · Berkshire Hathaway HomeServices New England Properties · phuketforamericans.com
Most American buyers do their due diligence on the unit: the view, the finish, the price per square meter. The checks that decide whether the purchase works legally and financially sit at the building level, and no one in a sales office is motivated to raise them. This article covers the five building-level and title-level checks that matter, who can verify each one, and what a failed check should do to your deal. The point is to find problems before the deposit is paid, while you can still walk away. It builds on the ownership rules in Phuket for Americans' guide to ownership structure and the sequence in the step-by-step buying process.
Thailand's Condominium Act allows foreigners to hold a condominium unit in their own name, but only up to 49% of the total unit area of a single registered project. The other 51% must be Thai-owned. This is a hard limit applied at the Land Office, not a guideline, and it is measured by floor area, not by the number of units. In a US purchase, nothing comparable exists, so buyers often skip the check or assume the agent has already done it.
Ask the juristic person for a written statement of how much foreign-held area the project currently has registered. Then have your Thai lawyer confirm the figure independently. In popular buildings with heavy foreign demand, the quota fills, and the status can change between your reservation date and your transfer date. For that reason the reservation or sale contract should say what happens to your deposit if quota is unavailable at transfer. If it is silent, the risk sits with you.
If a seller or agent proposes a workaround for a full building, such as holding the unit through a Thai company or a Thai nominee, decline. Nominee structures used to circumvent ownership limits are illegal under the Foreign Business Act, and enforcement has increased since 2024.
| Check | Who Verifies It | Red Flag |
|---|---|---|
| Foreign quota | Juristic person statement, confirmed by your lawyer at the Land Office | Verbal assurance only, or a suggestion to use a Thai nominee |
| Seller and title deed | Your lawyer, from the original title deed and the seller's identity documents | Seller name differs from the deed, or only a copy is offered |
| Mortgage or encumbrance | Land Office record, checked by your lawyer | Registered mortgage the seller cannot discharge at transfer |
| Juristic person finances | Latest financial statements, budget, and sinking fund balance | No audited accounts, large owner arrears, repeated special levies |
| Building registration and approvals | Your lawyer, from permits and registration records | Developer cannot produce the construction permit or condominium registration |
| House rules and rental policy | Registered rules, requested in writing from the juristic person | Seller says "everyone rents short-term here" but the rules say otherwise |
A condominium unit is evidenced by a condominium unit title deed, the condo equivalent of the Chanote (the gold-standard Thai land title) used for land. Ask to see the original, not a photocopy. Your lawyer should confirm that the seller's name on the deed matches the seller's identity documents, that the registered unit area matches what you were shown, and that no mortgage or other encumbrance is registered against the unit.
Two further points are easy to miss. The area in the sales brochure often includes balconies or other space that the registered area does not, so price per square meter should be compared on registered area. And any parking space or storage you were promised should be confirmed as part of the title or the registered common property rights, not as an informal arrangement.
The juristic person (the legal entity that manages the condominium's common property) collects monthly common fees, holds the sinking fund, keeps the building's accounts, and enforces the house rules. It is the best single source of information about how the building is actually run, and the one buyers most often leave unread.
Request the latest financial statements, the current-year budget, the common fee schedule, the sinking fund balance, the minutes of the most recent annual general meeting, and any approved major repair plans. Look for owner arrears that are large relative to the budget, because unpaid fees from some owners are ultimately carried by the rest. A thin sinking fund in an older building raises the likelihood of a special levy, which means an unplanned cost to every owner. The seller's own unpaid fees should be cleared at transfer, and a clearance letter from the juristic person is the standard way to show that nothing is owed.
Main exposure: The seller and the building's track record.
Main exposure: The developer and the completion timeline.
A building can only offer freehold condominium units to foreigners if it is registered as a condominium under the Condominium Act. Ask your lawyer to confirm the registration, the construction permit, and, for larger projects, the environmental approval. For a resale, the key question is whether the building completed its registration cleanly, because a building with unresolved approval problems can create difficulty at the Land Office when you try to register your transfer, and again when you later try to sell.
The registered house rules set what you can do with your unit once you own it: renovation approval, pets, parking, and whether short-term rental is allowed. If rental income is part of your reason for buying, this check decides it. A building's house rules can prohibit stays under 30 days regardless of what national law permits, which is covered in detail in Is Airbnb Legal in Phuket?. Ask for the rules in writing and read them yourself, not the agent's summary.
