Thailand's resort markets have hundreds of developers — from large public companies to firms set up for a single project. On the surface, their projects look alike: renders, showrooms, promises of returns. Underneath, risk levels vary widely. Due diligence takes a few days and costs less than a reservation deposit. Below are seven questions we ask every developer.
1. Who is legally selling the property
The name on the billboard and the company in the contract aren't always the same. Check the seller against the Department of Business Development registry: registration date, registered capital, directors, and financial statements from recent years — these are filed annually and publicly available. A company registered six months ago with minimal capital is a project that has nothing behind it but itself.
Large developers often create a separate legal entity for each project. That's normal — but then it matters who the parent company is and whether it guarantees the entity's obligations.
2. Is there a construction permit
The construction permit is issued by the local administration. Without it, sales are illegal — and this does happen, especially on the islands. Ask for a copy and check that the permit's parameters — number of floors, number of units — match the project. A permit for 4 floors on a 7-floor project is not uncommon.
For projects on land with environmental restrictions — coastal zones, slopes — an environmental impact assessment (EIA) approval is required. Its absence can halt construction at any stage.
3. What about previous projects
This is the most revealing question. How many projects has the developer completed, when, and with what delay relative to the promised date? Visit one or two of them without a developer representative: check the building's condition, whether the pool works, and what residents and security staff say. Ask how the developer responded to defects after handover.
4. Who is financing the construction
What is the building funded with: buyers' money or a bank loan? If it relies solely on pre-sales, construction will stall if sales slow down. If there's project financing from a bank, the bank has already vetted the developer — that's an added layer of assurance. Ask directly; an evasive answer is an answer too.
5–7. Quota, timeline, guarantees
Fifth question: how much of the foreign quota has been sold. If more than 40% of the area is sold, the quota is nearly exhausted, and you may be offered leasehold instead of freehold. Ask for the quota to be guaranteed in the contract.
Sixth: what is the handover deadline, and what penalty applies for delays. No penalty, or a symbolic one — 0.001% per day — means the developer isn't confident about the timeline. The standard is 0.01–0.1% per day, with the right to terminate if the delay exceeds one year.
Seventh: what backs up the promises — guaranteed income, buyback, furnishing. If a promise isn't written into the contract with specifics, it doesn't exist.
Red flags that make us walk away from a project
Some things no discount or installment plan can offset. The selling company isn't in the registry, or it was registered a month before sales launched. The construction permit isn't shown, or its parameters don't match the project. The land under the project doesn't belong to the developer, or it's mortgaged without the bank's consent to sell. An EIA hasn't been passed where one is required.
Milder but still concerning: sales are made only to foreigners through agents with commissions of 10% or higher — meaning the Thai market doesn't believe in this project. The developer refuses to include a penalty clause and quota guarantee in the contract. The previous project was delivered two years late with an open list of unresolved defects. Guaranteed income of 9% or more is promised without a clear explanation.
We don't take on projects with the first group of red flags, and we warn clients about the second. Over seven years, this has saved clients from several projects that ultimately were never built.
FAQ
Where can I check Thailand's company registry?
On the Department of Business Development (DBD) website — in Thai, with paid extracts. This is usually handled by a lawyer; an extract with financial statements costs a few hundred baht.
What is an EIA and when is it required?
An Environmental Impact Assessment. It's mandatory for large-scale projects, coastal zones, slopes, and high-rise buildings. Construction without an EIA where one is required can be halted by court order.
Should I buy from a developer with a history of delays?
A 6–12 month delay from a major developer is normal for the market. Systematic delays of 2–3 years are not. Look at whether the developer ultimately delivered and how they handled defects.
