Essential Tips to Avoid Property Scams in Thailand
August 31, 2021 - Reading time: 7 minutes
Updated: April 10, 2025
Thailand has long been a popular destination for foreign investors looking to purchase property. However, with the appeal of a tropical paradise also comes the risk of property scams. Understanding local laws, potential pitfalls, and the tricks used by scammers can help you avoid costly mistakes when buying property in Thailand.
At Bangkok Investigators, we’re focused on helping foreign nationals protect themselves while navigating the Thai property market. While we don’t offer property buying services directly, we do provide important support like background checks and surveillance, which can help you make smarter, safer decisions about who you’re dealing with.
1. Do Your Due Diligence
Before buying any property in Thailand, proper due diligence is a must. This includes confirming ownership, checking land titles and land use rights, and making sure there are no legal issues attached to the property. If you're unsure about any part of the process, hiring a lawyer who specialises in Thai property law is highly recommended. You should also check the developer’s background and the property’s legal status — this is where our background check services come in. We can help verify that the individuals or companies involved are legitimate and above board.
2. Beware of Off-Plan Property Purchases
Buying property off-plan — before construction is complete — is common in Thailand, but carries risk. Many developments have stalled, changed hands, or been abandoned entirely. If you're looking at an off-plan project, be cautious and research thoroughly. Contact us to run background checks on the developer or construction firm. We can look into their reputation, funding history, and whether proper permits are in place to legally proceed with the build.
Photo: The infamous Waterfront Suites condominium in Pattaya has remained derelict for over six years after construction was halted due to violations of approved building designs. It’s just one of many unfinished projects across the area — a reminder of the risks involved in off-plan investments.
3. Always Use a Lawyer
Thai property law can be complex, especially for foreigners. It’s important to hire your own lawyer — not one recommended by a seller or developer — to avoid conflicts of interest. A good lawyer will protect your interests and guide you through any potential legal issues. We also suggest running a background check on the lawyer to ensure they’re properly qualified and have a good track record.
4. Avoid “Nominee” Ownership Schemes
Foreigners are generally not allowed to own land outright in Thailand. Some people try to get around this by setting up companies with Thai “nominees” as shareholders. This is risky and can be considered illegal if the structure is set up purely to hold land. If discovered, it can lead to the property being seized. We strongly advise against this and recommend legal alternatives like long-term leases or buying a condo unit, which is legally permitted under Thai law.
5. Watch Out for “Guaranteed Returns”
Be cautious of developers who promise guaranteed rental returns. While it sounds attractive, it’s often a red flag. These guarantees may be unsustainable or outright fabricated. Always ask who is backing the guarantee and whether there is legal documentation to support it. If in doubt, we can investigate the company’s financials and history to help you assess the risk.
6. Verify the Property’s Utilities and Management
Some developers retain control over key utilities or common areas to generate extra income. It’s important to check if you'll have proper control over water, electricity, and maintenance services. Review all contracts carefully and, if possible, speak with current owners or tenants to hear about their experience with the management.
7. Understand the Local Area and Infrastructure
Before buying, visit the property at different times of day and in different weather conditions. Does the area flood during heavy rain? Are there construction projects nearby that might affect your quality of life? Talking to locals can give you insights you won’t find in brochures. It’s also worth checking with local authorities to see if future developments could impact your property’s value.
Photo: Thailand experiences significant rainfall during the wet season. Be sure to investigate how well the infrastructure in your chosen area handles flooding and drainage.
8. Always Get a Receipt for Deposits
If you’re paying a deposit, get a proper signed receipt or contract. It should clearly state the amount paid, what it’s for, and any conditions attached. Taking photos of the transaction and the person receiving the payment can also help protect you. Unfortunately, it’s not uncommon for sellers to vanish or deny payments once they’ve been made — so protect yourself with documentation.
9. Speak with the Local Community
Talking to people who already live in the area can be one of your most valuable sources of information. Locals often know about past issues with developers, neighbours, infrastructure problems, or disputes. Their insight could reveal things that no agent or brochure ever would.
10. Consider Using Our Background Check Services
While we don’t offer real estate services, we can assist with detailed background checks on any individual or company involved in your transaction. Whether it’s a real estate agent, developer, or contractor, we can help ensure you're dealing with honest and reliable people. We also offer surveillance services if you suspect shady activity or want to monitor someone discreetly.
Conclusion
Buying property in Thailand can be a great investment — but only if you take the right precautions. Scams are out there, but with the right approach and thorough background checks, you can make confident and informed decisions. If you're considering a purchase, we recommend verifying every detail before signing anything.
Also, be sure to check out our related article on a recent legal change that could affect your investment plans: Thailand Bans 90-Year Property Leases – What Expats Must Know. It’s an important read for any foreigner thinking about long-term property arrangements in Thailand.
For more information about the services we offer, visit our homepage at Bangkok Investigators.
Related Articles
Search
Bangkok Investigators
Discover more about Bangkok Private Investigators on our homepage or by visiting our About Us page.