Buying off-plan in Phuket: the process, staged payments and escrow

Why buy off-plan? Pre-construction units are usually cheaper than finished stock, come with staged payment plans, and offer the best choice of layouts and views. The trade-off is time and construction risk — you are buying a promise to deliver.

How do payments work? Off-plan is paid in stages tied to construction milestones — typically a reservation deposit, a larger payment on signing the sale and purchase agreement, then instalments as floors or phases complete, with a final balance at transfer. The exact schedule is set in the contract; the more that is payable only on completion, the better protected you are.

What is escrow, and should I use it? Escrow holds your money with a neutral third party and releases it to the developer against verified progress, rather than paying the developer directly upfront. Bank guarantees work similarly. Not every project offers them, but they materially reduce the risk of paying for a building that stalls. Ask early whether escrow or a guarantee is available.

How do I check the developer? Look at delivered projects you can physically inspect, the company's track record and financial backing, and whether the land title is clean. A listed developer or one with a long delivery history offers more reassurance; a first-time developer warrants extra caution and stronger contractual protection.

What should the contract cover? A clear payment schedule, the completion date and penalties for delay, the specification and finishes, the ownership structure and foreign-quota confirmation, and your remedies if the project is not delivered. Have an independent lawyer review it before any non-refundable payment.