Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand. Thailand’s real estate market—while offering significant investment potential—presents a variety of legal risks, particularly for foreign investors, joint-venture developers, and landowners. Property and real estate disputes in Thailand typically arise from issues involving ownership, title validity, boundary encroachment, leasehold rights, construction defects, and development contracts. These disputes are governed by the Thai Civil and Commercial Code (CCC), the Land Code, and special judicial procedures handled by the Thai civil courts.

This article explores the legal framework and litigation process surrounding real estate disputes in Thailand, providing practical insight into how these cases are adjudicated, what evidence is required, and what remedies are available.

1. Legal Framework and Relevant Statutes

Property and real estate matters in Thailand are primarily governed by the following statutes:

  • Civil and Commercial Code (CCC) – regulates contracts, leaseholds, property rights, and obligations

  • Land Code B.E. 2497 (1954) – governs land ownership, land offices, and registration systems

  • Condominium Act B.E. 2522 (1979) – regulates ownership and management of condominium units

  • Building Control Act B.E. 2522 (1979) – controls construction permits and zoning

  • Environmental laws (for EIA-related disputes)

In practice, disputes are resolved in the Civil Courts or, in some public land or regulatory matters, the Administrative Court.

2. Common Types of Real Estate Disputes

2.1 Title Disputes

Disputes over land title often arise due to:

  • Fraudulent or overlapping land title deeds (e.g., Nor Sor 3 vs. Chanote)

  • Improper land encroachment onto government or forest reserve lands

  • Inheritance disputes where ownership transfer is contested

Resolution typically requires litigation supported by Land Office records, cadastral maps, and witness testimony, sometimes involving a survey conducted by court order.

2.2 Boundary and Encroachment Claims

Under Sections 1336–1339 of the CCC, owners have exclusive rights to use and enjoy their property, and may prevent unlawful encroachment. Disputes often involve:

  • Encroachment by neighboring structures or fences

  • Misinterpretation of official boundaries

  • Errors in original land surveys or measurements

Boundary disputes may require joint inspections by the Land Office, court-appointed surveyors, and expert witnesses.

2.3 Breach of Sale and Purchase Agreements

Common breaches include:

  • Seller failing to transfer title after receiving payment

  • Buyer failing to complete payment

  • Title not matching contractual representations

  • Misrepresentation of property zoning, easements, or liens

Remedies may include rescission, damages, or specific performance, depending on the contractual terms and stage of breach.

2.4 Leasehold Disputes

Foreigners are not permitted to own land but may enter into long-term lease agreements. Disputes often arise when:

  • The lease is not registered (making it unenforceable beyond 3 years under Section 538 CCC)

  • The lessor sells the property without honoring the lease

  • Parties disagree on early termination or rent adjustments

Courts will scrutinize registration status, written terms, and possession evidence to determine enforceability.

2.5 Co-ownership and Joint Venture Disputes

Thai and foreign co-ownership often occurs via:

  • Nominee structures (which are legally questionable)

  • Thai limited companies with foreign shareholders

  • Unregistered joint ventures

Disputes can involve breach of fiduciary duties, shareholder deadlock, misuse of company property, or attempts to remove co-owners. Such cases often involve both civil claims and company law proceedings.

2.6 Construction and Defect Disputes

These arise when developers:

  • Deliver properties with latent defects

  • Fail to complete construction within the agreed timeframe

  • Violate permitted design or zoning laws

Under Section 600–604 CCC, contractors may be liable for defects within one year of delivery unless otherwise agreed. Construction disputes are typically complex and require expert reports, architectural plans, and site inspections.

3. Litigation Process and Jurisdiction

3.1 Jurisdiction

Most real estate disputes fall under the Civil Court system. Jurisdiction depends on:

  • Location of the land (provincial jurisdiction)

  • Amount in dispute (impacts court fees)

  • Whether it involves a condominium or lease, which may invoke additional regulations under specific Acts

In cases involving government land, expropriation, or administrative orders, the Administrative Court has exclusive jurisdiction.

