Real Estate Broker Agreement in Thailand: Protect Your Commission

A verbal agreement is legally binding, but extremely hard to prove when a dispute arises. This is something almost every real estate agent doesn't realize until they experience it firsthand.

This scenario is all too familiar: you find a buyer for a homeowner, show the property multiple times, negotiate until a price is agreed — and then suddenly the owner "closes the deal directly" with that same buyer, or brings in a close relative to "take over," to avoid paying commission. All while everything happened because you were the one who introduced that buyer from the start.

Many agents mistakenly believe that a LINE message or a verbal statement carries no binding effect at all, so they don't bother putting together a solid agreement. This article explains the real legal basis of a broker agreement, what the law actually allows versus what actually protects you in practice, along with a working exclusive listing agreement structure.

Summary: Thai law (Section 845 of the Civil and Commercial Code) does not require a broker agreement to be in writing — a verbal agreement can be legally binding. But "legally binding" is not the same as "actually collectible when a dispute arises" — because the burden of proof falls on the broker. You must be able to prove that you were the one who introduced the deal or arranged for the contract to succeed (Section 845), and what commission rate was agreed (Section 846). Without written evidence, the other party can easily deny or dispute the claim. This article explains the real legal basis, along with a sample exclusive listing agreement that clearly states the commission rate, scope of work, and success conditions — so you don't end up working for free once the deal actually closes.

What You Should Know

• A broker agreement is not required to be in writing under the law (Section 845), but having it in writing makes it much easier to prove your right when a dispute arises.
• The issue isn't "is a verbal agreement illegal?" — it's "can you prove the agreement was actually made?"
• If the commission rate isn't clearly set, the law (Section 846) defaults to standard market practice, which leaves plenty of room for interpretation and dispute.
• There are 4 main types of broker agreements, and an exclusive listing agreement gives the strongest protection for brokers worried about being cut out of a deal.
• A solid broker agreement needs to clearly specify 5 elements: the parties, scope of work, commission rate, success conditions, and the agreement term.
• A broker agreement can be signed electronically as normal, since it isn't on the list of documents legally required to be registered.

Last updated: August 2026. This article is reviewed at least once a year to reflect changes in the law and market practice in real estate.

Does a Broker Agreement Need to Be in Writing? (The Legal Answer)

Not required. Under Section 845 of the Civil and Commercial Code, the law doesn't prescribe a specific form for a broker agreement requiring it to be in writing. That means a verbal agreement — or even one made through LINE messages — can be legally binding as well.

Section 845 establishes that anyone who agrees to pay commission to a broker for introducing a party to enter into a contract, or for arranging for the contract to be made, is liable to pay that commission only when the contract is successfully concluded as a result of the broker's introduction or arrangement (ThaiEnglaw, Sections 845–849 and Legardy, Section 845).

The most critical condition in this section is the phrase "as a result." That is, the right to claim commission only arises when the sale or lease is completed because of the broker's actual introduction or arrangement — not merely from having had a conversation or shown the property, without any resulting outcome.

This principle is consistent with other legal commentary confirming that a broker agreement has no formal requirements — it can be made in writing or agreed verbally, and both carry equal legal weight (Drthawip, Title 16 — Brokerage, Sections 845–849; Udomkadee, Broker Agreement).

The common misunderstanding is thinking that because the law doesn't require a written agreement, there's no need to worry about documentation at all. But that's a dangerous assumption, because "legally binding" and "actually collectible when a dispute arises" are entirely different matters — which the next section explains.

Without a Written Agreement, Can You Still Claim Your Commission? (Where People Get It Wrong)

Legally, yes — but in practice, it's extremely hard to prove, because the entire burden of proof falls on the broker, not the property owner.

When a dispute arises, the broker must prove three things to the court at once: first, that they were genuinely the one who "introduced or arranged" the deal; second, that the sale or lease was completed "as a result" of what they did; and third, what commission rate was agreed. If no rate was clearly specified, Section 846 provides that the parties are deemed to have agreed implicitly based on the circumstances, and if no amount was set, it's presumed to follow standard practice (Interco.co.th, Do You Really Understand Brokerage?; ThaiEnglaw, Sections 845–849).

