Day: July 16, 2025

Property and Real Estate Disputes in Thailand. Thailand’s property and real estate sector, while robust and regulated, is often the source of legal disputes due to complex ownership structures, fragmented title documentation, zoning inconsistencies, and a mixture of statutory and customary land rights. Property-related conflicts typically arise from boundary disputes, breach of sale or lease agreements, unauthorized development, co-ownership issues, and foreign ownership violations. Disputes may be civil, administrative, or even criminal in nature depending on the underlying facts.

Given that Thailand follows a civil law system, resolution is heavily reliant on statutory interpretation, registered documentation, and the administrative acts of land and local authorities.

II. Legal Framework Governing Property Disputes

A. Civil and Commercial Code (CCC)

The CCC regulates land ownership, leases, servitudes, mortgage enforcement, and co-ownership. It also provides contractual remedies for non-performance.

B. Land Code B.E. 2497 (1954)

The Land Code governs title deeds, registration procedures, land office jurisdiction, and restrictions on land ownership—particularly for foreigners.

C. Land Development Act, Condominium Act, and Building Control Act

These statutes apply to specific types of real estate (e.g., condominiums or planned developments) and affect dispute rights between developers, co-owners, and third parties.

D. Administrative Law and Ministerial Regulations

Administrative law governs decisions made by local authorities, including land office registration errors, zoning, and permit revocations.

III. Common Types of Property Disputes

1. Ownership Disputes

These disputes involve conflicting claims over land or structures and can arise due to:

• Fraudulent transfers

• Forged signatures on sale documents

• Disputed inheritance

• Confusion between possession and registered ownership

Resolution generally requires:

• Title deed examination

• Chain of title tracing

• Verification of registration with the Land Office

Prescription under Thai law (adverse possession) can also be claimed if continuous, peaceful possession is shown for over 10 years (with a valid title) or 20 years (without).

2. Boundary and Encroachment Disputes

Often occur when neighboring landowners contest the physical boundaries indicated in title deeds, especially with older or lower-grade titles like Nor Sor 3 or Sor Kor 1. These titles may lack precise GPS mapping.

Typical issues:

• Fences or structures crossing boundaries

• Natural boundary changes (e.g., riverbanks)

• Government land (e.g., forest reserves) inadvertently encroached upon

Resolution tools:

• Land Department re-surveys

• Expert surveyor testimony in court

• Use of historical aerial photographs

Boundary disputes can escalate into criminal trespass charges under Sections 362–364 of the Thai Penal Code.

3. Breach of Sales and Purchase Agreements

Buyers and sellers often dispute:

• Non-transfer of ownership despite payment

• Misrepresentation of land title or zoning status

• Failure to disclose encumbrances or servitudes

• Defaulted payment obligations

Legal remedies include:

• Contract cancellation under CCC Sections 383–395

• Specific performance through court order

• Damages for losses suffered due to breach

All property sales over THB 500 must be in writing and registered at the Land Office to be enforceable.

4. Developer and Off-Plan Disputes

Buyers of off-plan units may initiate litigation for:

• Delay in construction

• Material deviation from approved plans

• Failure to obtain building permits or EIA approval

• Hidden defects after handover

Buyers may sue under:

• Contractual claims

• Product Liability Act B.E. 2551 (2008)

• Consumer Case Procedure Act B.E. 2551

Condominium buyers are protected by the Condominium Act, which imposes duties on the juristic person (e.g., management company) and the developer.

5. Lease Disputes

Real estate lease disputes typically concern:

• Unlawful early termination

• Subleasing without consent

• Failure to pay rent or maintain property

• Disputes over duration (particularly for 30-year leases with renewal clauses)

Leases over 3 years must be registered at the Land Office to be enforceable against third parties.

6. Foreign Ownership Violations

Under the Land Code and the Foreign Business Act, foreigners cannot own freehold land in Thailand unless granted an exemption. Disputes arise where:

• Thai nominees are used to circumvent laws (illegal and voidable)

• Foreigners attempt to control through company structures

• Transfers to foreign spouses lack proper disclaimers

Courts may void such arrangements, and criminal penalties may apply.

IV. Legal Process and Court Jurisdiction

A. Civil Court

Most disputes involving private contracts, land ownership, and lease rights are adjudicated in the Civil Court or Provincial Courts. Monetary claims influence court jurisdiction.

B. Central Intellectual Property and International Trade Court

Handles disputes involving foreign parties and can be used for cross-border investment conflicts.

C. Administrative Court

If the dispute involves wrongful conduct by a state agency (e.g., revocation of building permit, misregistration by Land Office), the Administrative Court has jurisdiction.

D. Alternative Dispute Resolution

Mediation is encouraged, and court-supervised mediation may be ordered before trial. Arbitration is uncommon unless contractually specified (e.g., in BOI-promoted projects).

V. Evidence and Expert Involvement

Property litigation in Thailand heavily depends on documentary and survey-based evidence. Common sources:

• Original title deeds and sale contracts

• Land Office registry records

• Survey maps (Chanote or NS3G)

• Photographic evidence of possession or encroachment

• Expert reports from licensed land surveyors

Courts may order an official re-survey or appoint court experts to interpret boundaries.

VI. Enforcement and Injunctive Relief

Once a judgment is obtained, the Legal Execution Department enforces it through:

• Seizure and auction of property

• Court-ordered title correction

• Injunctions against construction or sale

Interim injunctions (e.g., temporary halt to construction) may be granted if irreparable harm is demonstrated.

VII. Strategies for Risk Mitigation

1. Due Diligence:

   • Full title search

   • Review of land use restrictions

   • Surveyor site visit and title map comparison

2. Contractual Protections:

   • Warranty clauses on title and encumbrances

   • Dispute resolution clause (e.g., arbitration or Thai court jurisdiction)

   • Remedies for delay or breach

3. Title Upgrade or Consolidation:

   • Converting NS3G to Chanote

   • Consolidating fragmented plots to reduce boundary risks

4. Avoidance of Nominee Arrangements:

   • Use BOI or treaty exemptions where foreign control is needed

   • Use long-term lease + superficies instead of risky ownership proxies

VIII. Conclusion

Property and real estate disputes in Thailand often stem from misunderstandings of legal boundaries, land classification, contract enforceability, and foreign ownership limits. The resolution of such disputes requires navigating a complex intersection of civil law, land administration regulations, and court procedure.

Successful dispute resolution hinges on documentary evidence, clear contract terms, and strategic use of surveys and expert testimony. For foreign and local investors alike, proactive legal structuring, thorough due diligence, and strong contractual protections remain essential to minimizing exposure to costly litigation in the Thai property sector.