When you’ve found the perfect Phuket villa or the ideal condo in Phuket, you’ll want to ensure it doesn’t slip through your fingers. A Reservation Agreement is the first formal step in securing a property and signalling your serious intent to buy.

Whether you’re purchasing from a developer or a private seller, understanding what’s in a reservation agreement — and what your rights are — is crucial to protecting your interests.

What Is a Reservation Agreement in Phuket Property Transactions?

A Reservation Agreement is a short, simple document signed by the buyer and seller (or developer) that confirms your intention to purchase a specific property. It removes the property from the market temporarily, giving you time to conduct due diligence and prepare for the main contract.

What’s Included in the Reservation Agreement?

The agreement will typically outline:

  • The property details (location, unit number, size, etc.)

  • The price agreed upon

  • The reservation fee (usually 1–5% of the total price)

  • A timeframe for signing the Sales & Purchase Agreement (SPA)

  • Whether the reservation fee is refundable or non-refundable

While some developers require higher reservation fees, reputable agents will always explain the terms upfront and help you negotiate if needed.

You may find this article of interest to prevent you from overpaying for your condo in Phuket: 

How to Avoid Overpaying for a Condo in Phuket – A Smart Buyer’s Guide

And this article is also highly beneficial, a complete guide on how to buy a condo in Phuket, which is great for anyone wanting the full journey from reservation to ownership: 

Buying a Condo in Phuket – The Ultimate 2025 Guide for Foreign Buyers

Is the Reservation Fee Refundable?

This varies. Most developers and sellers will state that the reservation fee is non-refundable. However, in some cases — such as failed due diligence or visa rejections — there may be exceptions.

It’s essential to have this clearly defined in the agreement before you pay anything. And ideally, you should review the terms with your legal representative in Phuket.

Why It’s So Important to Review the Agreement Carefully

Once you’ve signed and paid the reservation fee, the property is generally taken off the market. But:

  • If the agreement is poorly worded, it could give the seller an easy exit

  • If there are unfair penalties, you may lose your deposit

  • If you don’t follow through on time, the seller may have the right to cancel the agreement

Never sign without understanding the full legal implications.

How the Reservation Agreement Protects Buyers

A well-written agreement protects you by:

  • Locking in the agreed price

  • Preventing the seller from negotiating with other buyers

  • Allowing you time for legal checks, valuation, and financing

  • Setting the tone for a transparent and professional transaction

Buying Off-Plan? Be Extra Careful

If you’re buying off-plan from a developer, make sure the reservation agreement:

  • References the expected handover date

  • Includes the developer’s refund policy if the build is delayed

  • Mentions what happens to the deposit if you back out during due diligence

Need Help Navigating the Fine Print?

Don’t take risks with legally binding documents — especially in a foreign country.

For anyone who wants to find out about the safest ways for buying property in Phuket, you may want to read our extremely comprehensive Phuket Property Guide. 

Get in touch with our Phuket-based experts for help reviewing your agreement before you sign.
Call Now On: +66 9484 11918

Frequently Asked Questions – Reservation Agreements in Phuket

How much is the typical reservation fee in Phuket?
Most reservation fees range between THB 50,000 and THB 500,000, depending on the price of the property. For luxury villas or large condos, it could be higher — usually around 1–5% of the total price.

Is the reservation agreement legally binding?
Yes, it is a legal document — even if it’s short and simple. It obligates both parties to proceed in good faith, and often includes a non-refundable fee.

What happens if I decide not to go ahead with the purchase?
In most cases, the seller will retain the reservation fee. That said, if the agreement includes a refund clause (e.g. conditional on due diligence), you may get part or all of your fee back.

Can I reserve a property without visiting Phuket?
Yes. Many foreign buyers reserve remotely, especially for off-plan developments. In these cases, the agreement and payment can be done via email and international transfer.

Should I have a lawyer review the reservation agreement?
Absolutely. Even though the document is short, it can carry important legal consequences. Always have a local lawyer or agent double-check the terms.

Final Thoughts

A Reservation Agreement is a smart way to secure your dream property in Phuket while protecting your interests. But like any legal step, it should be handled with care.

Whether you’re buying a condo in Bang Tao or a hillside villa in Kamala, we’ll help you make the right move — the right way.

Get in touch for expert advice on all aspects of Phuket property. 
Call Now On: +66 9484 11918