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Article 4: Escrow in a Thai Land Deal: How My Money Was Protected

Never hand a seller the full purchase price before the lease is registered. In my deal, my attorney held the money in escrow, so neither the seller nor I could touch it until the lease and transfer were complete. Escrow protects both sides: I would not pay for a lease that was never registered, and the seller knew the money was ready.

How mine worked

  • My attorney held the escrow. The money sat with a neutral party, not with me and not with the seller.
  • Payment happened at the land office. The seller was paid only when the lease was registered and the transfer was complete.
  • I did not need to attend. My attorney acted for me under a power of attorney (see Article 5).

What it cost

My attorney charged a 1% escrow fee. From what I researched, that is a fairly standard rate for a Thai attorney holding escrow. The 1% applies to the money the attorney actually holds and pays out: the purchase price minus the 10% deposit already paid to the seller. For a generic example, on a 10,000,000 THB price, the deposit is 1,000,000 THB, the amount in escrow is 9,000,000 THB, and the fee is 90,000 THB. Rates vary, so get the fee in writing.

Who should hold the original title deed?

The original chanote should be held by you for safekeeping, or deposited in a bank's safekeeping, and releasing it should require both parties' written consent every time.

My situation is different. My plot is part of a large parcel that is being subdivided into many plots, and it is not safe for the owner to let one buyer hold the single chanote that covers every plot. Once a separate chanote is created for each plot, mine will be held the safe way described above.

If you are buying part of a larger parcel, ask your attorney whether your plot will get its own chanote and when, who holds the original in the meantime, and what is in writing about releasing it.

Checklist: what to confirm about escrow

  • Who holds the funds, and that it is your own attorney or a truly neutral party
  • The escrow fee, what it is calculated on, and when it is paid
  • The exact conditions that trigger release of the money
  • How the seller will be paid (for example, a cashier's check at the land office)
  • What happens to the funds if the deal falls through
  • A written receipt or confirmation that your funds were deposited
  • Who holds the original title deed, and the plan if your plot is still being subdivided

Next step

The last step is closing day at the land office. Read Article 5, and download the free guide for all five steps.

This is my personal experience, not legal advice. Always use your own Thai attorney.

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