Property and Real Estate Disputes in Thailand

Property and Real Estate Disputes in Thailand. Property and real estate are among the most significant investments in Thailand for both locals and foreigners. But with high values at stake, disputes are common and often complex. They can arise from unclear title deeds, contractual breaches, inheritance claims, co-ownership disagreements, landlord-tenant issues, construction defects, or fraudulent transactions. This article provides a comprehensive, practitioner-level examination of property and real estate disputes in Thailand, including the legal framework, common types of disputes, court processes, and practical strategies for resolution.

1. Legal Framework Governing Property in Thailand

Several bodies of law regulate property ownership, transfer, and disputes in Thailand:

• Civil and Commercial Code (CCC): Governs contracts, leases, mortgages, servitudes, co-ownership, and succession.

• Land Code (1954): Governs registration, title deeds, and land ownership restrictions (particularly foreign ownership).

• Condominium Act (1979): Governs ownership, management, and disputes in condominium developments.

• Building Control Act (1979): Governs construction permits and compliance with building regulations.

• Expropriation of Immovable Property Act: Governs government takings and compensation.

• Special Courts: Certain real estate disputes (construction, commercial contracts, IP rights tied to real estate development) may be handled in specialized courts.

The relevant framework depends on the dispute — for example, a boundary line dispute often involves the Land Office, while a breach of a sale and purchase agreement falls under civil law.

2. Common Types of Property and Real Estate Disputes

2.1 Title Deed Disputes

• Problem: Overlapping land claims, fraudulent issuance of title deeds (chanote), or misrepresentation of land type (e.g., forest reserve vs private land).

• Resolution: Administrative review by the Land Department, sometimes requiring litigation to cancel or rectify deeds.

2.2 Sale and Purchase Agreement Disputes

• Problem: Breach of payment terms, failure to transfer land at the Land Office, defective disclosure of encumbrances.

• Resolution: Civil suits for specific performance, rescission, or damages. Courts often consider whether contractual conditions precedent were satisfied.

2.3 Lease and Tenancy Disputes

• Problem: Early termination, unpaid rent, disputes over repairs, or unlawful eviction.

• Resolution: Lawsuits for unpaid rent or eviction. The CCC limits leases of immovable property to 30 years (renewable), which often becomes a point of contention when renewal clauses are not properly registered.

2.4 Condominium Disputes

• Problem: Conflicts between co-owners and the condominium juristic person, disputes over management fees, common area usage, or voting rights.

• Resolution: Disputes may be mediated by the Condominium Committee, but contested matters often go to civil court.

2.5 Construction Disputes

• Problem: Delayed completion, defective construction, or failure to comply with permits.

• Resolution: Contractors and owners often litigate over breach of contract and claims for damages. Expert evidence (engineers, surveyors) is heavily relied on.

2.6 Inheritance and Co-Ownership Disputes

• Problem: Disagreements among heirs about division or sale of property, or disputes over inheritance rights.

• Resolution: The court may order partition of property, forced auction, or recognition of inheritance claims.

2.7 Mortgage and Foreclosure Disputes

• Problem: Debtors defaulting on property loans.

• Resolution: Mortgagees (usually banks) can foreclose through court proceedings, leading to judicial sale of the property.

3. Litigation Process in Property Disputes

1. Filing the Case: The plaintiff files a plaint at the competent civil court. Jurisdiction depends on location of property and claim size.

2. Preliminary Proceedings: The court may order mediation or settlement conferences before trial.

3. Evidence: Parties submit contracts, title deeds, survey maps, witness testimony, and expert reports (especially in construction or boundary cases).

4. Trial: Judge-led, with witness examination and cross-examination.

5. Judgment: The court issues orders for transfer, cancellation of deeds, damages, eviction, or foreclosure.

6. Appeals: Cases may be appealed to the Court of Appeal and, on points of law, to the Supreme Court.

4. Role of Government Authorities

• Land Office: Key in verifying deeds, registering transfers, leases, mortgages, or servitudes.

• Department of Lands: Handles disputes over fraudulent or overlapping title deeds.

• Local Authorities: In construction disputes, local administrative organizations verify compliance with building permits.

• Courts: Final authority on contractual disputes, inheritance rights, and enforcement of judgments.

5. Alternative Dispute Resolution (ADR)

Not all disputes go to trial. Thailand increasingly promotes mediation and arbitration:

• Court-annexed mediation: Judges may encourage parties to mediate before hearings proceed.

• Private mediation: Used in family and inheritance-related property conflicts.

• Arbitration: Frequently used in construction disputes, particularly where international contractors are involved. The Thai Arbitration Institute and Thailand Arbitration Center are recognized venues.

ADR is often faster and more confidential than litigation, though enforceability must still pass through Thai courts.

6. Real-World Case Examples

• Case 1: Overlapping Deeds
  Two neighbors in Chiang Mai both held chanote deeds covering the same plot. The Land Department reviewed cadastral surveys and found irregular issuance of one deed. The civil court cancelled the fraudulent deed, reinstating ownership to the legitimate holder.

• Case 2: Breach of Condo Purchase Agreement
  A foreign buyer paid installments on an off-plan condominium unit, but the developer failed to complete construction on time. The buyer sued for rescission and refund. The court awarded damages plus statutory interest, finding the developer in breach.

• Case 3: Lease Renewal Dispute
  A foreigner leased land for 30 years with a renewal clause. Upon expiry, the landlord refused renewal. Because the renewal clause was not registered at the Land Office, the court ruled the lease ended, illustrating the importance of proper registration.

• Case 4: Construction Defects
  A Bangkok luxury residence suffered structural cracks after completion. The court admitted expert engineer testimony showing faulty foundations. The contractor was ordered to repair and compensate the owner.

7. Practical Challenges in Real Estate Disputes

• Lengthy proceedings: Property litigation can last several years, especially if appeals are pursued.

• Evidence burden: Courts require strong documentary evidence (registered deeds, contracts, surveys). Verbal agreements carry little weight.

• Foreign ownership restrictions: Foreigners may face challenges asserting rights if their arrangements (e.g., nominee structures) contravene the Land Code.

• Enforcement: Winning a judgment is one step; enforcement against assets may be time-consuming.

8. Preventive Measures

• Title Due Diligence: Conducting a title search at the Land Office before purchase to verify ownership and encumbrances.

• Proper Registration: Leases, mortgages, usufructs, and servitudes must be registered to be enforceable.

• Clear Contracts: Detailed sale and purchase agreements reduce ambiguity in disputes.

• Use of Escrow Accounts: Increasingly common in high-value property deals to protect both parties.

• Legal Counsel: Engaging Thai counsel early reduces the risk of later litigation.

9. Conclusion

Property and real estate disputes in Thailand span a wide spectrum, from technical boundary conflicts to high-value commercial development disagreements. The Civil and Commercial Code, Land Code, and Condominium Act form the backbone of property law, while courts and administrative agencies play complementary roles in resolving conflicts.

Disputes often hinge on proper registration, documentary evidence, and compliance with statutory procedures. While court litigation remains the primary forum, mediation and arbitration are gaining ground as practical alternatives.

Ultimately, careful due diligence, precise contractual drafting, and awareness of Thai property law are the best tools to prevent disputes. When litigation is unavoidable, parties should be prepared for a process that is formal, document-driven, and reliant on expert testimony, but one that ultimately provides enforceable resolutions under Thai law.