When renting or purchasing a property in Thailand, engaging a trusted, properly registered, and professionally trained real estate agency is not just a matter of convenience—it is an important step to protect your interests and reduce risk.
Unlike some countries, Thailand does not have a strict licensing or mandatory examination system for real estate agents. This means that while there are many professional and ethical agencies in the market, there are also freelancers or unqualified individuals operating without proper structure, training, or accountability.
Understanding the difference can help tenants and buyers avoid unnecessary disputes, financial losses, and legal complications.
The Role of a Professional Real Estate Agency
A professional real estate agency acts as a neutral and experienced intermediary between the landlord and the tenant or buyer. When issues arise—such as contract clarification, handover disputes, or misunderstandings regarding property conditions—the agent is often the best first point of contact to help resolve the matter.
Established agencies understand:
- Common market practices in Thailand
- Typical lease and sale structures
- Rights and responsibilities of both landlords and tenants/buyers
- Practical “do’s and don’ts” under Thai real estate and civil law
This experience is especially important for foreign tenants or buyers who may not be familiar with local practices.
No Strict Licensing Requirement in Thailand – Why This Matters
In Thailand, there is currently no mandatory real estate license or government examination required to operate as a real estate agent. As a result:
- Freelancers can enter the market easily
- Some agents may lack legal knowledge or professional training
- Some foreigners may operate without proper work authorization
For this reason, it is highly advisable to conduct basic background and profile checks before engaging any real estate agent.
What to Check Before Engaging a Real Estate Agent
1. Company Registration and Business Objective
Ensure that the agent represents a properly registered Thai company, and that real estate agency services are clearly stated as one of the company’s business objectives.
You may engage a law firm or accounting firm to verify:
- Company registration status
- Directors and shareholders
- Business objectives
2. Professional Training and Certification
While not legally mandatory, professional training reflects credibility and professionalism.
For example, agents who have completed recognized industry training (such as TREBS or equivalent programs) are generally more familiar with:
- Thai real estate laws
- Standard lease and sale practices
- Ethical conduct in property transactions
3. Foreign Agents Must Have Proper Work Authorization
If the agent is a foreigner, ensure that:
- They hold a valid work permit
- They are working under a Thai registered company
Operating or providing services without a work permit is illegal under Thai labor law.
Real Estate Agency Company vs Freelancer
In Thailand, agents typically fall into two categories:
- Agency Companies
- Freelance Agents
While freelancers may appear more flexible, agency companies generally provide greater reliability and continuity.
A company offers:
- A stable business presence
- Backup support if one agent is unavailable
- Accountability if issues arise after the transaction
Freelancers, on the other hand, may leave the industry at any time. If they become unreachable, tenants or buyers may be left without support, especially when post-handover issues occur.
Important Things to Look Out For (Red Flags)
1. Never Sign a Lease Agreement with an Agent
A lease or sale agreement must be signed directly with the property owner (landlord or seller).
Before signing, ensure that:
- The landlord is the legal owner of the property
- Ownership has been properly verified (e.g. title deed or authorized representative)
An agent should facilitate, not replace, the landlord in legal agreements.
2. Beware of Marked-Up Prices
Some unethical agents may inflate the rental or sale price to earn extra profit.
Best practice in Thailand:
- The price should be transparent
- The price offered to you should match the landlord’s price
- The agent earns commission from the landlord, not by marking up the property price
Price manipulation is considered unprofessional and inappropriate conduct.
3. Never Transfer Rent, Deposits, or Booking Fees to an Agent
All rental payments, deposits, or booking fees should be transferred directly to the landlord’s bank account, unless clearly stated otherwise in a legally verified structure.
In Thailand:
- Agents are typically paid a standard market commission by the landlord upon successful completion of the deal
- Agents should not collect rent or deposits from tenants or buyers
Transferring money to an agent increases the risk of fraud, as there is no guarantee the funds will be forwarded to the landlord.
Final Thoughts
Engaging a trusted and professional real estate agency in Thailand protects both tenants and buyers from unnecessary risk. While the market is open and flexible, this also means due diligence is essential.
By choosing a properly registered company, verifying credentials, and understanding correct market practices, you can ensure a smoother, safer, and more transparent property transaction.
