Off-Plan Condos in Thailand: Delays, Defects and Your Refund Rights

Reviewed by Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556, for ThaiLawOnline, a Thai law firm acting for foreigners since 2006.

You bought an off-plan condo in Thailand two years ago. The brochure promised a rooftop pool and handover last March. Today the site is a concrete shell, the sales office won’t return calls, and your money is sitting in the developer’s account. Not in escrow. Not protected. Just gone, unless you act.

We’ve handled these cases for 20 years, and here’s the good news most buyers never hear: Thai law is unusually kind to condo purchasers. Your contract is backed by a mandatory government form. Delay penalties accrue daily. You can sue as a consumer, without court fees, and claim your money back with interest.

This guide covers what most articles skip. The exact statutes. The Supreme Court decisions. The step-by-step lawsuit process, realistic timelines, and what happens when the developer goes broke.

Why Off-Plan Condo Purchases in Thailand Go Wrong

Off-plan means you pay for a promise. A reservation fee books the unit. A contract deposit follows, usually 10% to 20% of the price. Then monthly installments run through construction, with the balance due at transfer.

Your money funds the construction

Understanding Your Off-Plan Condo in Thailand

Here’s the structural problem. Thai developers typically use buyer payments to build the project. Your installments go straight into the developer’s own bank account. If sales slow down or financing collapses, construction stalls. Your money is already spent.

We’ve seen this pattern in Pattaya, Phuket and Bangkok for twenty years. The project that “pauses for redesign” rarely restarts on its own. Buyers who move early recover far more than buyers who wait politely.

Escrow exists but almost nobody uses it

Thailand has an escrow law: the Escrow Act B.E. 2551 (2008). It lets a licensed escrow agent, usually a bank, hold your payments until the developer delivers. Funds held this way stay in an account the escrow agent holds for both parties, so they are not in the developer’s hands, and section 25 of the Act protects them even if the escrow agent itself is sued or goes bankrupt.

The catch? Escrow is voluntary. Developers prefer direct payment because they need your cash to build. In our experience, genuine escrow arrangements appear in only a small fraction of off-plan sales. If a developer agrees to escrow, that alone says something about their financial health.

Your Contract Is Stronger Than You Think: Section 6/2 of the Condominium Act

Most buyers assume they’re stuck with whatever the developer’s lawyers drafted. Not in Thailand. Since the 2008 amendment, Section 6/2 of the Condominium Act B.E. 2522 (1979) requires every developer’s sale contract to follow a standard form the Minister of Interior prescribes by notification (form Or.Chor. 22, compulsory since 4 July 2008).

Any clause that deviates from the standard form and favors the developer is unenforceable. The court simply ignores it. Think of it like a consumer bill of rights baked into your contract, whether the developer typed it in or not.

What the standard form guarantees you

The prescribed terms include real teeth. The developer must complete and transfer the unit by the contractual date. If the unit is not transferred by that date, clause 7.3 of the form gives you a choice: terminate at once and take back everything you paid, with interest at the same rate the developer set for charging you on late payments (clause 7.3.1, a rate the form caps at 15% a year), or keep the contract and collect a daily penalty of at least 0.01% of the price, capped at 10% (clause 7.3.2). Once the penalty reaches 10% and the developer still cannot perform, you may terminate then.

The form also makes the developer responsible for its own income tax, specific business tax and stamp duty at transfer, while the registration fee is split equally (clause 6). And you can assign your rights to another buyer without paying the developer an assignment fee.

The brochure is part of the contract

Section 6/1 of the Condominium Act goes further. Advertising materials, brochures and show-room promises form part of the sale contract. Where the brochure and the contract conflict, the version more favorable to you prevails. That “infinity pool and 2,000 sqm garden” in the glossy render isn’t marketing fluff. It’s an enforceable term. The Supreme Court applied exactly this in Dika 5352/2553: a developer advertised a large shopping centre next to the building and a large pool on the car park roof, built neither, and argued that none of it appeared in the contract. The court held the advertising leaflet and scale model were part of the sale and purchase agreement, and the developer was bound by them. See six Supreme Court decisions every condo buyer should know.

Practical tip: Keep every brochure, screenshot, LINE chat and email from the sales team. In our practice, advertising evidence has repeatedly turned a weak delay case into a strong one, especially where facilities were downgraded or never built.

The law behind this page

English

Section 6/2 Condominium Act B.E. 2522

Full text

A contract to sell or a contract of sale of a condominium unit between the owner of the land and building under section 6 and the prospective buyer or buyer of the condominium unit shall be made in the form of contract prescribed by the Minister by notification. Any part of a contract to sell or contract of sale of a condominium unit under paragraph one that is not made in the form of contract prescribed by the Minister by notification and is not favourable to the prospective buyer or buyer of the condominium unit shall have no effect.

