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Top 5 Mistakes When Buying Resale Property in Phuket
In this article, we analyze the five most common mistakes buyers make when purchasing resale (secondary market) property in Phuket and explain how to avoid risks at every stage of the transaction. You will learn which checks are mandatory, what to pay attention to, and how to protect your investment.
Contents
Buying resale property abroad is always a combination of opportunities and risks. Below is a detailed practical guide outlining the most common mistakes made in Phuket — and concrete steps to help you avoid them.
1. Failing to Verify the Chanote and Legal Ownership Status
What happens. Buyers trust the seller or agent and skip a basic check — whether the property has a chanote (the official land title deed) and whether it matches the details stated in the contract and cadastral map.
Why this is risky. Without proper title verification, you may end up with a property that has encumbrances, incorrect land boundaries, or unresolved land subdivision issues.
How to avoid it:
Why this is risky. Without proper title verification, you may end up with a property that has encumbrances, incorrect land boundaries, or unresolved land subdivision issues.
How to avoid it:
- Request a copy of the chanote and verify land boundaries, plot numbers, and ownership records with the Land Department.
- Engage a lawyer or notary who will personally check the original documents.
Important to know:
The chanote is the main document confirming ownership rights to land or property in Thailand; verifying it is a mandatory step before purchase.
The chanote is the main document confirming ownership rights to land or property in Thailand; verifying it is a mandatory step before purchase.
Expert tip:
Never transfer large sums of money based solely on a copy of the seller’s passport — wait until the title has been fully verified and documents are signed at the Land Department.
Never transfer large sums of money based solely on a copy of the seller’s passport — wait until the title has been fully verified and documents are signed at the Land Department.
2. Ignoring the Reputation of the Developer / Previous Owner and the Property’s History
What happens. Buyers base their decision on attractive photos and promised returns, without checking who built or renovated the property, whether there are outstanding debts, disputes, or claims.
Why this is risky. Poor-quality renovations, unpaid fees (such as utilities or maintenance), or ongoing legal disputes can turn a purchase into a costly and stressful experience.
How to avoid it:
Why this is risky. Poor-quality renovations, unpaid fees (such as utilities or maintenance), or ongoing legal disputes can turn a purchase into a costly and stressful experience.
How to avoid it:
- Request the developer’s or seller’s portfolio: completed projects, reviews, track record on delivery timelines.
- Visit the property in person to assess finishes, utilities, surroundings, and infrastructure.
Expert tip:
If the property is part of a complex, ask how previous owner complaints were handled — warranties, claims, and interactions with the management company.
If the property is part of a complex, ask how previous owner complaints were handled — warranties, claims, and interactions with the management company.
3. Choosing the Ownership Structure (Freehold vs Leasehold) Without Considering Visa and Mortgage Implications
What happens. The buyer does not fully understand the difference between freehold ownership and leasehold rights, or how this choice affects mortgages, visas, and the ability to dispose of the property.
Why this is risky. An unsuitable ownership structure may limit your rights (resale, inheritance, mortgage), restrict use of the property as collateral, or affect eligibility for certain visa types.
How to avoid it:
Why this is risky. An unsuitable ownership structure may limit your rights (resale, inheritance, mortgage), restrict use of the property as collateral, or affect eligibility for certain visa types.
How to avoid it:
- Clarify the ownership structure of the specific property and confirm when the ownership was registered in the foreign buyer’s name.
- If planning to use a mortgage, check bank requirements for foreigners — not all banks lend to non-residents, and many only finance freehold properties.
Important to know:
Mortgages for foreigners are possible in Thailand, but under strict conditions: income verification, long-term employment in Thailand, or special programs offered by selected banks. Developer installment plans are often simpler from a procedural standpoint.
Mortgages for foreigners are possible in Thailand, but under strict conditions: income verification, long-term employment in Thailand, or special programs offered by selected banks. Developer installment plans are often simpler from a procedural standpoint.
Expert tip:
If your goal is long-term investment and inheritance planning, prioritize properties with freehold ownership options or consider a purchase structure involving a Thai company — only after consulting a qualified lawyer.
If your goal is long-term investment and inheritance planning, prioritize properties with freehold ownership options or consider a purchase structure involving a Thai company — only after consulting a qualified lawyer.
4. Miscalculating Profitability Without Accounting for Fees, Taxes, and Maintenance
What happens. Buyers focus on “gross” rental income (maximum advertised rental rates) and assume perfect occupancy, ignoring operating costs, management fees, taxes, and depreciation.
Why this is risky. Net profit can be significantly lower than expected; rental pool and guaranteed income programs have their own conditions and hidden costs.
How to avoid it:
Why this is risky. Net profit can be significantly lower than expected; rental pool and guaranteed income programs have their own conditions and hidden costs.
How to avoid it:
- Request real-life case studies: occupancy rates, gross revenue, and net profit after all deductions.
- Clarify the income distribution formula in rental pools (gross revenue vs net profit) and management company commissions (typically 20–40%).
Important to know:
Rental pool payouts may be annual, quarterly, or monthly, depending on the operator. Common revenue split ratios include 60/40, 70/30, or 80/20.
Rental pool payouts may be annual, quarterly, or monthly, depending on the operator. Common revenue split ratios include 60/40, 70/30, or 80/20.
Expert tip:
Ask for a 3–5 year income simulation that accounts for real commissions, seasonality, and maintenance costs.
Ask for a 3–5 year income simulation that accounts for real commissions, seasonality, and maintenance costs.
5. Signing Contracts and Transferring Funds Without Fully Understanding Payment Terms, Penalties, and Transaction Stages
What happens. Buyers rely on verbal agreements and transfer deposits without clearly defining handover stages, penalties for delays, refund conditions, or quality guarantees.
Why this is risky. Problems with property handover, unfulfilled obligations by the seller or developer, and financial losses during disputes often result from poorly structured payment schemes and non-transparent contracts.
How to avoid it:
Why this is risky. Problems with property handover, unfulfilled obligations by the seller or developer, and financial losses during disputes often result from poorly structured payment schemes and non-transparent contracts.
How to avoid it:
- Carefully review the sale and purchase agreement: timelines, payment stages, ownership transfer conditions, and liabilities of each party.
- Discuss the payment structure: installment plan vs mortgage; confirm which documents are required for registration at the Land Department (proof of foreign fund transfer, etc.).
Important to know:
Developer installment plans are often easier for foreigners to arrange, while bank mortgages require income verification, local employment, and extensive documentation.
Developer installment plans are often easier for foreigners to arrange, while bank mortgages require income verification, local employment, and extensive documentation.
Expert tip:
Never pay the final installment before official ownership registration at the Land Department and formal acceptance of the property.
Never pay the final installment before official ownership registration at the Land Department and formal acceptance of the property.
Checklist Before Purchase
1
Verify the original chanote and confirm land boundaries.
2
Request the developer’s portfolio, property history, and renovation documents.
3
Clarify the ownership structure (freehold/leasehold) and its impact on visas and mortgages.
4
Request real rental income figures and rental pool terms (commissions, payout frequency).
5
Read and fully understand the contract: timelines, penalties, liabilities, acceptance, and registration procedures.
Final Expert Recommendations
Work with a reputable agency or an independent lawyer who represents your interests — this significantly reduces legal and financial risks.
Request transparent case studies and financial data from the management company if the purchase is intended for rental income.
Plan a financial buffer for unforeseen expenses (repairs, low season, changes in tax or visa regulations).
© OneBaan
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+66 906 555 919
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