Understanding Property Deposits: Why 10% Matters in Pattaya's Real Estate Market

When I sit down with buyers looking to secure a property in Pattaya, one of the first things we talk about is the deposit. It surprises some people, but here in Pattaya, the industry standard is a 10% deposit. It’s not just a number pulled out of thin air—it serves a very real purpose in protecting both buyer and seller, and keeping the transaction on track.

The Importance of the 10% Deposit

From my perspective, that 10% is more than just a financial transfer—it’s a declaration. It shows the buyer is serious, and it gives the seller peace of mind. Once that deposit is made, the property comes off the market. That means the seller is no longer entertaining other offers, so this gesture carries weight. Without it, sellers would be left vulnerable to time-wasters and window shoppers, and buyers could easily back out without consequence. That’s not good for anyone.

By Default, Deposits Are Non-Refundable

I want to be absolutely clear on this point: in Pattaya, property deposits are non-refundable by default. That means unless it is explicitly agreed in writing at the time of payment that the deposit is refundable, it is legally treated as non-refundable. We usually issue a receipt when a deposit is taken, and that receipt almost always states “non-refundable” in black and white. But even if that wording does not appear on the receipt, the legal default under Thai law is that a deposit is non-refundable unless otherwise stated.

This is consistent with standard practice under the Thai Civil and Commercial Code.

Under Thai law, specifically the Civil and Commercial Code Sections 672 and 673, a monetary deposit is considered a form of depositary contract. The recipient is legally entitled to use the money, and there is no obligation to return the exact deposit unless a specific condition for refundability has been written into the agreement.

A common misunderstanding I come across is the idea that because a contract hasn’t yet been drawn up or signed, the buyer is somehow entitled to their deposit back. That is simply not the case. In local practice, it is entirely normal to take a deposit well before the formal contract is prepared. The process generally works like this: a deposit is paid to secure the deal, and then within the following days or weeks, the sales agreement is drawn up. That contract may take time due to legal clauses, translations, or negotiation of terms.

But let me be crystal clear—the absence of a final contract does not entitle the buyer to a refund. The deposit and the contract are separate instruments. Once the deposit is paid, the seller has a legal right to retain it unless a written agreement states otherwise.

Why Deposits Are Non-Refundable

I’ve had this conversation with clients many times: “Why can’t I get my deposit back if I change my mind?” And the honest answer is—because it’s not fair to the seller. In most cases, the seller has already begun preparing for the transfer. Maybe they’ve sold the furniture separately. Maybe they’ve flown in just to complete the paperwork. Maybe they’ve missed out on other offers. That 10% isn’t just sitting there—it’s covering real-world costs, disruptions, and lost opportunities. That’s why the deposit is almost always non-refundable.

Real Scenarios That Emphasize the Need for a Deposit

Let me give you a few real-world examples. I’ve had sellers who removed all their belongings from a property because the buyer wanted it empty. Then the buyer changed their mind. Now the seller’s stuck without a deposit and without their original setup. Or in other cases, sellers have booked flights, taken time off work, or even cancelled rental agreements—all on the assumption that the sale would go ahead. These are the kinds of risks the deposit is designed to mitigate.

When a Partial Refund Might Be Fair

That said, I always encourage transparency and clear terms from day one. If a buyer wants to make the deposit conditional—say, on seeing certain paperwork or proof of ownership—we can structure the agreement accordingly. In those rare cases where the seller doesn’t meet the agreed terms, a partial refund can sometimes be justified. But unless that’s discussed up front and written into the deal, the default position is that the deposit is non-refundable.

Conclusion

In short, deposits matter. They protect both sides and ensure that everyone is acting in good faith. From my experience here in Pattaya, the 10% standard works well—but only when buyers fully understand what it represents. So before you put money down, make sure you’re ready to commit. It’s not just about securing a property—it’s about showing that you’re serious.

If you’re ever unsure, come in and talk to us. We’re here to guide you through it all, with clarity and honesty.

By Alex Stein, Alan Bolton Property Consultants