ThaiLawOnline translation

Official text

Section 6/1 Condominium Act B.E. 2522

Full text

Where the owner of the land and building under section 6 advertises the sale of condominium units in a condominium, the owner shall keep copies of the text or images advertised, or of the prospectus distributed to the general public, in whatever form, at its place of business until all the condominium units have been sold, and shall send at least one set of copies of such documents to the juristic person of the condominium for safekeeping. In advertising the sale of condominium units in a condominium, as regards the evidence and particulars prescribed in section 6, the text or images advertised shall correspond to the evidence and particulars submitted with the application for registration, and shall clearly specify the particulars of the common property other than that provided in section 15. The text or images advertised, or the prospectus, shall be deemed to form part of the contract to sell or the contract of sale of the condominium unit, as the case may be. If any text or image has a meaning that conflicts or is inconsistent with the text of the contract to sell or the contract of sale of the condominium unit, it shall be interpreted in favour of the prospective buyer or buyer of the condominium unit.

ThaiLawOnline translation

Official text

Section 391

Where a party exercises a right of rescission, each party must restore the other to their former position, but the rights of third persons cannot be impaired. Money to be repaid carries interest from the day it was received. Where what was received was services rendered, or the use of a thing, restitution is made by paying its value, or the counter-payment in money if the contract fixed one. Rescission does not affect a claim for damages.

Full text

When one party has exercised his right of rescission, each party is bound to restore the other to his former position; but the rights of third persons may not be impaired. Money to be repaid in the case mentioned in the first paragraph shall bear interest from the time it was received. Services rendered and the use of property permitted shall be compensated by payment of their reasonable value, or, where the contract provides for payment in return, by payment as so provided. The exercise of the right of rescission does not affect a claim for damages.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 387

Where one party fails to perform, the other may fix a reasonable period for performance and give notice. If performance is not made within that period, the non-defaulting party may rescind the contract.

Full text

Where one party to a contract fails to perform, the other party may set a reasonable time and give notice requiring that party to perform within it. If that party does not perform within the time so set, the other party may rescind the contract.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 378

Full text

Unless otherwise agreed, earnest shall be dealt with as follows: (1) it shall be returned, or applied as part payment, upon performance; (2) it shall be forfeited if the party who gave the earnest fails to perform, or if performance becomes impossible owing to a circumstance for which that party is responsible, or if the contract is rescinded through the fault of that party; (3) it shall be returned if the party who received the earnest fails to perform, or if performance becomes impossible owing to a circumstance for which that party is responsible.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 466

Full text

In a sale of immovable property, if the total area has been specified and the seller delivers less or more than was agreed, the buyer may, at his option, reject it or accept it and pay for it proportionately. If the shortage or excess does not exceed five per cent of the total area specified, the buyer is bound to accept it and pay proportionately; but the buyer may rescind the contract if the shortage or excess is so great that, had he known of it beforehand, he would not have entered into the contract.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 474

Full text

No action for liability in respect of a defect may be brought after one year from the time the defect was discovered.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 42 Consumer Case Procedure Act B.E. 2551

Full text

If the act complained of was committed by the business operator with intent to take unfair advantage of the consumer, or with intent to cause damage to the consumer, or with gross negligence disregarding the damage that would be caused to the consumer, or in breach of the responsibility of a person in a profession or business which is ordinarily trusted by the public, then when the court gives judgment ordering the business operator to compensate the consumer, the court shall have power to order the business operator to pay punitive damages in addition to the amount of actual damages determined by the court, as it considers appropriate, having regard to the circumstances, such as the damage suffered by the consumer, the benefits obtained by the business operator, the financial status of the business operator, the business operator's mitigation of the damage caused, and the consumer's contribution to causing the damage. In determining punitive damages under paragraph one, the court shall have power to award not more than twice the actual damages determined by the court; but if the actual damages determined by the court do not exceed fifty thousand baht, the court shall have power to award punitive damages of not more than five times the actual damages determined by the court.

ThaiLawOnline translation

Official text

ไทย

มาตรา 6/2 พระราชบัญญัติอาคารชุด พ.ศ. 2522

ข้อความเต็ม

สัญญาจะซื้อจะขายหรือสัญญาซื้อขายห้องชุดระหว่างผู้มีกรรมสิทธิ์ในที่ดินและอาคารตามมาตรา ๖ กับผู้จะซื้อหรือผู้ซื้อห้องชุดต้องทำตามแบบสัญญาที่รัฐมนตรีประกาศกำหนด สัญญาจะซื้อจะขายหรือสัญญาซื้อขายห้องชุดตามวรรคหนึ่งส่วนใด มิได้ทำตามแบบสัญญาที่รัฐมนตรีประกาศกำหนดและไม่เป็นคุณต่อผู้จะซื้อหรือผู้ซื้อห้องชุด สัญญาส่วนนั้นไม่มีผลใช้บังคับ

