Practical guide
Property Scams in Thailand and How to Avoid Them
Quick answer
The five most common Thailand property scams as of Q3 2026 are the duplicate sale of a unit already under contract, the leasehold marketed as freehold, the nominee shareholder company, the off-plan escrow diversion, and the title-deed encumbrance concealment. Each is avoidable with a Thai-qualified lawyer, an in-person Land Department title check, a registered escrow account, and independent due diligence. Every scam on this list has a specific counter.
Key facts
| Item | Value |
|---|---|
| Most common scam in Hua Hin | Title encumbrance concealment |
| Counter to encumbrance concealment | In-person Land Department title check |
| Off-plan escrow requirement | Condominium Act 2016 amendment |
| Nominee shareholder status | Contrary to Foreign Business Act |
| Due diligence cost | 50,000 to 150,000 THB |
The duplicate sale of a unit already under contract
A unit or villa is shown to two buyers at the same time, and both pay a deposit. The first to transfer at the Land Department takes the title; the second loses the deposit and the unit. The counter is a deposit held in escrow with a release clause conditioned on the seller being able to transfer clean title, and a short option period of 30 days. A deposit paid to the seller personal account rather than a registered escrow is the single biggest flag. Our practice holds every deposit in a lawyer escrow account until transfer.
The leasehold marketed as freehold
A villa is advertised as freehold when in fact the foreign buyer can only take a 30 year leasehold, because the land cannot be owned by a foreigner in their own name and the company structure is either not available or not wanted. The counter is the ownership structure in writing before any deposit, and a title check that confirms what the seller can actually transfer. The phrase "freehold villa" in marketing should always be tested by the question, freehold in whose name.
The nominee shareholder company
A Thai company is set up with Thai shareholders who have injected no capital and have no real role, holding the majority shares so a foreign buyer can control the land. The Foreign Business Act treats this as a way around the land ownership restriction, and the Commerce Ministry has enforced it more actively since 2016. We do not recommend this structure, and we do not recommend setting up a company as the cure for it. The counter is a registered leasehold, or a condominium in your own name, checked by an independent Thai lawyer.
The off-plan escrow diversion
Off-plan payments are diverted to the developer operating account rather than held in a bank escrow account released against construction milestones. The 2016 amendment to the Condominium Act requires condominium off-plan payments to be held in escrow with a scheduled commercial bank. House projects on titled land are not covered by this requirement, which is where most Hua Hin pool villa off-plan scams sit. The counter is to confirm the escrow bank, the account name, and the release triggers before the first payment, and to refuse stage payment schedules that front load the developer.
The title encumbrance concealment
A Chanote carries a mortgage, a lease, a superficies, a usufruct, or a court order on its reverse side that the seller does not disclose. The buyer discovers the encumbrance at the Land Department, by which point the deposit is paid and the calendar is committed. The counter is the in-person Land Department title check before the deposit, carried out by the buyer lawyer, with the seller identification. A faxed or photographed copy of the Chanote is not sufficient, because temporary deposits exist and only the in-person check on the day catches them.
Three further flags worth naming
A unit price materially below the Land Department appraised value with no explanation. An agent who will not let you use your own lawyer. A developer who has delivered two projects late and is launching a third. None of these is a scam in itself, but each is a flag that should trigger deeper due diligence, not a faster deposit. Our due diligence checklist guide is the line by line counter and we refuse to complete a transaction where it cannot be met.
Sources
This guide is published as of the updated date shown above and reflects Thai land and tax rules current at that time. It is general information and not specific legal or tax advice. For a transaction, instruct a Thai-qualified lawyer or accountant.
Frequently asked questions
What is the most common property scam in Hua Hin?
Title encumbrance concealment, where a Chanote carries a mortgage, lease, or court order that the seller does not disclose. The counter is an in-person Land Department title check by the buyer lawyer before the deposit, with the seller identification present.
How do I protect my deposit on a Thai property purchase?
Hold the deposit in a lawyer escrow account with a release clause conditioned on the seller being able to transfer clean title. Never pay a deposit to the seller personal account. A 30 day option period keeps the exposure short.
Is a nominee shareholder company structure safe?
No. Nominee shareholders are contrary to the Foreign Business Act and have been enforced against since 2016. We do not recommend setting up a Thai company to hold land, with nominees or without them. Use a registered leasehold or a condominium in your own name.
Are off-plan payments protected in Thailand?
Condominium off-plan payments must be held in a bank escrow account under the 2016 Condominium Act amendment. House and villa off-plan projects on titled land are not covered by this requirement, which is the higher risk. Always confirm the escrow bank, the account name, and the release triggers before the first payment.
How can a leasehold be marketed as freehold?
A villa where the foreign buyer can only take a 30 year leasehold is sometimes advertised as freehold, relying on the shorthand that the land is freehold in a company name. The counter is the ownership structure in writing before any deposit, and a title check that confirms what the seller can actually transfer to the buyer.
Can a copied Chanote be trusted for a title check?
No. A faxed or photographed copy does not catch temporary deposits or undisclosed encumbrances. Only the in-person check at the Land Department, with the seller identification on the day, catches the reverse side encumbrance record and the current ownership.
What does a good due diligence cost and take?
A complete due diligence costs 50,000 to 150,000 THB in 2026 and takes 7 to 14 working days. It is the most reliable single investment in the transaction and the line by line counter to every scam on this list.
Should I use the developer lawyer for a purchase?
No. Using the seller or developer lawyer is a conflict of interest. Use an independent Thai-qualified conveyancer for title verification, the contract, and the Land Department representation. Most lawyers work to a flat rate of 50,000 to 100,000 THB.