12 Questions to Ask a Phuket Developer Before You Sign Anything in 2026

In 2026, Phuket's property market continues to attract developers at an extraordinary pace, with over 300 new projects registered in the preceding two years alone. Industry estimates suggest that at least 15% of those launches came from companies with no track record of completed builds. For international buyers, the stakes are high: one missed question before the first payment transfer can cost you not just money, but years of waiting with no clear resolution.

This article is a precise, 12-question checklist designed for buyers who want specifics, not generalities. Each question targets a real vulnerability in the Phuket off-plan market. Alongside each question, you will find an explanation of why it matters and what kind of answer should put you on alert.

Quick Answer

• Construction Permit is issued by the local municipality. Without it, the project is illegal. Verify the permit number at the Tessaban (municipal office) or Or Bor Tor (Sub-district Administrative Organisation) covering the project location.
• EIA (Environmental Impact Assessment) is mandatory for projects exceeding 80 residential units or situated near the coastline. A missing EIA can result in a court-ordered halt to construction, even after the building is complete.
• Financial health can be partially assessed via Thailand's Department of Business Development portal (dbd.go.th), which publishes registered capital and annual filings.
• Average completion delays among new Phuket developers run between 6 and 18 months, according to market estimates.
• Structural warranty under Thai law is a minimum of 5 years, yet many developer contracts reduce this to just 1 or 2 years in the fine print.
• Land title (Chanote) under the project must be free of encumbrances. Always request a current extract from the Land Department before signing.

Scenarios and Options

Scenario 1: A SET-Listed Developer

Companies listed on the Stock Exchange of Thailand (SET) are required to publish audited financial statements. This significantly simplifies due diligence. Ask for the company's ticker, then visit the SET website and review the Financial Statements section directly. Pay particular attention to the Debt-to-Equity Ratio: a figure above 2.0 indicates the company is heavily leveraged. For SET-listed developers, focus your attention on questions 1, 5, 7, 9, and 12 from the checklist below.

Scenario 2: A Local Developer With 3 to 5 Completed Projects

This is the most common developer profile on Phuket. All 12 questions are critical here, with particular emphasis on questions 2, 3, 6, and 8. Ask for contact details from owners in already-delivered projects and speak with them directly. Cross-reference the company's history on dbd.go.th to confirm how many years it has been operating and what its registered capital is. A reasonable baseline for trust is 10 million THB in registered capital and at least 5 years of operation.

Scenario 3: A New Developer With No Completed Projects

This represents the highest risk category. Here, questions become requirements. Without a bank guarantee or Letter of Credit covering the project value, investing with an unproven developer is effectively a venture-capital bet. If the developer cannot present a single completed project, the recommended approach is to either walk away or insist on a payment schedule with a maximum upfront payment of 20%, with all subsequent tranches tied strictly to construction milestones.

Comparison Table

The Full 12-Question Checklist

Question 1: What is your Construction Permit number? The Construction Permit is the single most important document in any Phuket property transaction. Without it, the developer is building illegally. The permit number can be verified at the relevant local authority. If the developer says the permit is 'in process,' it means sales launched before approvals were secured - a serious red flag.

Question 2: Do you have an EIA, and which authority approved it? For condominium developments of 80 units or more, and for any project within the coastal zone (generally within 50 metres of the sea), an EIA is compulsory. Approval comes from the Office of Natural Resources and Environmental Policy and Planning (ONEP). An unapproved project can be halted by court order even after construction is finished.

Question 3: Who owns the land under the project? Request the Chanote title document (Nor Sor 4 Jor), which is the highest category of land title in Thailand and includes GPS-accurate boundary coordinates. If the land is registered under Nor Sor 3 Gor, it is still legally usable but carries additional risk. Check with the Land Department for any mortgages, servitudes, or active legal disputes on the title.

Question 4: What percentage of units have already been sold? If fewer than 30% of units are sold at the time construction begins, the developer may lack sufficient cash flow to complete the build. Ask whether the project has bank-level project finance in place. If there is no external financing and sales are weak, a freeze or delay becomes likely.

Question 5: Which bank is financing the project? Project finance from a major Thai bank - Bangkok Bank, Kasikornbank, SCB - is an indirect quality signal, because the lender has already conducted its own risk assessment. If there is no bank financing, the construction is running entirely on buyer payments.

Question 6: Can we visit one of your completed developments? Not a showroom. A real building delivered 2 to 3 years ago. Inspect the facades, common areas, pool, and parking. Visible cracking on exterior surfaces within two years of handover is a clear indicator that materials were substandard.