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

ข้อความทางการ

มาตรา 6/1 พระราชบัญญัติอาคารชุด พ.ศ. 2522

ข้อความเต็ม

ในกรณีที่ผู้มีกรรมสิทธิ์ในที่ดินและอาคารตามมาตรา ๖ ทำการโฆษณาขายห้องชุดในอาคารชุด ต้องเก็บสำเนาข้อความหรือภาพที่โฆษณา หรือหนังสือชักชวนที่นำออกโฆษณาแก่บุคคลทั่วไปไม่ว่าจะทำในรูปแบบใดไว้ในสถานที่ทำการจนกว่าจะมีการขายห้องชุดหมด และต้องส่งสำเนาเอกสารดังกล่าวให้นิติบุคคลอาคารชุดจัดเก็บไว้อย่างน้อยหนึ่งชุด การโฆษณาขายห้องชุดในอาคารชุดในส่วนที่เกี่ยวกับหลักฐานและรายละเอียดที่กำหนดไว้ในมาตรา ๖ ข้อความหรือภาพที่โฆษณาจะต้องตรงกับหลักฐานและรายละเอียดที่ยื่นพร้อมคำขอจดทะเบียน และต้องระบุรายละเอียดเกี่ยวกับทรัพย์ส่วนกลางนอกจากที่บัญญัติไว้ในมาตรา ๑๕ ให้ชัดเจน ให้ถือว่าข้อความหรือภาพที่โฆษณา หรือหนังสือชักชวนเป็นส่วนหนึ่งของสัญญาจะซื้อจะขายหรือสัญญาซื้อขายห้องชุด แล้วแต่กรณี หากข้อความหรือภาพใดมีความหมายขัดหรือแย้งกับข้อความในสัญญาจะซื้อจะขายหรือสัญญาซื้อขายห้องชุด ให้ตีความไปในทางที่เป็นคุณแก่ผู้จะซื้อหรือผู้ซื้อห้องชุด

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

ข้อความทางการ

มาตรา 391

ข้อความเต็ม

เมื่อคู่สัญญาฝ่ายหนึ่งได้ใช้สิทธิเลิกสัญญาแล้ว คู่สัญญาแต่ละฝ่ายจำต้องให้อีกฝ่ายหนึ่งได้กลับคืนสู่ฐานะดังที่เป็นอยู่เดิม แต่ทั้งนี้จะให้เป็นที่เสื่อมเสียแก่สิทธิของบุคคลภายนอกหาได้ไม่ส่วนเงินอันจะต้องใช้คืนในกรณีดังกล่าวมาในวรรคต้นนั้น ท่านให้บวกดอกเบี้ยเข้าด้วย คิดตั้งแต่เวลาที่ได้รับไว้ส่วนที่เป็นการงานอันได้กระทำให้และเป็นการยอมให้ใช้ทรัพย์นั้น การที่จะชดใช้คืน ท่านให้ทำได้ด้วยใช้เงินตามควรค่าแห่งการนั้น ๆ หรือถ้าในสัญญามีกำหนดว่าให้ใช้เงินตอบแทน ก็ให้ใช้ตามนั้นการใช้สิทธิเลิกสัญญานั้นหากระทบกระทั่งถึงสิทธิเรียกร้องค่าเสียหายไม่

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 387

ข้อความเต็ม

ถ้าคู่สัญญาฝ่ายหนึ่งไม่ชำระหนี้ อีกฝ่ายหนึ่งจะกำหนดระยะเวลาพอสมควร แล้วบอกกล่าวให้ฝ่ายนั้นชำระหนี้ภายในระยะเวลานั้นก็ได้ ถ้าและฝ่ายนั้นไม่ชำระหนี้ภายในระยะเวลาที่กำหนดให้ไซร้ อีกฝ่ายหนึ่งจะเลิกสัญญาเสียก็ได้

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 378

ข้อความเต็ม

มัดจำนั้น ถ้ามิได้ตกลงกันไว้เป็นอย่างอื่น ท่านให้เป็นไปดังจะกล่าวต่อไปนี้ คือ(๑) ให้ส่งคืน หรือจัดเอาเป็นการใช้เงินบางส่วนในเมื่อชำระหนี้(๒) ให้ริบ ถ้าฝ่ายที่วางมัดจำละเลยไม่ชำระหนี้ หรือการชำระหนี้ตกเป็นพ้นวิสัยเพราะพฤติการณ์อันใดอันหนึ่งซึ่งฝ่ายนั้นต้องรับผิดชอบ หรือถ้ามีการเลิกสัญญาเพราะความผิดของฝ่ายนั้น(๓) ให้ส่งคืน ถ้าฝ่ายที่รับมัดจำละเลยไม่ชำระหนี้ หรือการชำระหนี้ตกเป็นพ้นวิสัยเพราะพฤติการณ์อันใดอันหนึ่งซึ่งฝ่ายนี้ต้องรับผิดชอบ

