Thailand Developer Check 2026: 6 Documents to Verify Before Your First Payment

Only a few years ago, Koh Samui had almost no condominium construction. In the current cycle, 876 units have been announced on the island and 699 of them are already sold, many to buyers before the buildings are even completed. Phuket operates on a different scale, with roughly 10,300 units. Nationwide, more than 30,000 new condos were delivered in 2025 and early 2026, and Russian buyers remain in the top 5 by nationality.

At this pace, companies with one completed building and a render of the second are entering the market. Checking the seller stops being a formality the moment you sign a reservation.

Quick Answer

Before the first payment, verify the seller's legal status through a DBD extract, the land title, an approved EIA, the municipal construction licence, 3-5 years of financial statements, and the litigation history. If even one item is missing, construction can be halted and your money may sit in a company whose only asset is a plot of land.

• DBD extract (Department of Business Development, Ministry of Commerce): shows shareholders, directors with signing authority, paid-up registered capital, and any sign of liquidation or bankruptcy. Request an extract no older than one month, not a two-year-old scan from a sales presentation.
• Land title: Chanote (Nor Sor 4 Jor) gives exact GPS-surveyed boundaries and full ownership rights. Other title types are weaker. Check the reverse side of the document, where mortgages, easements, leases, and seizures are registered.
• EIA is mandatory for condominium projects of 80 units or more, or with total usable area above 4,000 sq m, under the Enhancement and Conservation of National Environmental Quality Act. Coastal zones add further environmental requirements.
• Since August 2025, the Ministry of Natural Resources has extended mandatory EIA to commercial buildings of 10,000 sq m or more or 23 metres or taller. Base thresholds for residential condos are unchanged, but restricted zones may require an expanded assessment, up to and including carbon footprint accounting.
• Construction licence (Or. 1) and municipal approval. Off-plan sales without a licence are made at the buyer's risk.
• Finances and reputation: 3-5 years of accounts, tax arrears, lawsuits in Thai courts, and the number of projects delivered on time over the past five years.

A full document package for one project takes two to four weeks to assemble. By market estimates, a legal audit of a developer in Phuket or Samui costs a few tens of thousands of baht, noticeably less than the first instalment under a sale and purchase agreement.

Independent buyer guides for Phuket make the same point: confirm that every document relates to the same specific project, phase, and unit, and separate permits already granted from permits still being applied for. Remember that an EIA is not the same as a building permit.

Main Risks and Mistakes

The main risk in off-plan purchases is not outright fraud but ownership structure. Most Thai projects are built through a separate single-purpose project company. It has no track record, no other revenue, and no assets besides the land, which is often already mortgaged to a bank for the construction loan. If the project stalls, you would be litigating against that shell, not against the group whose name is on the hoarding.

This is also where the most popular check falls apart. Registered capital on a DBD extract proves nothing by itself: a declared 100 million THB may be only a quarter paid up, while 1 million THB at a subsidiary of a major developer may simply mean funding comes from the parent's balance sheet. Look at the paid-up portion of capital, the bank loan behind the project, and the financial statements, not the headline figure.

The second common misconception is treating an approved EIA as a guarantee of completion. It is permission to build, nothing more. Projects regularly face rejections, revision requests, or months of delay over environmental norms, overloaded infrastructure, and coastal restrictions, often after a high-profile sales launch.

The most expensive mistake is trusting renders alone.

What to check, and how to close each risk:

• The seller does not own the land. An option or preliminary agreement may stand in for ownership. Require a copy of the Chanote in the developer company's name and a fresh extract from the land office.
• Title weaker than Chanote. For a villa this is a direct risk of boundary disputes. Do not pay until the title is confirmed and the plot has been allocated to your specific house.
• Foreign quota exhausted. In a condominium, foreigners may own up to 49% of total usable area. Request written confirmation of the remaining quota on your date, and transfer funds from abroad in foreign currency so the bank issues the FET form needed to register your title.
• Contract on the developer's own template. Registered condominium projects use an approved standard sale and purchase agreement that protects the buyer. A custom version with vague deadlines and no late-delivery penalty is a reason to negotiate or walk away.
• Payment schedule tied to the calendar, not to construction. Link instalments to stages: foundation, frame, roof, finishing. A payment to an individual's or director's personal account is unacceptable at any discount.
• Guaranteed yield of 7-10% a year. Establish who actually carries the obligation, the management company or the developer, and what happens to payouts if occupancy drops.

No report replaces a site visit. In one day you can see whether the crane is standing, whether workers are on site, and whether the construction stage matches what buyers say in their chat group. If you plan to view several projects at once, book a hotel near the construction sites rather than in the resort area: in high season the road between Bang Tao and Rawai eats half a viewing day.

Where all of this is overkill: if you are buying a completed unit in a delivered building for 3-4 million THB, the developer's financial health no longer concerns you. It is enough to verify the title, a certificate of no outstanding common-fee debts from the condominium's juristic person, and the available foreign quota.

Our position on off-plan: do not enter a project from a developer with fewer than two completed and transferred-to-owners projects in the same province, whatever the launch discount. A Bangkok track record does not carry over to Samui automatically, since logistics, contractors, and environmental approvals work differently on the islands.

FAQ

What is a DBD extract and how do I get one?

It is an official company certificate from the Department of Business Development showing registration date, paid-up capital, shareholders, directors, and status (active, in liquidation, or bankrupt). A Thai lawyer or the buyer can order it through the DBD system, and it is usually issued within one to two business days.

How does Chanote differ from other land titles?

Chanote (Nor Sor 4 Jor) is full ownership with GPS-fixed boundaries. Weaker forms such as Nor Sor 3 Gor give a right of possession with approximate boundaries and require extra procedures before a transaction. For a villa purchase, treat a Chanote as a condition of entry.

Is an EIA needed for a single villa?

Thresholds for villa estates are calculated differently from condos, and a standalone house on a private plot generally does not need an environmental impact assessment. But an estate registered as a land subdivision requires its own set of permits. Check against the specific plot and zoning, not by analogy with a neighbouring project.

How long does developer due diligence take?

Two to four weeks for the full cycle: extracts, title, financial statements, permits, court records, and the contract. A rush check in 3-5 days is possible but usually skips multi-year financial analysis.

What if the developer misses the delivery date?

First read the contract: does it set a late-delivery penalty, a grace period, and a right to terminate with a refund? Under the approved condominium sale and purchase form, the buyer may claim a refund with interest for material delay. After that come a formal claim, mediation, arbitration, or court, depending on the contract's dispute clause.

How do I make sure my money goes to the right account?

Pay only to the corporate account of the company named as seller in the contract. Transfer from abroad in foreign currency with the purpose of payment stated. Without a FET form from the Thai bank, the Land Department may refuse to register a foreigner's title to the condo.

Can I find out how much foreign quota is left in a project?

Yes. For a completed condominium, the juristic person and the Land Department confirm the data. For a project under construction, ask for a written developer commitment allocating your unit to the foreign quota, with the unit number stated.

Is it worth buying from a new developer for a discount?

If the company has not handed over a single project to owners, a 15-20% launch discount does not cover the risk of a freeze. The one exception: land owned outright and unmortgaged, a licence in hand, and payments tied to construction stages.

The next step is simple: before paying a reservation, ask the seller for four files, the DBD extract, a copy of the title with its reverse side, the EIA approval, and the construction licence. If they arrive within a day, the project is worth pursuing further. If another set of renders arrives instead of documents, you have your answer.

Source: Villa Point Journal

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