Question 7: What is the payment schedule, and is it milestone-linked? A healthy schedule looks like this: 20 to 30% at reservation and contract signing, with the balance paid in tranches tied to construction stages (foundation, structure, interior fit-out, handover). Any developer requesting 50% or more before construction begins is placing an unreasonable risk on the buyer.

Question 8: What does the post-handover warranty cover, and for how long? Thai Civil and Commercial Code sets a minimum 5-year warranty on structural elements. However, developers frequently limit the warranty on finishes, plumbing, and electrical installations to just 1 year in the contract. Clarify every item individually.

Question 9: Who will manage the property after handover? Common area maintenance fees (CAM fees) in Phuket range from 40 to 120 THB per square metre per month. When the developer creates its own management company with no competitive tender, fees tend to be inflated with no accountability. Ask explicitly whether residents will have the right to vote on changing the management company.

Question 10: What rental yield figures appear in your marketing, and how are they substantiated? Promises of 8 to 10% annual returns are standard marketing practice. The actual average gross rental yield for Phuket condominiums in recent years has ranged between 5 and 7% before deducting management costs, taxes, and vacancy periods. Ask for a net yield projection that includes all expenses.

Question 11: Are there financial penalties for late completion? Solid contracts include a delay penalty clause, typically set at 0.01 to 0.05% of the property value per day of delay. If no such clause exists, insist on adding one before signing. Without financial penalties, the developer has no contractual incentive to meet the agreed timeline.

Question 12: What are the refund conditions if the contract is terminated? Understand what happens both if you choose to exit and if the developer becomes insolvent. Standard practice involves the developer retaining 10 to 20% of amounts paid. Any contract that allows the developer to retain the full amount paid upon buyer cancellation is a one-sided agreement - and a warning sign.

Main Risks and Mistakes

• Buying based on a render. Three-dimensional visualisations carry no legal weight. Only the technical specification attached to the contract defines what you will actually receive at handover.
• Skipping an independent lawyer. Legal due diligence in Phuket typically costs between 30,000 and 80,000 THB depending on scope. A contract error can cost many multiples of that. The lawyer must be yours - not one 'recommended' by the developer.
• Failing to verify the land title. There have been documented cases where land under a development was mortgaged to a bank. If the developer goes bankrupt, the bank seizes the land, including the unit you paid for.
• Transferring funds to a personal account. All payments must go to the corporate bank account of the legal entity named in the contract. Payments to a director's personal account offer you almost no legal recourse.
• Relying on verbal commitments. Guaranteed returns, free furnishing packages, promised discounts - every commitment must be written into a signed appendix to the purchase agreement.
• Forgetting the FET Form. Foreign buyers transferring funds from abroad must ensure each transfer is processed as a Foreign Exchange Transaction (FET, also called Thor Tor 3). Without this documentation, repatriating funds when you eventually sell becomes legally complicated or impossible.

FAQ

Where can I verify a developer's construction permit in Phuket? The Construction Permit number can be confirmed at the Tessaban office or Or Bor Tor responsible for the project's location. Always request a copy of the permit from the developer and have an independent lawyer review it.

Is an EIA check mandatory before buying a condo? If the project meets the EIA threshold (more than 80 units or a coastal location), and the assessment has not been completed and approved, construction can be halted by court order. For buyers, this translates directly into financial risk.

How much does legal due diligence cost in Phuket? A comprehensive review covering land title, company registration, licenses, and the purchase contract typically costs between 30,000 and 80,000 THB, depending on the complexity of the transaction.

What is a Chanote and why does it matter? Chanote (Nor Sor 4 Jor) is the highest category of land title in Thailand. It includes precise GPS-defined boundary coordinates and offers the strongest legal protection. Buying property on land without a Chanote introduces meaningful additional risk.

Can I check a Thai developer's financials online? Yes. The Department of Business Development portal (dbd.go.th) provides registration data, registered capital figures, and annual financial filings. Accessing detailed reports requires a fee of approximately 500 THB per extract.

What upfront payment is considered safe? The industry standard is 20 to 30% at signing, with all subsequent payments linked to construction milestones. Payment schemes requiring more than 50% before construction begins carry elevated risk.

What can I do if a developer delays handover? If your contract includes a penalty clause for late completion, engage a lawyer to send a formal notice. If no such clause exists, your leverage is minimal - which is precisely why insisting on penalty terms before signing is so important.

How do I know if a promised rental yield is inflated? Compare it against published market data. The average gross rental yield for Phuket condominiums sits in the 5 to 7% range. Any promise of 10% or above without a detailed cost breakdown should be treated as a marketing claim, not a financial guarantee.

Do I still need a lawyer if the agent says everything is checked? Yes. An agent's financial interest is in closing the transaction. An independent lawyer's interest is in protecting you. These are fundamentally different incentive structures.

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