Due diligence also covers how the funds reach Thailand. The purchase money must be transferred from abroad in foreign currency, in the buyer's name, and documented on the FET Form (Foreign Exchange Transaction Form) issued by the receiving bank. The Land Office requires this document to register a condominium transfer into a foreign buyer's name, so a missing or incorrect form can stop the transfer. Set up the transfer with your Thai bank in advance, and see Phuket for Americans' transaction cost guide for the fees that apply at registration.
Every check above is a legal verification, and each depends on who performs it. A lawyer supplied by the developer or the seller acts in that party's interest. Hire your own, and do it before the deposit is paid, not after. The deposit terms should be negotiated with the lawyer's input so that a failed quota, title, or approval check allows you to recover the money. If a check fails, the correct response is to renegotiate, wait for the issue to be cured, or walk away. Peter Tumbas is licensed in Connecticut, not Thailand, and does not act as a Thai legal representative, but he can introduce you to vetted Thai property lawyers as a referral.
Submit a private inquiry and Peter will connect you with a vetted Thai property lawyer who can run the quota, title, and juristic person checks before you commit a deposit. Referral service, no cost to the buyer, no obligation.
Submit a Private Inquiry 412-225-0598 | petertumbas@bhhsne.comHow do I check the foreign quota in a Phuket, Thailand condo before buying?
Ask the building's juristic person for a written statement of how much of the project's total unit area is already foreign-held. Foreign ownership is capped at 49% of that area, and the Land Office will not register a transfer into a foreign name that exceeds it. Have your independent Thai lawyer confirm the figure with the Land Office rather than relying on the seller's or developer's statement, and make sure quota is secured before any non-refundable deposit is paid.
What is a juristic person in a Thai condominium and why does it matter to buyers?
The juristic person is the legal entity that manages a registered condominium's common property. It collects common fees, holds the sinking fund (the reserve for major repairs), keeps the accounts, and enforces the house rules. It is the main source of due diligence information: financial statements, fee history, owner arrears, planned repairs, and rental policy. A building with weak accounts or large arrears can pass costs to owners through special levies, so review its records before you buy.
What documents should I get before paying a deposit on a Phuket, Thailand condo?
Request a written foreign quota statement, the seller's identity documents and the unit's title deed, the juristic person's latest financial statements and fee schedule, the registered house rules, and confirmation of the building's registration and approvals. For an off-plan unit, add the developer's construction permit, environmental approval where it applies, and the draft sale contract. Your independent Thai lawyer should review everything first, and the deposit terms should let you recover the money if a check fails.
Can an American buy a Phuket, Thailand condo if the foreign quota is full?
Not as freehold in your own name. Once a project reaches the 49% foreign limit, the Land Office will not register another foreign freehold transfer. Some sellers offer a registered lease of up to 30 years, which is a different and weaker legal position than ownership. Any suggestion to hold the unit through a Thai company or nominee is illegal under the Foreign Business Act. The safer response is to choose a building that still has quota available.
What is the FET Form and why do I need it to buy a Phuket, Thailand condo?
The FET Form (Foreign Exchange Transaction Form) is the bank document proving that purchase funds were brought into Thailand from abroad in foreign currency. The Land Office requires it to register a condominium transfer into a foreign buyer's name, so the transfer cannot proceed without it. Send the funds in your own name, state the purpose as a condominium purchase, and keep the bank's paperwork. Arrange this before the transfer date, since a missing form is a common cause of delay.
Do I need an independent Thai lawyer to buy a Phuket, Thailand condo?
Yes, and the lawyer should be independent of the developer, the seller, and the agent. The lawyer verifies the quota, the title, the juristic person's records, and the contract, and can attend the Land Office transfer for you under a power of attorney. Peter Tumbas is licensed in Connecticut, not Thailand, so he does not act as your Thai legal representative. Through Phuket for Americans he introduces buyers to vetted Thai property lawyers as a no-cost referral service.
Peter built phuketforamericans.com to give American buyers the building-level and legal context that developer marketing rarely discloses. He is not licensed in Thailand and is not a Thai attorney. All buyer introductions to Thai property lawyers are made as a referral service at no cost to the buyer. More about Peter
Related reading: Can Americans own property in Phuket? · Is Airbnb legal in Phuket? · Off-plan and developer risk
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