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 466

ข้อความเต็ม

ในการซื้อขายอสังหาริมทรัพย์นั้น หากว่าได้ระบุจำนวนเนื้อที่ทั้งหมดไว้ และผู้ขายส่งมอบทรัพย์สินน้อยหรือมากไปกว่าที่ได้สัญญาไซร้ ท่านว่าผู้ซื้อจะปัดเสีย หรือจะรับเอาไว้และใช้ราคาตามส่วนก็ได้ ตามแต่จะเลือกอนึ่ง ถ้าขาดตกบกพร่องหรือล้ำจำนวนไม่เกินกว่าร้อยละห้าแห่งเนื้อที่ทั้งหมดอันได้ระบุไว้นั้นไซร้ ท่านว่าผู้ซื้อจำต้องรับเอาและใช้ราคาตามส่วน แต่ว่าผู้ซื้ออาจจะเลิกสัญญาเสียได้ในเมื่อขาดตกบกพร่องหรือล้ำจำนวนถึงขนาดซึ่งหากผู้ซื้อได้ทราบก่อนแล้วคงจะมิได้เข้าทำสัญญานั้น

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 474

ข้อความเต็ม

ในข้อรับผิดเพื่อชำรุดบกพร่องนั้น ท่านห้ามมิให้ฟ้องคดีเมื่อพ้นเวลาปีหนึ่งนับแต่เวลาที่ได้พบเห็นความชำรุดบกพร่อง

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 42 พระราชบัญญัติวิธีพิจารณาคดีผู้บริโภค พ.ศ. 2551

ข้อความเต็ม

ถ้าการกระทำที่ถูกฟ้องร้องเกิดจากการที่ผู้ประกอบธุรกิจกระทำโดยเจตนาเอาเปรียบผู้บริโภคโดยไม่เป็นธรรมหรือจงใจให้ผู้บริโภคได้รับความเสียหายหรือประมาทเลินเล่ออย่างร้ายแรงไม่นำพาต่อความเสียหายที่จะเกิดแก่ผู้บริโภคหรือกระทำการอันเป็นการฝ่าฝืนต่อความรับผิดชอบในฐานะผู้มีอาชีพหรือธุรกิจอันย่อมเป็นที่ไว้วางใจของประชาชน เมื่อศาลมีคำพิพากษาให้ผู้ประกอบธุรกิจชดใช้ค่าเสียหายแก่ผู้บริโภค ให้ศาลมีอำนาจสั่งให้ผู้ประกอบธุรกิจจ่ายค่าเสียหายเพื่อการลงโทษเพิ่มขึ้นจากจำนวนค่าเสียหายที่แท้จริงที่ศาลกำหนดได้ตามที่เห็นสมควร ทั้งนี้ โดยคำนึงถึงพฤติการณ์ต่าง ๆ เช่น ความเสียหายที่ผู้บริโภคได้รับ ผลประโยชน์ที่ผู้ประกอบธุรกิจได้รับ สถานะทางการเงินของผู้ประกอบธุรกิจ การที่ผู้ประกอบธุรกิจได้บรรเทาความเสียหายที่เกิดขึ้น ตลอดจนการที่ผู้บริโภคมีส่วนในการก่อให้เกิดความเสียหายด้วย การกำหนดค่าเสียหายเพื่อการลงโทษตามวรรคหนึ่ง ให้ศาลมีอำนาจกำหนดได้ไม่เกินสองเท่าของค่าเสียหายที่แท้จริงที่ศาลกำหนด แต่ถ้าค่าเสียหายที่แท้จริงที่ศาลกำหนดมีจำนวนเงินไม่เกินห้าหมื่นบาท ให้ศาลมีอำนาจกำหนดค่าเสียหายเพื่อการลงโทษได้ไม่เกินห้าเท่าของค่าเสียหายที่แท้จริงที่ศาลกำหนด

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

ข้อความทางการ

Français

Article 6/2 Condominium Act B.E. 2522

La promesse de vente ou le contrat de vente d'un lot de copropriété conclu entre le propriétaire du terrain et de l'immeuble visé à l'article 6 et le promettant acquéreur ou l'acquéreur doit suivre le modèle de contrat fixé par arrêté du ministre. Toute partie du contrat qui ne suit pas ce modèle et n'est pas favorable au promettant acquéreur ou à l'acquéreur est sans effet.

résumé non officiel

Texte officiel

Article 6/1 Condominium Act B.E. 2522

Le propriétaire visé à l'article 6 qui annonce la vente de lots conserve dans ses locaux, jusqu'à la vente du dernier lot, copie des textes, images ou prospectus diffusés, sous toute forme, et en remet au moins un exemplaire à la personne morale de la copropriété. Pour les éléments de l'article 6, la publicité doit concorder avec le dossier d'enregistrement et préciser les parties communes autres que celles de l'article 15. Elle est réputée faire partie de la promesse de vente ou du contrat de vente; en cas de contradiction, elle s'interprète en faveur du promettant acquéreur ou de l'acquéreur.

