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SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
SUWANVARA LAWFIRM
SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
Real Estate Law

Buying or Selling a Condo Contract Before Completion in Thailand: Novation, Developer Consent and the Money Trail

Taking over another buyer's off-plan condo contract can get you a unit below the developer's current price — or leave you with a contract the developer will not recognise. Developer consent, what you are actually buying, instalments already paid, the seller's defaults, and the foreign-currency trail a foreign buyer needs at transfer.

Suwanvara Law FirmProperty TeamSeptember 19, 20269 min read

A contract, not a unit

Off-plan buyers sometimes sell their position before the building is finished — because their plans changed, because prices rose, or because they cannot pay the remaining instalments. The buyer who takes over steps into the original contract with the developer. This is often called a novation, a re-assignment, or in Thai practice selling the down payment.

Done properly, the new buyer gets a unit at a known price with part of it already paid. Done informally, the new buyer pays the seller for a contract the developer does not recognise.

Most developer contracts:

  • Restrict assignment without the developer's written consent
  • Require the developer's own transfer form, signed by seller, buyer and developer
  • Charge a transfer fee and sometimes limit how late in the project a transfer can happen

Without consent, the developer continues to deal with the original buyer. Make consent a condition: no money to the seller until the developer has confirmed in writing that it will accept you.

2. What you are buying

ItemWhat to obtain
The developer contractFull copy, including all annexes and amendments
Payment recordDeveloper's statement of instalments received and any arrears
Unit detailsFloor, number, area, specifications, parking
Completion dateAnd any extension already announced
Foreign quotaConfirmation that the unit can be transferred to you, if you are a foreigner
Seller's authorityIdentity, marital status, spouse consent where relevant

3. The seller's defaults

If the original buyer is behind on instalments, the developer may charge penalties or have the right to terminate. Before paying the seller:

  • Get a developer statement of payments and arrears
  • Make clearance of arrears a condition of completion
  • Confirm the developer has not issued a default notice

4. Structuring the payment

The safest structures make payment and transfer happen together:

  • Payment at the developer's office when the transfer form is signed
  • Escrow or staged release tied to the developer's written acceptance
  • No large deposit to the seller before developer consent

Avoid paying the full premium to the seller on the strength of a private agreement.

5. Foreign buyers: the money trail

To register a condo in a foreigner's name, the land office needs evidence that the purchase money came into Thailand in foreign currency in the buyer's name, normally through an FET form or bank credit advice.

A novation complicates this:

  • Instalments the original buyer paid may have come from Thai funds
  • The premium you pay the original buyer is a private payment
  • The remaining instalments you pay the developer are the part you control

Before paying anything, agree with the developer and your bank how the transfer will be evidenced. Getting this wrong can mean the land office refuses to register the unit in your name at completion.

See buying an off-plan condo from a developer for the rest of the developer-side checks.

6. Tax and costs

Selling contract rights can create tax for the seller, and the developer's transfer fee and eventual land office costs need to be allocated. Agree in writing who pays what, so the difference does not appear at the developer's counter.

7. When the seller is abroad

Sellers are often overseas. A power of attorney can work, but it needs to be specific, properly executed and, if signed abroad, certified. See documents that need notarisation.

Checklist

  1. Developer's written consent in principle obtained
  2. Full developer contract and payment statement reviewed
  3. Arrears cleared or made a condition
  4. Foreign quota and money trail agreed with developer and bank
  5. Payment structured to happen with the signed transfer form
  6. Taxes, fees and costs allocated in writing
  7. Seller's authority and spouse consent checked

Frequently asked questions

Can I take over someone else's condo contract without the developer's consent?+

Usually not in any way that protects you. Most developer contracts restrict assignment and require the developer's written consent, often on its own form and against a fee. Without that consent, the developer continues to treat the original buyer as its counterparty, and you may have paid for a contract you cannot enforce.

What exactly am I buying in a novation?+

You are buying the original buyer's position under the developer's contract — the right to complete the purchase, the instalments already credited, and the obligations still outstanding. You are not yet buying the unit. That is why the contract terms, the payment record and any defaults by the original buyer matter as much as the price.

What if the original buyer is behind on instalments?+

The developer may treat the contract as in default, charge interest or penalties, or have the right to terminate. Get a statement from the developer of payments received and any amounts overdue before you pay the seller, and make the seller clear any arrears as a condition of completion.

As a foreigner, does the money I pay the original buyer count for the FET requirement?+

This is the point most often missed. The land office looks for evidence that the purchase money for the unit came into Thailand in foreign currency in the buyer's name. Money paid privately to the original buyer, and instalments the original buyer paid from Thai funds, may not give you that evidence. Plan the money trail with the developer and the bank before paying anything.

Is this the same as buying a resale condo?+

No. A resale is a sale of a completed unit that already has a title, registered at the land office. A novation happens before completion and transfers rights under the developer's contract. The risks, documents and checks are different. For completed units, see our guide on buying a resale condo from a private owner.