Are there any restrictions on the amount of deposit in the preliminary agreement?

In Thailand, there are no specific regulations regarding the maximum amount of the deposit in a preliminary agreement, but general guidelines on practices related to such agreements apply.

Deposit as part of the preliminary agreement: In a preliminary agreement, the deposit serves as security for both parties involved in the transaction. The deposit amount usually ranges from 5% to 10% of the property value, but it may vary based on negotiations between the parties.

Market practice: While the deposit is not formally legally restricted, in practice, it is an amount considered fair and aligned with market customs. Typically, this is a sum ranging from 5% to 10% of the property price, ensuring a serious commitment to the transaction.

Deposit refund rules: If the transaction does not proceed due to one party’s fault, the deposit may be refunded or retained, depending on the terms of the agreement. If the seller fails to fulfill the agreement terms, they are usually obligated to return the deposit in double the amount.

No formal limits: There are no statutory limits on the maximum deposit amount in Thailand, but this amount should be agreed upon in the preliminary agreement and be reasonable in the context of the property’s value.

It is recommended, especially if you are not a Thai citizen, to consult a real estate lawyer before signing a preliminary agreement to ensure the terms are appropriate and fair.