résumé non officiel

Texte officiel

Article 391

Lorsqu'une partie a exercé son droit de résolution, chaque partie doit remettre l'autre dans son état antérieur, sans préjudice des droits des tiers. Les sommes à restituer portent intérêt à compter de leur réception. Les services fournis et l'usage d'une chose sont restitués par le paiement de leur juste valeur ou, si le contrat prévoit une contrepartie en argent, selon ce montant. L'exercice du droit de résolution n'affecte pas le droit de réclamer des dommages-intérêts.

résumé non officiel

Notre article annotéTexte officiel

Article 387

Si une partie n'exécute pas son obligation, l'autre peut lui fixer un délai raisonnable et la mettre en demeure d'exécuter dans ce délai; si l'exécution n'intervient pas dans le délai fixé, elle peut résoudre le contrat.

résumé non officiel

Notre article annotéTexte officiel

Article 378

Sauf convention contraire, les arrhes sont (1) restituées ou imputées sur le paiement à l'exécution, (2) perdues en cas d'inexécution du versant, d'impossibilité due à une circonstance dont il répond, ou de résolution par sa faute, (3) restituées en cas d'inexécution du bénéficiaire ou de pareille impossibilité dont il répond.

résumé non officiel

Notre article annotéTexte officiel

Article 466

Dans la vente d'un immeuble dont la superficie totale est indiquée, si le vendeur livre une superficie inférieure ou supérieure, l'acheteur peut, à son choix, refuser ou accepter en payant au prorata. Si le déficit ou l'excédent ne dépasse pas cinq pour cent de la superficie indiquée, l'acheteur doit accepter et payer au prorata, mais il peut résoudre le contrat lorsque l'écart est tel qu'il n'aurait pas contracté s'il l'avait connu.

résumé non officiel

Notre article annotéTexte officiel

Article 474

L'action en garantie des vices est irrecevable après l'expiration d'un délai d'un an à compter de la découverte du vice.

résumé non officiel

Notre article annotéTexte officiel

Article 42 Consumer Case Procedure Act B.E. 2551

Le tribunal condamnant le professionnel peut ajouter des dommages punitifs en cas d'exploitation déloyale, intention de nuire, négligence grave ou manquement à la confiance professionnelle, selon préjudice, profit, situation financière, atténuation et faute du consommateur. Plafond: deux fois les dommages réels, cinq fois s'ils n'excèdent pas 50 000 bahts.

résumé non officiel

Texte officiel

Supreme Court decisions

• 2588/2564 (2021): Default Interest Steps Down to 5% from 11 April 2564

Sources

• Condominium Act B.E. 2522, retrieved 4 November 2026
• Civil and Commercial Code, Office of the Council of State, retrieved 31 October 2026
• Consumer Case Procedure Act B.E. 2551, retrieved 3 November 2026
• deka.supremecourt.or.th, Supreme Court of Thailand decisions database (copy held in our library), retrieved 19 February 2026

Late Handover: Penalties, Termination and Interest

Delay is the most common off-plan complaint we see. Thai law gives you two paths, and choosing correctly matters.

Path one: wait and collect the daily penalty

If you still want the unit, keep the contract alive. The delay penalty accrues at no less than 0.01% of the purchase price per day. On a THB 5,000,000 condo, that’s THB 500 per day, about THB 15,000 per month. The cap is 10% of the price, THB 500,000 in this example.

Send a written notice reserving your penalty claim. Silence can be read as waiver. Where both sides simply let the completion date pass without acting on it, that date stops being of the essence, and the shortcut in CCC Section 388, which lets you rescind without any notice where time is essential, closes. You are then back on Section 387: fix a fresh reasonable period, notify the developer in writing to perform within it, and only rescind if it does not.

Path two: terminate and demand your money back

If the project is clearly failing, terminate. Under Sections 386 to 391 of the Civil and Commercial Code (CCC), termination for the developer’s breach restores both parties to their original positions. The developer must refund every baht you paid, with interest from the date it received each payment.

Thai courts back this up consistently. In Supreme Court Decision No. 6474/2541 (1998), the developer stopped building for more than a year while the buyer kept paying instalments. The Court held the developer in breach of a reciprocal contract, so the buyer could terminate, and the order to refund the 755,056 baht paid, with interest, stood. In Decision No. 1188/2549 (2006), the completion date had passed and the building was still unfinished when the buyer terminated; the Court held the buyer did not first have to give the developer a further period to perform, because it could not have performed anyway.

No completion date in the contract? You’re still protected

Some older or non-compliant contracts omit a completion date. Developers argue they can finish “when ready”. The Supreme Court disagrees. Decision No. 277/2553 (2010) holds that the developer must start and finish within a reasonable time, applying the good-faith principles of CCC Sections 203 and 368.

And if the developer has fallen behind, you can lawfully suspend your own installments. Decision No. 6746/2547 (2004) confirms this under CCC Section 369, the rule on reciprocal contracts. A defaulting developer can’t declare you in breach for withholding payments while it isn’t ready to perform itself.