This is the real weakness of a verbal agreement or a casual LINE chat: there's no evidence confirming the agreed commission rate, no proof of which properties the scope of work covered, and — most critically — no proof that the buyer who ultimately closed the deal was the same person the broker originally introduced. These gaps make it easy for the property owner to dispute or deny the claim.

There is reference to a case in which the Supreme Court reportedly affirmed this principle in practice — as reported in a secondary legal source, Supreme Court Decision No. 4352/2545 (2002) (referenced from a secondary source; not yet verified against the original judgment), the Supreme Court reportedly ruled that a broker was entitled to commission at the verbally agreed rate (5%) when the sale was completed as a result of that broker's introduction, demonstrating that a verbal agreement can indeed be binding in practice. But this case had to go through the full court process to establish the facts — reflecting the real cost of not having something in writing: time, expense, and uncertainty of outcome. This case reference is drawn from a secondary source only and has not been verified against the Supreme Court's judgment database directly — it should be confirmed with a legal advisor before being cited in any real situation. (Summarized from Thanulegal, Commission Claim Cases)

This table makes clear that the issue isn't "is a verbal agreement illegal?" — it's "can you actually prove it when the time comes?" — an entirely different question.

Can online-signed documents be used as evidence in court? Read the full answer

How Many Types of Broker Agreements Are There? Choosing the Right One for Your Situation

There are 4 main types most commonly used by real estate agents, and each offers different protection depending on the situation.

• Non-exclusive listing agreement — the property owner can have multiple brokers working at the same time; whoever closes the deal first gets the commission. Suits properties that need to sell quickly, but the risk is that any given broker can easily be cut out.
• Exclusive listing agreement — only one broker has the right to sell or find a tenant for that property. Even if the owner closes the deal directly with a buyer the broker introduced, commission is still owed under the agreement. This is the format that gives the strongest protection for brokers who've previously been cut out of a deal.
• Buyer-agent agreement — the broker acts as the buyer's representative, helping find properties and negotiate on the buyer's behalf.
• Co-agency agreement — when two brokers work together on the same deal, one representing the seller and the other the buyer, splitting the commission as agreed.

In practice, real estate broker agreements typically run from 3 months to 1 year, and the commission rate commonly used in the market is 3% to 5% of the sale price, depending on the agreement between the parties (ThaiContracts, Thai-English Real Estate Broker Agreement; consistent with RE/MAX Thailand, Real Estate Exclusive Listing Agreement).

An important point to note: whichever type of agreement you choose, the commission rate should always be stated as a clear figure — never left as an implied understanding, because that's exactly the gap Section 846 leaves open for disputes.

Real Estate Broker Agreement Sample: 5 Must-Have Clauses

An agreement that actually protects your commission needs to clearly specify these 5 elements — never left open to interpretation.

1. Clearly identified parties — full names or corporate names of the property owner and the broker, with verifiable contact details.
2. Clearly defined scope of work — state that the broker's role is to introduce or arrange for the contract to be made, and specify exactly which property is involved, so there's no later dispute about whether a closed deal falls within the agreement's scope.
3. Commission rate as a clear figure — stated as a percentage or a fixed amount. This is the point that directly prevents the disputes Section 846 leaves open, because once it's clearly stated, there's no need to rely on interpreting standard practice.
4. Success conditions triggering the right to commission — clearly state when the commission is earned, such as upon completion of the property transfer or upon signing of the actual lease agreement, not merely upon negotiation. This aligns with the "as a result" principle under Section 845.
5. Agreement term and exclusivity conditions (if any) — clearly state the agreement's start and end dates, along with a clause stating that if a deal closes with a buyer the broker previously introduced within a certain period after the agreement expires, the broker still retains the right to commission — protecting against being "cut out" after the agreement ends.

These 5 elements matter especially now, because Thailand's real estate market is in a slowdown. The Fiscal Policy Office and the Real Estate Information Center project that in 2026, approximately 343,433 units will be transferred nationwide, worth roughly ฿963,553 million — the fourth consecutive year of decline (Krungsri Research, Housing in BMR 2025–2027).

