Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand

Property and real estate disputes in Thailand are governed by a combination of civil law principles, codified statutes, and administrative regulations, primarily under the Civil and Commercial Code, Land Code B.E. 2497 (1954), and relevant Ministerial Regulations. The judicial resolution of such disputes falls within the jurisdiction of the Thai civil court system, though some matters involve coordination with the Land Department, Municipal Authorities, or the Administrative Court, depending on the nature of the conflict.

Foreign nationals face additional complexity due to foreign ownership restrictions, nominee shareholding issues, and limited rights to hold or use land—factors that often give rise to contested claims and litigation.

This article provides an in-depth legal and procedural analysis of property and real estate disputes in Thailand, examining causes of action, statutory rights, evidentiary burdens, and enforcement processes.

1. Governing Laws and Jurisdiction

1.1 Primary Statutes

  • Civil and Commercial Code (Book IV: Property Law & Book V: Specific Contracts)

  • Land Code B.E. 2497 (1954)

  • Land Development Act B.E. 2543 (2000)

  • Condominium Act B.E. 2522 (1979)

  • Building Control Act B.E. 2522

  • Foreign Business Act B.E. 2542 (for nominee-related land disputes)

1.2 Judicial and Administrative Bodies

  • Civil Courts and Provincial Courts: General jurisdiction over real property disputes

  • Central Intellectual Property and International Trade Court (IP&IT): For cross-border transactions or foreign investment issues

  • Administrative Court: For disputes involving land-use permits, environmental impact assessments (EIAs), or zoning

2. Common Types of Property and Real Estate Disputes

2.1 Ownership Disputes

  • Conflicting title deeds or claims of adverse possession

  • Fraudulent transfer or double-selling of land

  • Co-ownership conflicts, especially post-inheritance or divorce

2.2 Boundary Disputes

  • Overlapping land measurements or unclear demarcation

  • Disputes arising from Nor Sor 3 titles with approximate boundaries

  • Unregistered servitudes or right-of-way conflicts

2.3 Breach of Sale and Purchase Agreements

  • Failure to transfer title after payment

  • Buyer default and deposit disputes

  • Seller misrepresentation regarding zoning, encumbrances, or ownership

2.4 Land Lease Disputes

  • Unlawful termination of lease

  • Disputes over sublease, renewal rights, or lease registration

  • Foreign lessee challenges in long-term lease arrangements

2.5 Construction and Development Disputes

  • Illegal or non-compliant construction

  • Delays in delivery of units (especially off-plan condo units)

  • Quality defects and warranty enforcement

2.6 Condominium-Related Disputes

  • Common area usage and maintenance fee allocation

  • Juristic person disputes with unit owners

  • Voting irregularities in co-owner meetings

3. Legal Instruments and Evidence in Property Disputes

3.1 Title Deeds and Land Documents

  • Chanote (Nor Sor 4 Jor) – Best evidence of ownership

  • Nor Sor 3 Gor / Nor Sor 3 – Conditional possession with lower evidentiary strength

  • Possessory rights (Sor Kor 1) – Weak claims; often challengeable

3.2 Supporting Documents

  • Sale and purchase agreements

  • Receipts or proof of payment

  • Power of attorney (if title transfer was delegated)

  • Land surveys and site plans

  • Witness testimony and photographic evidence

📌 Land Office registration records and cadastral maps are often decisive in proving ownership and boundaries.

4. Procedural Mechanism for Dispute Resolution

4.1 Filing a Civil Suit

  • Plaint (คำฟ้อง) filed in the court where the property is located

  • Court fees: Approx. 2% of claim value, with caps and exemptions for certain actions (e.g., land recovery)

4.2 Urgent Injunctions (Temporary Measures)

  • In cases of trespass or imminent damage, the plaintiff may request:

    • Interim injunction to halt construction or sale

    • Seizure or preservation of the land or disputed area

    • Eviction orders pending trial outcome

4.3 Burden of Proof

  • In ownership disputes, the burden lies with the plaintiff

  • The court may order site inspections, expert testimony (e.g., surveyors), or Land Office reports

5. Foreigners and Land Disputes

5.1 Ownership Restrictions

  • Foreigners are generally prohibited from owning land in Thailand (Land Code, Section 86), except:

    • Through BOI promotion or IEAT projects

    • Under limited exceptions (e.g., investment of THB 40 million for 5 years)

    • U.S. nationals under the Treaty of Amity (still limited)

5.2 Leasehold and Nominee Disputes

  • Long-term lease (30 years) is a common workaround, but disputes arise over:

    • Renewal clauses

    • Lease registration and enforceability

    • Alleged nominee structures (land held in Thai name for a foreigner)

🚫 Nominee land holding is illegal, and courts will not protect disguised foreign ownership.

6. Enforcement and Remedies

6.1 Remedies Available in Court

  • Specific performance (transfer of title, registration of lease)

  • Damages (for breach of contract or misrepresentation)

  • Restitution (return of land or value)

  • Injunctive relief (halt ongoing trespass or construction)

6.2 Execution of Judgment

  • Final judgment submitted to Legal Execution Department (LED)

  • LED may:

    • Evict unlawful occupiers

    • Seize and auction land to satisfy debt

    • Register title changes at Land Office

7. Alternative Dispute Resolution (ADR)

7.1 Mediation

  • Many Thai civil courts offer pre-trial mediation

  • Mediators may be judges or trained legal officers

  • Settlements are legally binding if recorded by the court

7.2 Arbitration

  • Parties may contractually agree to resolve real estate disputes through arbitration

  • Enforced under the Arbitration Act B.E. 2545 (2002)

  • May involve the Thai Arbitration Institute (TAI) or international bodies (e.g., SIAC, ICC)

8. Statute of Limitations

Type of Dispute Limitation Period
Breach of sale/purchase contract 10 years
Lease-related claims 10 years
Ownership disputes (no written contract) 1–10 years (depends on cause)
Damages from construction defects 5–10 years
Adverse possession claims 10–20 years

⚖️ Time begins from the date of breach, discovery of fraud, or expiration of performance deadline.

9. Practical Issues and Risk Mitigation

  • Many disputes arise due to incomplete due diligence before purchase or lease

  • Verbal agreements are not enforceable for land transactions under Thai law

  • Land measurements and boundaries can differ from reality, especially in rural areas

  • Foreign buyers relying on trust or informal nominees often lose legal standing in court

Foreign investors should always ensure written agreements, registered rights, and independent verification of land title status.

Conclusion

Property and real estate disputes in Thailand involve complex intersections of civil rights, administrative law, and land title systems. While the Thai judiciary provides structured remedies through the civil court system, real estate conflicts are often prolonged by ambiguous ownership, undocumented arrangements, and foreign ownership restrictions.

To successfully navigate these disputes, litigants must rely not only on documentary evidence and registration records, but also on a deep understanding of property law, title hierarchy, and judicial procedure. For foreign nationals, legal clarity, proper structuring, and pre-emptive due diligence remain critical to minimizing litigation risks.

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