Delay, Defect and Refund Rights at a Glance

Problem	Your right	Legal basis	Key numbers
Handover later than contract date	Daily penalty while you wait, or terminate and refund	Standard form under Condominium Act s.6/2; CCC s.391	Penalty at least 0.01%/day, capped at 10% of price
Construction abandoned or hopeless	Immediate termination, full refund plus interest	CCC s.386 to 391; Dika No. 6474/2541, 1188/2549	Interest on the refund 3% per year since 11 April 2021 (7.5% in older cases)
Structural defects after transfer	Repair or damages from developer	Standard form warranty; CCC s.472	5-year warranty from registration of the condominium
Defects in other components	Repair or damages from developer	Standard form warranty; CCC s.472	2-year warranty; sue within 1 year of discovery (CCC s.474)
Unit area differs from contract	Reject the unit, or accept with price adjustment	CCC s.466	Over 5% difference: right to reject
Project halted by force majeure	Refund of all payments with interest	Standard form under s.6/2	Interest at Krung Thai Bank’s highest fixed deposit rate

Construction Defects and Area Shortfalls

Not every off-plan disaster is a delay. Plenty of projects finish on time and hand over badly built units. Cracked walls, leaking bathrooms, missing fittings, a floor plan that shrank between brochure and transfer.

Two warranty periods, counted from registration of the condominium

The standard contract form makes the developer liable for defects in the structure and the fixed building equipment for at least 5 years, and for other component parts for at least 2 years (clause 8.1). Both periods run from the date the condominium itself is registered, not from the transfer of your unit, so a late transfer eats into them. The developer must repair within 30 days of written notice from you or the juristic person (clause 8.2).

Don’t confuse the warranty window with the deadline to sue. Under CCC Section 474, a defect claim prescribes one year from the date you discovered the defect. Found water penetration in month three? The clock is already running. Notify the developer in writing immediately and keep photographic evidence with dates.

The shrinking condo: area discrepancies

Developers measure final unit areas after construction, and the registered area often differs from the contract. CCC Section 466 draws the line at 5%. Within 5%, you must take the unit and the price adjusts pro rata, upward too if the unit is larger, unless the difference is one that would have stopped you signing had you known it. Beyond 5%, you may refuse to take the unit entirely, or take it at a proportionally adjusted price.

Watch for contract clauses forcing you to accept any size difference at the original price. Under Section 6/2, terms less favorable than the law are unenforceable. Move quickly when you find a discrepancy. In Supreme Court Decision No. 2493/2553 (2010) the contract described the building as standing on a 380-square-wah plot, and the plot was 200. The Court held that this was a mistake as to a quality of the condominium, which makes the contract voidable under Section 157, not void; avoidance had to come within one year of the buyer learning of it (Section 181), and because the buyer acted later than that, the claim failed.

Getting Your Deposit and Installments Back

Refund cases turn on two things: proving the developer’s breach, and calculating what comes back to you. Thai law splits your payments into categories, and the difference matters if the developer tries to keep your money.

Termination means full restitution

Once you validly terminate for the developer’s default, CCC Section 391 applies. Each party must restore the other to its original position. The developer returns your reservation fee, contract deposit and every installment. Interest runs from the date the developer received each payment, not from the date you sued.

What interest rate applies?

This is where many older articles mislead readers. Before 2021, statutory default interest was 7.5% per year, and you’ll see that rate in older judgments. A 2021 amendment to the Civil and Commercial Code changed the numbers. From 11 April 2021, the statutory rate under Section 7 is 3%, and default interest under Section 224 is 5% per year. Money returned on termination carries the Section 7 rate, not the Section 224 default rate, because Section 391 fixes no rate of its own: in Supreme Court Decision 129/2566 the Court ordered a returned down payment repaid with 7.5% a year up to 10 April 2021 and 3% from 11 April 2021, while the separate award of damages carried 5%. The contract may provide a better rate, and where it follows the standard form, a refund on termination for late transfer carries the same rate the developer set for interest on your late payments (clause 7.3.1). For force majeure refunds, the standard form applies Krung Thai Bank’s highest fixed deposit rate.

Deposits versus installments: why the label matters

If the dispute flips and the developer accuses you of default, it will try to keep everything. It can’t. The Supreme Court separates earnest money from installments. Earnest money is a true deposit given at signing: Section 377 is what makes it a deposit, and Section 378(2) is what lets the seller keep it when the buyer defaults. Installments are simply part payments of the price.

Decision No. 3301/2547 (2004) shows what that is worth in money. The buyer had paid 30,000 baht on booking and 120,000 on signing, then twelve instalments totalling 840,000. The Court held the first 150,000 was a deposit the seller could keep, but the 840,000 was part payment of the price and not a deposit; a clause forfeiting everything paid is a penalty under Section 379, which a court may reduce. It cut the seller’s retention to 440,000 baht and ordered 400,000 returned to the buyer, who was the party in default. Even a genuine deposit can be reduced if it is disproportionately high, under Section 7 of the Unfair Contract Terms Act B.E. 2540 (1997).

