Skip to content
Real estate investing in Thailand can be a smart long-term move, but many buyers—especially first-time and foreign investors—run into problems because they are unfamiliar with local laws and practices. Some real estate investing mistakes can lead to serious financial loss, legal disputes, or even loss of ownership rights.
Understanding these common mistakes early can help you protect your investment and make informed decisions.
1. Not Understanding Ownership Restrictions
One of the most common real estate investing mistakes is assuming that property ownership rules in Thailand are the same as in other countries.
Foreigners generally cannot own land, and condominium ownership is limited by foreign quota rules. Informal or nominee arrangements may appear convenient but can be legally risky.
How to avoid this:
Confirm what ownership structure is legally allowed before committing to any purchase.
2. Skipping Proper Due Diligence
Failing to conduct due diligence is a serious real estate investing mistake that often leads to disputes later.
Issues such as unclear title deeds, land encumbrances, zoning restrictions, or unpaid taxes may not be visible without proper checks.
How to avoid this:
Have a legal professional verify the title, land status, and related documents before making any payment.
3. Signing Contracts Without Legal Review
Many buyers assume that sale and purchase agreements are standard documents. This is another costly real estate investing mistake.
Contracts may contain unfavorable payment terms, limited remedies, or unclear obligations.
How to avoid this:
Always have contracts reviewed and explained in plain language before signing.
4. Underestimating Taxes and Transfer Costs
Focusing only on the purchase price is a common real estate investing mistake.
Additional costs may include transfer fees, withholding tax, specific business tax, and stamp duty.
How to avoid this:
Request a full cost breakdown early in the transaction process.
5. Not Checking the Developer’s Track Record
In off-plan purchases, trusting promises without verification is a frequent real estate investing mistake.
Project delays or legal non-compliance can affect completion and ownership.
How to avoid this:
Check the developer’s registration, licenses, and completed projects before paying any reservation or deposit.
6. Poor Financial Planning and Over-Leveraging
Some investors overestimate rental income or resale value, which is another common real estate investing mistake.
Market conditions can change, affecting cash flow and returns.
How to avoid this:
Plan conservatively and ensure you can meet financial obligations even during slow periods.
7. Ignoring Ongoing Legal and Compliance Obligations
After the purchase, some owners overlook ongoing legal duties. This real estate investing mistake can result in penalties or compliance issues.
This is especially relevant when property is held through a company or long-term lease structure.
How to avoid this:
Understand your continuing obligations and seek professional support where needed.
Avoiding Real Estate Investing Mistakes in Thailand
Avoiding real estate investing mistakes starts with proper planning, legal due diligence, and clear understanding of Thai property laws. With the right advice and preparation, investors can reduce risks and protect their interests.
Need help avoiding real estate investing mistakes in Thailand?
Our legal team can assist with due diligence, contract review, and property transfers to help protect your investment.
Contact us now for professional legal advice.
Disclaimer: This article is for general information only and does not constitute legal advice.
This article has been updated, reviewed and verified on January 2026 by:
Supat Samunram (Barrister)
Licensed Attorney-At-Law | Licensed Notarial Services Attorney, The Lawyers Council of Thailand
Legal Counselor, Central Juvenile and Family Court
Specializing in Contracts, Property, Corporate, and Family Matters