The value of housing sales in Bangkok and its metropolitan area dropped from approximately ฿470 billion in 2022 to approximately ฿290 billion in 2025 (Marketingoops, Real Estate Outlook 2025–2026), and in the first 9 months of 2025 there were only 170 new project launches, totaling 28,853 units worth ฿193,713 million — down 32% in number of projects, 30% in units, and 29% in value year-on-year (LWS.co.th, Housing Market — First 9 Months of 2025).

In a market with over 61,027 licensed real estate brokers and agents registered nationwide (InfobelPRO, Real Estate Agents in Thailand), competition is intensifying while the number of deals actually closing is shrinking. That means each deal's commission matters more than ever — and letting it slip away for lack of solid documentation is a risk you can't afford in a market like this.

Can You Use an Electronic Agreement? Signing a Broker Agreement Online

Yes. A broker agreement isn't on the list of documents legally required to be made in writing and registered with a government agency, so it can be signed electronically as normal. No law sets a specific form requirement for broker agreements, beyond the general contract principles under Sections 365 to 370 of the Civil and Commercial Code (ThaiContracts, Real Estate Broker Agreement).

Electronic signatures are legally binding in Thailand under the Electronic Transactions Act B.E. 2544 (2001) (ETA) (as amended in 2008 (B.E. 2551)). Read the full guide on whether an e-signature is legal in Thailand. For brokers racing against time, sending a link for the property owner to sign an exclusive listing agreement on their phone right after a verbal agreement is reached helps reduce the chance the other party changes their mind or approaches another broker before the document is actually signed.

One point worth understanding correctly: identity verification tools like OTP and the signing audit trail are tools that help strengthen the evidence of who signed and when — reducing disputes over forgery or impersonation — but they aren't a guarantee of case outcomes or a substitute for case-specific legal advice. For complex disputes over commission, consult a lawyer or legal advisor directly.

If you want to start using a broker agreement that includes all 5 elements above from day one, without drafting the document yourself every time, try Jabmue free, with templates for listing agreements, exclusive listing agreements, and buyer-agent agreements, designed specifically for real estate agents.

Frequently Asked Questions

Does a broker agreement need to be in writing?

Not legally required, under Section 845. But in practice, having a written agreement makes it far easier to prove your right when a commission dispute arises.

What percentage is the real estate commission in Thailand?

Typically 3% to 5% of the sale price, depending on the agreement between the parties and the type of property. The agreed figure should always be clearly stated in the agreement — never left as an implied understanding.

If I get stiffed on a land sale commission, can I sue?

You can sue under general legal principles, but you must prove to the court that you genuinely introduced or arranged for the deal to succeed. The more written evidence you have clearly stating the commission rate and scope of work, the easier it is to prove your right.

What is an exclusive listing agreement, and how does it differ from a regular broker agreement?

An exclusive listing agreement gives only one broker the right to sell or find a tenant for that property. Even if the owner sells directly to a buyer the broker introduced, commission is still owed under the agreement — unlike a non-exclusive listing agreement, where the owner can have multiple brokers working at the same time.

Can a broker agreement be signed electronically?

Yes. A broker agreement isn't on the list of documents legally required to be registered with a government agency, so it can be signed online as normal under the Electronic Transactions Act B.E. 2544 (2001).

Conclusion

A real estate broker agreement doesn't legally need to be in writing — but in practice, it's the one thing that protects your commission when a deal goes well and the other party changes their mind. Here are the key points to remember:

• A verbal agreement is legally binding, but extremely hard to prove when a dispute arises, because the burden of proof falls on the broker.
• A solid agreement needs to specify 5 elements: the parties, scope of work, commission rate as a clear figure, success conditions, and the agreement term.
• Choose the agreement type that fits your situation — especially an exclusive listing agreement if you've been cut out of a deal before.
• Electronic signatures can be used for broker agreements as normal — convenient and legally binding.

If you're about to close a new deal and need the property owner to sign an exclusive listing agreement before they change their mind, try Jabmue free to create and send a listing agreement, exclusive listing agreement, or buyer-agent agreement within minutes, or see Jabmue's pricing plans to find the plan that fits your deal volume.

After closing a lease deal, many agents still need to handle follow-up documents like the Condo Lease Agreement guide and the Lease Termination Notice guide, which come up just as often in day-to-day real estate work.

This article provides general information for educational purposes only and does not constitute case-specific legal advice. For disputes or your specific situation, please consult a lawyer or legal advisor directly.