Last reviewed: 17 September 2026. This was a targeted review of the case citations on this page rather than of the page as a whole. The Supreme Court decisions cited above were read in Thai against the published judgments. Decisions 277/2553 (a contract silent on dates still requires the developer to begin at once and finish within a reasonable time, under Sections 203 and 368, and the buyer may stop paying instalments meanwhile) and 6746/2547 (a developer not ready to transfer cannot put the buyer in default, and on termination the money paid must be returned with interest) stand as published. The account of 3301/2547 was corrected: forfeiture of a deposit rests on Section 378(2), and that decision’s figures are now given. The other decisions cited on this page, the penalty rates and the practice guidance were not re-checked in this review.

Last reviewed: 30 September 2026 (interest only). The refund interest rate was corrected from 5% to 3% after reading Civil and Commercial Code sections 7, 224 and 391 in Thai and Supreme Court Decision 129/2566 to its disposition (returned down payment at 3% from 11 April 2021; damages at 5%). Re-read 6 October 2026 on what the 17 September review left unchecked: the body against Condominium Act sections 6/1 and 6/2, the Interior Ministry notification of 1 July 2008 that prescribes form Or.Chor. 22 (read in Thai from a published transcription), Civil and Commercial Code sections 466 and 474, and Decisions 5352/2553, 6474/2541, 1188/2549 and 2493/2553 in Thai. Corrected: the form lets the buyer terminate as soon as the transfer date is missed, with refund interest at the rate the developer set for the buyer’s late payments, not only after the penalty reaches 10%; the defect warranties run from registration of the condominium, not from the transfer of the unit; Decision 2493/2553 was a buyer’s loss on the one-year time limit for avoiding a voidable contract, and it concerned the land plot, not the unit; the facts of 6474/2541 and 1188/2549 are now stated as the Court found them; Section 466 obliges a buyer to accept a difference within 5% except where it would have stopped the purchase. 5352/2553 stands as published.

Step-by-Step: How to Sue a Thai Developer

Here’s the process we run for clients, from first letter to money in hand.

1. Build the file. Contract, receipts, brochures, ads, chat records, photos of the site, and a payment schedule. Get a company affidavit on the developer from the Department of Business Development to confirm who you’re suing and whether it’s still active.
2. Send a formal demand letter. A Thai-language notice by registered mail, stating the breach, the amount claimed, the interest, and a deadline (commonly 15 or 30 days). If you’re terminating, include a clear notice of termination. This letter fixes the developer’s default and starts the pressure.
3. Complain to the OCPB (optional but useful). The Office of the Consumer Protection Board takes complaints against developers, investigates and mediates. It’s free. Some developers settle here to avoid regulatory attention. Don’t let mediation drag past your limitation periods.
4. File a consumer case. A condo buyer suing a developer is a consumer under the Consumer Case Procedure Act B.E. 2551 (2008). You file where the developer is domiciled or where the project sits. Claims up to THB 300,000 go to the Kwaeng (district) court; larger claims go to the Civil or Provincial Court.
5. Use the consumer-case advantages. No court fees for the consumer plaintiff. Simplified, judge-driven procedure with case officers helping frame the complaint. The burden of proving facts within the developer’s exclusive knowledge, construction status, financing, permits, shifts to the developer. Courts aim to take evidence in continuous, compact hearings.
6. Ask for punitive damages where they fit. Section 42 of the Act covers developers who acted with knowing dishonesty or gross disregard for your rights. The court may add punitive damages of up to twice the actual damages. Where actual damages don’t exceed THB 50,000, the multiplier rises to five. Selling units in a project the developer knew was doomed is exactly the fact pattern this section targets.
7. Judgment and appeal. First-instance consumer cases typically run 6 to 12 months in our experience, longer if heavily contested. Appeals go to the Court of Appeal; further review by the Supreme Court requires permission.
8. Execute the judgment. A judgment isn’t a bank transfer. If the developer doesn’t pay, the Legal Execution Department seizes and auctions its assets: unsold units, land, bank accounts. Move fast. Other creditors are usually racing you.

Suing from abroad

You don’t need to live in Thailand to litigate here. A notarized power of attorney lets a Thai property lawyer file and run the case. Plan one trip for the witness hearing if the court wants your testimony; some courts now allow video testimony. Judgment money can be repatriated through your bank with the judgment and evidence of the original transfer.

Many buyers, same project? Consider a class action

Since the class action chapter was added to the Civil Procedure Code in B.E. 2558 (2015), groups of buyers with common claims against one developer can sue together. Stalled projects produce dozens of near-identical claims, which is what the mechanism was built for. A group also shares costs and gets the developer’s attention faster than one buyer alone.

