Buying Off-Plan Property in Koh Samui

Buying in Koh Samui

How to buy a condo or villa before it’s built without taking on the developer’s risks: checking the developer, the land and permits, the contract, payment schedules, rental guarantees and handover.

By Samui Real Estate, Property ConsultantLast reviewed November 20268 min read

A large share of new villas and condos on Koh Samui are sold off-plan, sometimes before a single foundation is poured. Buying early can mean the best choice of units and views, prices below what the finished property will sell for, and payments spread over the build. It also means you’re trusting a developer to finish on time, to the specification, and to stay solvent. This guide explains how an experienced buyer manages those risks. See current projects on our developments page.

General information, not legal advice. Have every off-plan contract reviewed by your own property lawyer.

Why buyers choose off-plan

• Choice. The best units, floors and views go first.
• Price. Launch pricing is often below the eventual price of finished units in the same project.
• Payment plans. Instalments spread over construction instead of one lump sum.
• New. A modern specification, new systems and a defects warranty.

The risks to manage

Risk	What it looks like	How to manage it
Delay	Completion slips by months or years	A fixed date, penalties and a right to cancel and be refunded
Change	Smaller rooms, cheaper finishes, a changed layout	A detailed specification and plans attached to the contract
Developer failure	Construction stops	Track record, finance, land status, milestone payments
Title problems	The land isn’t owned, or is mortgaged	Land Office check before you pay
Permit problems	No building permit or EIA	Copies of permits before you pay
Rental shortfall	Projected income doesn’t arrive	Treat projections as projections
Currency	The exchange rate moves during the build	Plan transfers; consider fixing rates

Checking the developer

• The company’s registration, directors and paid-up capital.
• Completed projects, delivered on time and to specification. Visit at least one and talk to owners.
• Any disputes, court cases or unfinished projects.
• How the project is financed: the developer’s own money, bank finance or buyers’ deposits.
• Who will manage the building or estate after completion.

Checking the land and permits

• Who owns the land, and whether it is mortgaged to a bank. A mortgage isn’t unusual for project finance, but you need to know how your unit or plot will be released from it at completion.
• The building permit for the buildings you are buying.
• The Environmental Impact Assessment (EIA), where the project’s size requires one. Building can’t legally start before it’s approved.
• For villa projects: how the land will be leased to you, when the lease and superficies are registered, and in whose name the building permit is.
• For condo projects: the building must be registered as a condominium before units can be transferred.

The contract

Your lawyer should make sure the contract covers:

• Specification: plans, unit size, finishes, fixtures and any furniture package, attached as schedules.
• Area tolerance: what happens if the finished unit is smaller than stated.
• Completion date and penalties or remedies for delay, including your right to cancel and be refunded with interest after a set period.
• Payment schedule, ideally linked to verified construction stages.
• What happens if the project stops, and how your money is protected.
• Transfer costs at completion: who pays the fees and taxes.
• Defects warranty and the snagging process.
• Assignment: whether you can sell your contract before completion, and any fee.
• Language and disputes: which version prevails and where disputes are heard.

Condo projects and villa projects are different

	Off-plan condo	Off-plan villa
What you end up with	A freehold unit title (Or Chor 2)	A land lease, a superficies and the house
When ownership is registered	When the building is finished and registered as a condominium	Often the lease is registered early and the house transferred at completion; check the order
Contract rules	Condo sale contracts must include certain buyer protections set by consumer protection rules	Ordinary contract terms, so your lawyer’s drafting matters more
Main risk	Delay and building management	The land arrangement, and who owns the house while it’s being built

Questions to ask every developer

• How many projects have you completed on Samui, and can I visit one?
• Who owns the land, and is it mortgaged? How will my unit or plot be released?
• Do you have the building permit, and the EIA if one is needed? Can I have copies?
• How is construction being financed?
• What happens to my payments if the project is delayed or stops?
• Who will manage the building or estate after completion, and what will the fees be?
• Is the rental programme licensed, and who pays any guarantee?
• How many units are sold, and how much foreign quota is left?

Judging a launch price

A launch discount is only real if the finished product is worth more. Compare:

• Price per square metre against finished resale units nearby, using the same measurement basis.
• What’s included: furniture, appliances, parking, pool access, transfer fees.
• The payment schedule: a lower price with most of the money due up front carries more risk than a slightly higher price paid on completion.
• The developer’s previous projects: what their units resell for today.

Payment schedules

A typical Samui off-plan schedule looks like this:

Stage	Typical share
Reservation	A fixed booking fee
Signing the contract	20–30%
Construction milestones (foundations, structure, roof, finishing)	30–50%, in stages
Completion and transfer	The balance

Schedules vary by project. The safest are those where most of the money is paid as verified work is completed, or at transfer. Be cautious of schedules that ask for most of the price before the structure is built.

Escrow and payment protection

Thailand has an escrow law, and some developers use an escrow agent or a project bank account. It’s still not standard on Samui. Where it isn’t offered, protection comes from the developer’s record, milestone payments and the contract terms. Ask how your payments will be held and used.

Rental guarantees and projected yields

Many projects advertise a guaranteed rental return, or a projected yield. Our rule:

Ask what the guarantee is paid from. A guarantee paid out of the purchase price is a discount in disguise. See our investment guide.

Currency planning

Instalments are usually priced in baht, while your money may be in pounds, dollars or euros. Over an 18–24 month build, exchange-rate moves can change your real cost noticeably. Some buyers transfer and convert early, others use a currency specialist to fix rates for scheduled payments. Either way, every instalment needs its own FET paperwork for a freehold condo.

Delays: what to expect and what to do

Some delay is common on island projects, because materials and labour arrive by ferry and the rainy season slows work. Keep records of every progress update, check progress against the payment schedule before each instalment, and know your rights under the contract before a delay becomes serious.

Handover and snagging

1. Pre-handover inspection. Walk the property with the developer, ideally with an independent inspector.
2. Snag list. Record every defect in writing, with photos.
3. Fix before transfer where possible, or agree a timetable in writing.
4. Transfer at the Land Office. Pay the balance and register the title, or the lease and superficies.
5. Defects period. Report further defects within the warranty period.

Selling before completion

Some contracts allow you to assign your contract to a new buyer before completion, often for a fee and with the developer’s consent. It can be a way to realise early gains, but don’t rely on it: resale before completion depends on the market, and many buyers prefer finished units.

Common mistakes

• Paying a large share before the building permit is issued.
• Signing the developer’s contract without your own lawyer.
• Treating a projected yield as a guarantee.
• Buying on renders without visiting a completed project by the same developer.
• No specification schedule, so finishes can be changed.
• Forgetting the costs at completion: transfer fees, sinking fund, furniture and the first year’s fees.

Off-plan on Koh Samui

We currently market condo and villa developments in Lamai, Bophut, Chaweng, Plai Laem, Bang Por, Maenam and Lipa Noi. Compare them on our developments page, or browse condos for sale and villas for sale.

Frequently asked questions

To weigh off-plan against completed property for your own plans, see our property investment consultancy.

General information only, not legal or financial advice.