Essential Tips to Avoid Property Scams in Thailand
August 31, 2021 - Reading time: 8 minutes
Updated: March 3, 2025
Thailand has long been a popular destination for foreign investors looking to purchase property. However, with the allure of a tropical paradise also comes the risk of property scams. Understanding the local laws, the potential pitfalls, and the methods used by scammers can help you avoid making costly mistakes when buying property in Thailand.
At Bangkok Investigators, we are committed to helping foreign nationals protect themselves in Thailand. While we don't directly facilitate property purchases, we offer vital services such as background checks and surveillance to help you make informed decisions about your property investments and the people you might work with during the process.
1. Do Your Due Diligence
Before purchasing any property in Thailand, it is crucial to do thorough due diligence. This means checking ownership titles, land use rights, and making sure there are no legal disputes over the property. If you are unsure, hiring a professional lawyer specialising in Thai property law is essential. Due diligence can also include checking the developer's track record and the property's legal status, which is where our background check services can assist you. We can verify the legitimacy of developers or agents you may be dealing with, ensuring that you aren't dealing with fraudulent parties.
2. Beware of Off-Plan Property Purchases
Purchasing a property before it is built, known as "off-plan," is popular but can be risky. Many developments in Thailand have stalled or never materialised, leaving investors with significant losses. If you are considering an off-plan property, be cautious and do extensive research. We recommend contacting us to carry out background checks on the developer or construction company to ensure their reputation is solid. In addition, verify if the project has the proper permits and funding to proceed.
Photo: The infamous Waterfront Suites condominium building at Bali Hai Pier in Pattaya has remained unfinished and derelict for over 6 years, after city officials halted construction citing allegations that the building differed from previously approved construction designs. The building is one of numerous unfinished projects which can be found in the Pattaya area. The building stands in a prominent position besides the large "Pattaya city" sign which is embedded in the hillside.
3. Always Use a Lawyer
In Thailand, property transactions can be complicated, especially for foreigners. A lawyer who understands local laws and practices is vital to ensure your property purchase goes smoothly. Avoid dealing with lawyers who are recommended by the property sellers or developers, as they may have conflicts of interest. A good lawyer can protect your interests and help you avoid legal pitfalls. We also recommend verifying the lawyer’s background and history of successful cases.
4. Avoid “Nominee” Ownership Schemes
Foreigners are generally not allowed to own land in Thailand, and some may attempt to bypass this by setting up a holding company with Thai nationals as shareholders. While this may seem like a legitimate way around the law, it is risky and illegal if structured purely for property ownership. Engaging in such activities could lead to the revocation of your property rights, leaving you vulnerable. We highly advise against it and recommend alternative legal options such as long-term leases or purchasing property within a condo, which is more favourable for foreign ownership.
5. Watch Out for “Guaranteed Returns”
Some property developers offer "guaranteed returns" on your investment, which may sound tempting, but is often a sign of a scam. Developers who promise high, risk-free returns on property investments are often untrustworthy. Always ask for details about the guarantee and check who is underwriting it. Be sceptical of deals that sound too good to be true. If you are unsure, our background checks can help determine if the developer has a reliable history and whether such returns are realistic.
6. Verify the Property’s Utilities and Management
Some developers may attempt to control utilities like water, electricity, or common areas to increase their profits. It’s crucial to ensure that you will have full control over the utilities and that the management structure of the property is clear and transparent. We recommend carefully reviewing the developer’s agreements and speaking with current owners or tenants about their experiences.
7. Understand the Local Area and Infrastructure
Before committing to a property purchase, take the time to visit the area during different times of day and in different weather conditions. For instance, does the area flood during heavy rains, or are there major infrastructure projects that may disrupt your lifestyle? Additionally, speaking with locals can give you valuable insights into the area and any ongoing or potential problems. You may also want to check with local authorities to ensure that no new developments could affect your property’s value or living conditions.
Photo: Thailand tends to experience a lot of rainfall during the wet season. Make sure that the infrastructure in your area is capable of adequately dispersing the water.
8. Always Get a Receipt for Deposits
If you need to make a deposit on a property, ensure that you receive a proper receipt or a signed contract. This documentation should clearly state the terms of your deposit and any conditions attached. Additionally, it would be wise to take photos of the vendor as they receive your deposit. Remember that it is not uncommon for sellers to disappear or refuse to return deposits once paid, so make sure you protect yourself with legally binding paperwork.
9. Speak with the Local Community
Engaging with the local community is essential when considering a property purchase. Locals can often provide information about past issues with the property, the developer, or the area. They may also know of any impending developments that could affect your property value or living conditions. Be open to hearing their opinions, as they might offer invaluable insights you can’t find online.
10. Consider Using Our Background Check Services
While we don’t offer property services, we can help you with comprehensive background checks on anyone involved in your property transaction, including real estate agents, developers, and even contractors. Our services are designed to ensure that you are dealing with trustworthy and reputable individuals. We also offer surveillance services to help monitor the situation if you suspect any fraudulent behaviour or misconduct.
Conclusion
Buying property in Thailand can be a rewarding investment, but it requires vigilance and caution. By following these tips and using our services to ensure due diligence, you can protect yourself from property scams and avoid costly mistakes. If you're considering purchasing property in Thailand, we strongly recommend researching and verifying every aspect of the transaction to ensure you're making a sound investment.
For more information on how we can assist you with background checks or surveillance, visit Bangkok Investigators today.
Related articles
Search
Bangkok Investigators
Discover more about Bangkok Private Investigators on our homepage or by visiting our About Us page.