Costs, Timelines and What You Can Recover

Item	Typical position in a consumer case
Court filing fees	Exempt for the consumer plaintiff under the Consumer Case Procedure Act
Lawyer’s fees	Privately agreed; fixed-fee and staged arrangements are common for refund claims
Demand letter stage	1 to 4 weeks, including the response deadline
OCPB mediation	Roughly 1 to 3 months, depending on caseload and the developer’s attitude
First-instance judgment	Often 6 to 12 months; contested cases can run longer
Principal recovery	All payments made: reservation, deposit, installments
Interest	3% per year (Section 7) on refunded payments since 11 April 2021, from the date the developer received each payment; damages carry the 5% default rate
Delay penalty (if not terminating)	At least 0.01% of price per day, capped at 10%
Punitive damages	Up to 2x actual damages under Section 42, in cases of bad faith
Execution of judgment	Weeks to many months, driven by what assets the developer still owns

One honest caveat from twenty years of doing this: winning the judgment is the predictable part. Collecting depends on the developer’s remaining assets. That’s why we check the developer’s land holdings and litigation history before filing, and why acting before other buyers file first genuinely improves recovery.

When the Developer Goes Under

The nightmare scenario: the project is abandoned and the company is insolvent. Your options narrow, but they don’t vanish.

Bankruptcy and rehabilitation claims

If creditors push the developer into bankruptcy, you must file a proof of debt with the official receiver. The statutory window starts running once the receiving order is published, so don’t sit on it. You’ll stand as an unsecured creditor behind banks holding mortgages over the land. Recovery percentages are modest, we won’t pretend otherwise, but buyers who file claims recover something; buyers who don’t, recover nothing.

Sometimes a white knight buys the stalled project and offers existing buyers new contracts. Have those reviewed before signing away your original claims. The replacement terms are often worse than the Section 6/2 standard form you already hold.

Protect yourself before the next purchase

If you buy off-plan again, treat developer risk as the main risk. Check the company’s registered capital, its track record of completed buildings, the construction permit and the environmental approval before paying more than a reservation fee. Our guide to property due diligence in Thailand walks through the full checklist. Our overview of buying a condo in Thailand covers the foreign ownership quota and transfer process. Push for escrow under the Escrow Act. Most developers will refuse. The ones that accept are usually the ones you can trust.

Before You Sign: The Off-Plan Checks That Prevent All of This

Everything above is a remedy. Remedies are slow, and a refund with interest is still years of your money sitting in someone else’s project. These are the checks that keep you out of court in the first place, and they all happen before the reservation fee is paid.

• The developer, not the building. Registered capital, shareholders and directors at the Department of Business Development, plus a litigation search against the company and its directors. A developer with a history of defended delay claims will have another one.
• The construction permit, and the EIA where the project size requires one. A project selling units before it holds these is selling you a planning application.
• The project mortgage. Most projects are built on land mortgaged to a lender. Ask in writing how and when your specific unit is released from that mortgage, and what happens to your unit if the developer defaults on the loan.
• The contract against the standard form. Compare clause by clause with the section 6/2 form. Every departure that reduces your rights is a clause the developer knows is unenforceable and is hoping you will honour anyway.
• The completion date and the penalty clause. A contract with no completion date, or one that lets the developer extend at will, is the single loudest warning sign in this market.
• Escrow, under the Escrow Act B.E. 2551. Ask for it. Most developers refuse, and the refusal itself is information. See how escrow works in Thailand.
• The foreign quota on your specific unit, confirmed in writing by the juristic person, in square metres. Off-plan buyers often discover at transfer that the quota filled while their building went up.

City-specific pages: Pattaya, Phuket, Hua Hin, Chiang Mai and Koh Samui.

Frequently Asked Questions

How ThaiLawOnline Can Help

We’ve been litigating against Thai developers since before most current projects broke ground. Our team reviews your contract against the Section 6/2 standard form and drafts the demand letter in Thai. We file the consumer case and pursue execution until you’re paid. We act for clients worldwide by power of attorney.

Facing a stalled project or a silent developer? Contact a Thai lawyer for a case assessment. You can also explore our bilingual database of Thai Supreme Court decisions and our guide on consumer law in Thailand. Planning another purchase? Start with buying property in Thailand as a foreigner.

Key Takeaways

• Your off-plan contract must follow the government’s standard form under Section 6/2 of the Condominium Act. Developer-friendly deviations are unenforceable.
• Late handover earns you a daily penalty of at least 0.01% of the price, capped at 10%. Terminate instead, and you get a full refund with interest.
• Defect warranties run 5 years for structure and 2 years for other components, but you must sue within 1 year of discovering a defect.
• You sue as a consumer: no court fees, a simplified procedure, a shifted burden of proof, and possible punitive damages under Section 42.
• Interest on refunds is currently 3% per year (Section 7), counted from the date the developer received your money.
• Speed matters. Early claimants recover from developers with assets; late claimants queue in bankruptcy.