Property and Real Estate Disputes in Thailand

Property and real estate disputes in Thailand arise from a unique intersection of codified land law, procedural formalism, and fragmented enforcement practices. With land ownership tightly regulated—especially for foreigners—and land rights often layered across title systems, usage rights, and public restrictions, legal conflicts frequently emerge. These disputes demand a thorough understanding of civil law procedures, administrative regulation, and the practicalities of enforcement in Thai courts.

This article explores the common types of property disputes in Thailand, relevant laws, jurisdictional processes, evidentiary issues, and remedies available under Thai law.

I. Legal Framework for Property Rights

Property and land ownership in Thailand is governed primarily by the following statutes:

• Civil and Commercial Code (CCC), Book IV: governs real property ownership, leases, servitudes, and related obligations.

• Land Code B.E. 2497 (1954): regulates title deeds, registration, and foreign ownership limitations.

• Condominium Act B.E. 2522 (1979): regulates co-ownership of condominium property.

• Land Development Act B.E. 2543 (2000): controls subdivision, infrastructure provision, and developer obligations.

• Town and City Planning Act and Building Control Act: restrict certain uses or developments through zoning and permit requirements.

II. Common Types of Real Estate Disputes

1. Title and Ownership Conflicts

These include:

• Multiple claimants to the same plot due to fraudulent or overlapping title deeds (e.g., Nor Sor 3 overlapping a Chanote)

• Disputes over land issued under suspicious or revoked titles

• Conflicts from inheritance or informal transfers not registered at the Land Office

Resolution often requires title verification, official land surveys, and judicial clarification on valid possession and registration history.

2. Boundary and Encroachment Disputes

Boundary disputes are prevalent, especially in rural areas where physical demarcation is unclear. These disputes involve:

• Buildings partially constructed across neighboring plots

• Inaccurate boundary markers or fence lines

• Government land mistakenly used or developed

Evidence may include satellite imagery, prior surveys, and expert land appraisals. The Land Department’s Survey Division may be ordered to conduct a re-survey as part of court proceedings.

3. Breach of Sale and Purchase Agreements

These disputes arise from:

• Developers or sellers refusing to transfer title after full payment

• Buyers failing to meet installment or contract milestones

• Misrepresentations about zoning or infrastructure

Specific performance and rescission are common remedies, alongside claims for damages. Courts may order forced registration of ownership at the Land Office in favor of the buyer.

4. Leasehold Disputes

Thailand permits leaseholds up to 30 years, with renewal options. Disputes include:

• Landlords refusing renewal after 30 years

• Unregistered leases (over 3 years) claimed as void

• Attempts to terminate leases for minor breaches

Unregistered leases may only be enforceable between parties—not against third parties—highlighting the importance of registration.

5. Condominium Ownership Disputes

These involve:

• Disagreements over common property fees

• Election or removal of juristic person committees

• Unlawful by-laws or arbitrary penalties

• Developer non-compliance with sectional title obligations

Disputes may be filed with the Ministry of Interior’s Condominium Committee or the Civil Court, depending on the legal nature of the issue.

6. Construction and Development Issues

Real estate disputes also involve:

• Incomplete or defective construction

• Developers abandoning projects

• Non-issuance of building permits

• Violations of environmental or zoning law

Litigation may involve breach of contract claims, tort damages, or public complaints through administrative channels.

III. Legal Procedure for Dispute Resolution

A. Jurisdiction

Property disputes are generally filed in the Civil Court or Provincial Court in the location where the land is situated. Jurisdiction may also depend on:

• Claim amount (Municipal Court vs. General Civil Court)

• Involvement of foreign parties (International Trade and IP Court in some cross-border cases)

Administrative courts handle challenges to government actions (e.g., expropriation, permit revocation).

B. Pre-Trial and Filing

Before filing, legal practitioners often:

• Issue a formal demand letter to attempt resolution

• Verify title documents with the Land Office

• Collect notarized contracts, payment receipts, construction records

A plaint (lawsuit) is filed with a court fee (typically 2% of claimed amount, capped at THB 200,000). The court may refer the matter to court-annexed mediation before trial begins.

IV. Evidence and Judicial Standards

Thai courts emphasize:

• Registered documents (e.g., land titles, leases, mortgage registrations)

• Official records from government agencies

• Expert reports (e.g., land surveys, valuations)

• Witness testimony, especially from neighbors, land officers, or developers

Forged or altered documents may trigger criminal proceedings under the Penal Code and invalidate transactions retroactively.

The court may issue interim injunctions to halt construction, prevent sales, or freeze assets pending outcome.

V. Remedies and Enforcement

Typical court-ordered remedies in property disputes include:

1. Specific performance (e.g., forced transfer of title)

2. Rescission of contract with return of money or compensation

3. Damages for loss of opportunity, rental value, or defects

4. Removal orders for unlawful structures

5. Possession orders to eject unlawful occupiers

Once final, judgments are enforced by the Legal Execution Department, which may:

• Register transfers at the Land Office

• Auction seized property

• Impose liens or garnishments on bank accounts

VI. Alternative and Administrative Remedies

A. Mediation

Court-mandated mediation is widely used in civil cases. If successful, the settlement is recorded as a court judgment and enforceable. Private mediation is also available through centers like the Thai Arbitration Center (THAC).

B. Arbitration

Commercial real estate projects—especially with foreign investors—often include arbitration clauses. Awards from arbitrators are enforceable under the Arbitration Act B.E. 2545, and foreign awards may be enforced under the New York Convention.

C. Regulatory Complaints

Certain disputes may be addressed administratively:

• Condominium disputes: Department of Lands, Condominium Affairs Committee

• Developer misconduct: Office of Consumer Protection Board

• Building or land zoning: Municipal or district planning departments

Administrative bodies may revoke permits, order compliance, or refer cases for prosecution.

VII. Foreign Parties and Special Considerations

Thailand prohibits land ownership by foreigners (except via BOI/IEAT privileges), leading many to structure property interests through:

• Leasehold (30 years)

• Superficies or Usufruct

• Company ownership (often scrutinized for nominee structures)

Disputes commonly arise from:

• Non-renewal of leaseholds

• Invalid nominee companies

• Unregistered or forged agreements

Foreigners are strongly advised to register rights properly and avoid informal arrangements. Nominee landholding structures are illegal and subject to nullification and criminal penalties.

Foreigners may litigate in Thai courts but must do so through licensed Thai attorneys. All documents must be translated and certified.

Conclusion

Property and real estate disputes in Thailand span a wide spectrum—from title irregularities and lease conflicts to construction and co-ownership issues. The law offers structured remedies through the courts, arbitration, and administrative agencies, but the process is formal, evidence-driven, and slow.

Success in such disputes depends on clear documentation, registered legal rights, and professional legal representation. Foreign investors should proceed with caution and ensure compliance with both substantive and procedural Thai law, as informal or undocumented arrangements are particularly vulnerable to challenge or non-enforcement.