Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand. Thailand’s property and real estate sector continues to attract substantial foreign and domestic investment, particularly in urban centers and resort destinations such as Bangkok, Phuket, Chiang Mai, and Pattaya. However, Thailand’s property regime—governed by the Civil and Commercial Code (CCC), the Land Code, the Condominium Act B.E. 2522 (1979), and various ministerial regulations—imposes complex ownership and transactional rules. These, combined with unclear land titles, informal arrangements, nominee structures, and regulatory inconsistencies, give rise to a wide array of property and real estate disputes.

This article provides an in-depth examination of legal and procedural dimensions of real estate disputes in Thailand, addressing common causes of conflict, judicial remedies, evidentiary requirements, and enforcement outcomes.

1. Legal Sources and Jurisdiction

1.1 Governing Laws

Key legal instruments include:

• Civil and Commercial Code (Book IV – Property, Book V – Obligations)

• Land Code B.E. 2497 (1954)

• Condominium Act B.E. 2522

• Land Reform for Agriculture Act

• Foreign Business Act (where nominee issues are involved)

• Environmental and Building Control Laws (zoning, encroachment)

In certain cases, administrative regulations or ministerial notifications may supplement substantive property rights.

1.2 Judicial Authority

Disputes are adjudicated in the Civil Court or relevant provincial courts of first instance. Appeals lie with the Court of Appeal, and legal issues may be further reviewed by the Supreme Court (Dika Court). Specialized forums such as the Administrative Court may be involved in disputes against government land agencies or where permits are challenged.

2. Common Categories of Property Disputes

2.1 Title Disputes and Encumbrances

Thailand has multiple classes of land title, including:

• Chanote (NS4J) – full ownership, most secure

• Nor Sor 3 Gor / Nor Sor 3 – lesser evidentiary value, sometimes overlapping boundaries

• Possessory rights – not legally transferrable, subject to administrative review

Disputes may arise from:

• Overlapping boundaries

• Forgery or tampering of title deeds

• Disputes over adverse possession or prescription (Sections 1382–1393 CCC)

Resolving title disputes often requires a title deed survey, forensic examination, and adjudication by the Land Office or the court.

2.2 Breach of Sale and Purchase Agreements

Common breach scenarios include:

• Developer fails to transfer land or condo ownership

• Buyer defaults on installment payments

• Disputes over earnest money and deposit forfeiture

• Delay in registration or title transfer

Such disputes are contractual in nature and are pursued under Sections 369–395 of the CCC. Relief may include specific performance, damages, or contract rescission.

2.3 Co-Ownership and Partition

Co-owners (often family members or business partners) may disagree on:

• Use and possession rights

• Sale or development decisions

• Responsibility for taxes or maintenance

Under Section 1357 CCC, any co-owner may demand partition unless contractually restricted. The court may order physical partition or judicial sale, depending on the property’s nature.

2.4 Leasehold and Usufruct Conflicts

Thai law recognizes:

• Leasehold (maximum 30 years, renewable)

• Usufruct (Section 1417 CCC) – personal right of use, often used in foreigner-local arrangements

Disputes commonly involve:

• Lease invalidity due to lack of Land Office registration

• Eviction claims against long-term occupants

• Lease expiration and refusal to vacate

• Invalid renewal clauses

Courts examine the registration status, contractual language, and parties’ intent.

2.5 Condominium Disputes

Issues under the Condominium Act may include:

• Developer’s failure to deliver unit per specifications

• Disputes over juristic person management

• Unfair common area expenses

• Improper general meeting resolutions

Remedies may be pursued through civil litigation or administrative complaints to the Department of Land.

2.6 Encroachment and Boundary Violations

Encroachment involves unlawful occupation or building on another’s land. It may be:

• Intentional or negligent

• Private or public land

• Temporary or structural (buildings, walls)

Actions are brought under Section 1308 CCC (recovery of property) or Section 1310 (demolition of encroaching structure). Expert land surveys and aerial photography are commonly introduced in evidence.

3. Foreign Ownership and Nominee Disputes

3.1 Land Ownership Restrictions

Foreigners may not own land in Thailand, except:

• Through Board of Investment (BOI) privileges

• In industrial estates via IEAT approvals

• Under inheritance, with use restricted

• Via long-term lease, superficies, or usufruct

3.2 Nominee Structures and Sham Transactions

Using Thai nationals as “nominee” owners on behalf of foreigners is illegal under Section 96 bis of the Land Code and may result in:

• Revocation of land rights

• Civil penalties and possible criminal charges

Courts will analyze intent, financial flows, and control to determine beneficial ownership. Litigation often involves both property and criminal courts, as well as administrative land office review.

4. Procedures and Evidence in Litigation

4.1 Filing and Venue

A complaint is filed in civil court with:

• Legal claims

• Supporting documentation (title deeds, contracts, photographs, correspondence)

Where the claim exceeds THB 300,000, it falls under the jurisdiction of the provincial court (not municipal court).

4.2 Evidentiary Challenges

• Title searches from the Land Office

• Surveyor testimony and GPS data

• Contract authenticity (notarization, witnesses)

• Valuation evidence (for damage or compensation claims)

Thai courts rely heavily on documentary evidence, and foreign documents must be translated, legalized, and authenticated.

4.3 Remedies Available

• Declaratory relief (ownership, title validity)

• Injunctions (stop construction, prevent transfer)

• Damages (contractual or tortious)

• Restitution or rescission

5. Enforcement of Judgments

After a favorable ruling, the prevailing party may seek enforcement via:

• Court-ordered seizure and auction of property

• Registration changes at the Land Office

• Eviction orders executed by bailiffs

• Administrative coordination with Land Department or local government

Thai courts do not enforce foreign judgments, but foreign arbitral awards may be enforced under the Arbitration Act B.E. 2545, if recognized by Thai law.

6. Alternative Dispute Resolution (ADR)

Mediation and arbitration are increasingly used in property disputes, especially in:

• Condominium disputes (via Condominium Juristic Person Mediation)

• High-value foreign investment conflicts

• Construction arbitration (often under TAI or THAC rules)

Arbitral awards require court recognition and may be challenged only on narrow legal grounds.

7. Statute of Limitations

Time limits vary:

• 10 years for contractual claims (e.g., breach of land sale)

• 5 years for compensation or construction disputes

• 1 year for tortious claims like nuisance or damage from encroachment

Limitation periods may be interrupted by formal demand or acknowledgment of debt.

8. Preventive Measures and Due Diligence

To avoid disputes:

• Conduct land title verification through the Land Office

• Register all land leases over 3 years

• Avoid nominee structures or undisclosed beneficial arrangements

• Clearly define boundary demarcation in contracts and obtain GPS surveys

• Use lawyers or agents familiar with local real estate regulations

Conclusion

Property and real estate disputes in Thailand are legally complex and fact-intensive, often involving overlapping issues of title law, contract enforcement, regulatory compliance, and public policy. The legal system provides well-established procedural avenues for dispute resolution, but outcomes depend heavily on the quality of documentation, lawful registration, and clarity of the parties’ intentions.

Foreign investors must be particularly cautious due to land ownership restrictions, nominee prohibitions, and the necessity for strict compliance with Thai registration and procedural rules. Judicial enforcement, though effective, can be protracted and requires strategic litigation planning.