3.2 Filing and Procedure

  • The plaintiff files a complaint in Thai language with evidence and legal arguments

  • The defendant must file a written answer

  • The court sets hearing dates for witness examination and cross-examination

  • Expert witnesses (e.g., land surveyors, engineers) are often required

Most cases take 12–24 months from filing to judgment. Appeals may extend this timeline.

4. Evidence and Expert Testimony

4.1 Documentary Evidence

  • Land title deeds (Chanote, Nor Sor 3, etc.)

  • Contracts and lease agreements

  • Survey maps and boundary drawings

  • Government permits and approvals

  • Payment receipts

4.2 Expert Witnesses

The Thai courts frequently rely on:

  • Land surveyors (to determine physical boundaries)

  • Engineers or architects (in construction cases)

  • Forensic document examiners (in forgery or misrepresentation cases)

Expert reports must be clear, relevant, and presented in Thai. The court may also appoint its own neutral expert.

5. Remedies Available

5.1 Specific Performance

Thai courts may compel a party to perform contractual obligations (e.g., transfer land title) under Section 213 CCC, unless performance has become impossible or unreasonably burdensome.

5.2 Rescission and Damages

Parties may rescind the contract and seek:

  • Refund of payments

  • Compensation for costs (e.g., broker fees, legal fees, opportunity costs)

  • Damages for loss of use or investment potential

Damages must be proven with reasonable certainty, and courts may award interest at statutory rates (currently 3% annually unless otherwise agreed).

5.3 Injunctions

In boundary or encroachment disputes, courts may issue:

  • Temporary injunctions to halt construction

  • Demolition orders for unlawful structures

  • Possessory protection under Section 1337 for rightful landholders

6. Enforcement of Judgments

Thai judgments are enforceable via:

  • Writs of execution

  • Seizure and auction of assets

  • Title registration orders through the Land Office

If the losing party refuses to comply, court execution officers may take possession or request police assistance.

Foreign judgments (e.g., from Hong Kong or Singapore) are not enforceable directly in Thailand, but may be presented as evidence of debt in a new proceeding.

7. Arbitration and Alternative Dispute Resolution (ADR)

Some high-value real estate contracts contain arbitration clauses, especially in foreign-invested projects. Thailand is a party to the New York Convention, and arbitral awards are enforceable under the Arbitration Act B.E. 2545 (2002).

Disputes can be submitted to:

  • Thai Arbitration Institute (TAI)

  • Thailand Arbitration Center (THAC)

  • International arbitration centers (if agreed by parties)

Arbitration may offer faster and confidential resolution, especially in joint venture or cross-border land use cases.

8. Risks for Foreign Investors

8.1 Nominee Structures

Use of Thai nationals as “nominees” to hold land on behalf of foreigners is illegal under Section 96 of the Land Code. In disputes, such arrangements are unenforceable and may result in forfeiture of the land.

8.2 Unregistered Rights

Failure to register a lease or usufruct (for terms over 3 years) may render the arrangement unenforceable against third parties under Section 538 CCC.

8.3 Cultural and Procedural Factors

Real estate transactions often involve informal negotiations, cash payments, or verbal promises, which are difficult to enforce. Proper contract drafting, due diligence, and notarized documentation are essential.

Conclusion

Real estate disputes in Thailand involve a complex intersection of contract, property, administrative, and procedural law. While the Thai legal system offers clear statutory pathways to enforce property rights, the success of litigation depends heavily on documentation, land office records, expert evidence, and procedural discipline.

Foreign investors and landowners must understand the limits of their rights under Thai law, ensure their agreements are properly registered, and avoid informal arrangements that may be unenforceable. When disputes arise, early legal intervention, expert testimony, and awareness of judicial procedures are critical to protecting one’s interests.

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