How to choose a developer and a broker in Thailand: a market where agents need no licence

Estate agencies in Thailand operate without a licence, so even people who arrived a year ago sell flats. Four signs mark out a reliable developer: a 30–40 year history, land it owns, no court disputes and completed projects. A good broker shows years lived in the country and knowledge of the law, not of sales decks.

Why are there so many accidental brokers in Thailand?

A long list of occupations is closed to foreigners in Thailand, including all manual labour. A newcomer with no capital and no remote job is left with tourism and property.

The agency business is not licensed. According to a practitioner with 12 years in the Thai market, the typical story is to come for two years, sell as much as possible and leave.

In March brokers from Dubai headed for Phuket and Pattaya too. They do not know the market and sell from developers' presentations.

How do you spot a broker who knows the market?

They have lived in the country for many years and are part of the scene. The market is tight-knit: here you can invite the owner of a large development company for coffee, and news travels fast.

• explains the difference between freehold and leasehold without being prompted;
• sends the draft contract unasked;
• quotes the net yield, not the promised one;
• does not suggest putting land in a company's name;
• works legally, with a work permit.

How do you vet a developer?

By four signs. The first is history: the country has companies that have been building for 30–40 years.

• Land. The plot is owned by the developer and is not mortgaged; the state register shows this.
• Courts. Local lawyers know which developers buyers are suing.
• Completed buildings. The timing and quality of earlier projects.

Among the reliable names mentioned at our closed session for brokers were the large Bangkok groups Sansiri and Ananda. Delays on first phases happen even at strong companies.

Where does vetting matter most?

On Samui. The island has been built up by small companies, and the history of each is harder to trace.

On how the markets differ, see our piece on Pattaya and Samui.

What not to buy

A project at pre-sale stage, before the land has been registered to the developer. The country has no escrow accounts, and in a bankruptcy the buyer queues behind the contractors.

The details are in our piece on a market without escrow.

Frequently asked questions

Does an estate agent in Thailand need a licence?

No, agency work is not licensed. To work legally a foreigner needs only a work permit.

How do you check the land under a project?

In the state land register: it shows the owner of the plot and any encumbrances.

How many years should a developer have been in business to be trusted?

The benchmark is companies with a 30–40 year history and completed projects. A new company is vetted by its land and its court disputes.