Common issues when buying condos in Asia

Construction delays

Delays are the most commonly reported off-plan risk in both countries. Causes cited across the industry include weather (particularly monsoon and typhoon seasons), supply chain disruption, contractor disputes, and simple over-promising at the sales stage. One Thailand-focused industry source estimated that 60–70% of off-plan projects experience some delay, with overruns commonly running 3–12 months; we could not independently verify this figure against an official source, so treat it as an industry estimate rather than a confirmed statistic. Whatever the true rate, the practical takeaway is the same: your contract's completion-date and penalty clauses matter more than the marketed handover date.

The escrow gap in Thailand

Thai law does not require developers to hold buyer payments in a third-party escrow account. Milestone payments typically go directly into the developer's own bank account, which means buyers carry the developer's insolvency risk with no statutory protection — in a dispute, a buyer who has already paid a large share of the price is in a structurally weaker negotiating position. Some developers voluntarily offer escrow through a bank or law firm; ask for this explicitly and get it in writing.

Statutory buyer protection in the Philippines

By contrast, Presidential Decree No. 957 gives Philippine buyers a stronger statutory footing: developers must be licensed to sell (which requires a performance bond) before marketing units, and installment payments cannot be forfeited if a buyer suspends payment, after due notice, because the developer failed to develop the project as approved. This is a genuine structural difference between the two markets, not just a difference in developer quality — see our Thailand and Philippines ownership guides for the full legal detail.

Foreign quota misrepresentation

Both countries cap foreign ownership per project — 49% of floor area in Thailand, 40% in the Philippines — and quota is allocated on a first-registered basis. A unit sold to you as "freehold-eligible" can still end up quota-blocked at registration if the building's foreign allocation filled up in the meantime. Always get written, current quota confirmation from the developer or (in Thailand) the condominium's juristic person before paying a reservation fee, not just a verbal assurance from a sales agent.

The finished product differing from the marketing

Renders, show units, and brochures are always the best-case version of a project. Ceiling heights, finishes, view corridors, and common-area quality can differ from what was presented at point of sale. Contract protection here comes from a tightly written, itemised specification schedule attached to the sale and purchase agreement — not from the marketing brochure — and, where possible, from visiting the developer's previously completed projects before signing.

Building-level costs buyers overlook

New buyers often focus entirely on the unit price and miss building-level factors that affect long-term cost and liveability: the condominium's sinking fund balance, any planned special assessments for major repairs, outstanding disputes within the owners' association, and the building's history of maintenance. These are worth asking about specifically, both for owner-occupiers and for anyone planning to rent the unit out.

Title and encumbrance issues

Before completion, your lawyer should conduct an independent title search — confirming the Chanote is clear of mortgages or liens in Thailand, or that the Condominium Certificate of Title is properly issued and unencumbered in the Philippines — rather than relying on the developer's assurance that the title is clean.

Resale tax exposure

Selling within a short holding period can trigger additional taxes in both markets (Specific Business Tax in Thailand within roughly five years of purchase; capital gains and documentary stamp tax considerations in the Philippines). These materially affect short-term investment returns and are frequently underestimated at the point of purchase. Confirm current rates with a local tax adviser, as this guide is not tax advice.

A short due-diligence checklist

• Confirm foreign quota availability in writing, not verbally
• Confirm what payment protection (if any) applies to your deposit and installments
• Get the specification schedule into the contract, not just the brochure
• Check the developer's history of actual handover dates vs promised dates
• Independent title search before completion
• Independent legal review of the sale and purchase agreement before signing or paying

Sources

• Hua Hin Japan, "Buying Off-Plan Condo in Hua Hin: Risks & Rewards 2026" (delay estimate, flagged as unverified)
• Samuiforsale, "Paying for an off-plan condo in Thailand"
• Presidential Decree No. 957 (full text)
• Bamboo Routes, "Buying property in Thailand: risks, scams and pitfalls (2026)"
• Siam Legal International, "Common Pitfalls and Mistakes Foreigners Make When Buying Real Estate in Thailand"
• Global Law Experts, "How To Navigate Off-Plan Property Disputes"
• Aster of Asia, "Thailand Condo Foreign Quota: 49% Rule Explained 2026" (resale tax)